NYSE:NGVT

Stock Analysis Report

Executive Summary

Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, Europe, the Asia-Pacific, and internationally.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Ingevity's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NGVT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

NGVT

-4.4%

US Chemicals

-2.0%

US Market


1 Year Return

-69.5%

NGVT

-33.8%

US Chemicals

-15.1%

US Market

Return vs Industry: NGVT underperformed the US Chemicals industry which returned -33.6% over the past year.

Return vs Market: NGVT underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

NGVTIndustryMarket
7 Day3.6%-4.4%-2.0%
30 Day-25.8%-24.7%-19.7%
90 Day-59.0%-31.1%-23.2%
1 Year-69.5%-69.5%-29.5%-33.8%-13.4%-15.1%
3 Year-39.5%-39.5%-12.7%-29.6%10.9%3.7%
5 Yearn/a-3.5%-24.5%28.4%14.4%

Price Volatility Vs. Market

How volatile is Ingevity's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ingevity undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NGVT ($36.36) is trading below our estimate of fair value ($74.84)

Significantly Below Fair Value: NGVT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NGVT is good value based on its PE Ratio (8.3x) compared to the Chemicals industry average (14.1x).

PE vs Market: NGVT is good value based on its PE Ratio (8.3x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NGVT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NGVT is overvalued based on its PB Ratio (2.9x) compared to the US Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Ingevity forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGVT's forecast earnings growth (10.2% per year) is above the savings rate (1.7%).

Earnings vs Market: NGVT's earnings (10.2% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: NGVT's earnings are forecast to grow, but not significantly.

Revenue vs Market: NGVT's revenue (3.2% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: NGVT's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NGVT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ingevity performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NGVT has high quality earnings.

Growing Profit Margin: NGVT's current net profit margins (14.2%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: NGVT's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: NGVT's earnings growth over the past year (8.6%) is below its 5-year average (18% per year).

Earnings vs Industry: NGVT earnings growth over the past year (8.6%) exceeded the Chemicals industry -11.3%.


Return on Equity

High ROE: Whilst NGVT's Return on Equity (34.61%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Ingevity's financial position?


Financial Position Analysis

Short Term Liabilities: NGVT's short term assets ($463.2M) exceed its short term liabilities ($215.5M).

Long Term Liabilities: NGVT's short term assets ($463.2M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: NGVT's debt to equity ratio (221.3%) is considered high.

Reducing Debt: NGVT's debt to equity ratio has increased from 0.7% to 221.3% over the past 5 years.

Debt Coverage: NGVT's debt is well covered by operating cash flow (23.5%).

Interest Coverage: NGVT's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: NGVT has a high level of physical assets or inventory.

Debt Coverage by Assets: NGVT's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Ingevity's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NGVT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NGVT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NGVT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NGVT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NGVT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Rick Kelson (72yo)

0.17

Tenure

US$265,088

Compensation

Mr. Richard B. Kelson, also known as Rick, J.D. is Interim Chief Executive Officer and Interim President at Ingevity Corporation since February 20, 2020. He has been the Chief Executive Officer of ServCo,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Richard Kelson
Chairman of the Board and Interim President & CEO0.17yrUS$265.09k0.021% $299.7k
John Fortson
Executive VP5.25yrsUS$2.67m0.096% $1.4m
Katherine Burgeson
Executive VP5.25yrsUS$1.40m0.030% $436.3k
Stuart Woodcock
Executive VP & President of Performance Materials5.25yrsUS$1.31m0.027% $386.8k
Michael Smith
Executive VP and President of Performance Chemicals3.25yrsUS$1.21m0.028% $407.0k
Marty Heyne
Senior Vice President of Operationsno datano datano data
Phillip Platt
Chief Accounting Officer & Corporate Controller3.92yrsno data0.0058% $84.4k
Daniel Gallagher
Vice President of Investor Relationsno datano datano data
Jack Maurer
Vice President of Communications & Brand Managementno datano datano data
Cynthia Burns
Senior Vice President of Human Resourcesno datano datano data

4.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NGVT's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Kelson
Chairman of the Board and Interim President & CEO0.17yrUS$265.09k0.021% $299.7k
Karen Narwold
Independent Director1.17yrsUS$203.94k0.0025% $36.4k
Jean Blackwell
Independent Director3.92yrsUS$200.09k0.021% $309.7k
J. Fitzpatrick
Independent Director3.92yrsUS$192.09k0.016% $235.0k
Daniel Sansone
Independent Director3.92yrsUS$180.09k0.022% $316.4k
Luis Fernandez-Moreno
Independent Director3.92yrsUS$180.09k0.026% $380.7k
Frederick Lynch
Lead Independent Director0.17yrUS$195.09k0.026% $379.0k
Diane Gulyas
Independent Director1.17yrsUS$203.94k0.0049% $71.2k

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: NGVT's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NGVT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ingevity Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ingevity Corporation
  • Ticker: NGVT
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.450b
  • Shares outstanding: 41.83m
  • Website: https://www.ingevity.com

Number of Employees


Location

  • Ingevity Corporation
  • 5255 Virginia Avenue
  • North Charleston
  • South Carolina
  • 29406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGVTNYSE (New York Stock Exchange)YesCommmon StockUSUSDMay 2016
NGVT *BMV (Bolsa Mexicana de Valores)YesCommmon StockMXMXNMay 2016
IGXDB (Deutsche Boerse AG)YesCommmon StockDEEURMay 2016

Biography

Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, Europe, the Asia-Pacific, and internationally. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment develops, manufactures, and sells a range of specialty chemicals derived from co-products of the kraft pulping process and caprolactone monomers. This segment’s products are used in various applications comprising pavement preservation, pavement adhesion promotion, and warm mix paving; oil well service additives, oil production, and downstream application chemicals; printing inks, adhesives, agrochemicals, lubricants, and industrial intermediates; and coatings, resins, elastomers, and bio-plastics. Ingevity Corporation was incorporated in 2015 and is headquartered in North Charleston, South Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:24
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.