Ingevity (NGVT): Evaluating Value After New Battery Materials Licensing Deal with CHASM

Ingevity (NGVT) has announced a new licensing agreement with CHASM, giving it the rights to manufacture advanced carbon nanotube additives for batteries in North America and select European countries. This move directly targets the fast-expanding EV battery market.

See our latest analysis for Ingevity.

This licensing breakthrough with CHASM signals a fresh chapter for Ingevity, boosting investor confidence even as the stock has seen a 24.9% year-to-date share price return and a 7.4% total shareholder return over twelve months. Momentum has been solid despite a recent dip, and the buyback activity plus a pivot toward EV battery tech suggests the market is reassessing both the growth potential and risk profile.

If moves like these in the battery and materials space have your attention, you might want to see what automakers and related suppliers are doing. Check out See the full list for free.

With the stock still trading at a hefty discount to analyst targets, but recent momentum fueling new optimism, the real question for investors is whether there is genuine value left to capture or if markets have already priced in this next chapter of growth.

Most Popular Narrative: 24.3% Undervalued

With Ingevity’s fair value pegged at $65.25 by the most widely followed narrative, and shares last closing at $49.37, the gap remains substantial. This narrative sets up a compelling opportunity for those watching the company’s evolving strategy and financial outlook.

Accelerated portfolio repositioning and the advanced-stage divestiture of non-core, lower-margin businesses (Industrial Specialties and CTO refinery) are expected to drive a step-change in margin profile. This would enable greater focus and capital allocation toward higher-growth, value-added specialty chemicals, supporting both revenue quality and sustained EBITDA margin improvement.

Read the complete narrative.

Curious what bold financial moves underlie this valuation? The narrative is betting on a future profit rebound, major product mix shifts, and margin expansion few expect. Dive in to see which strategic assumptions power this premium fair value estimate. There’s a lot that’s about to surprise you.

Result: Fair Value of $65.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weakness in industrial markets and exposure to global tariff volatility could limit earnings momentum and create challenges for margin expansion.

Find out about the key risks to this Ingevity narrative.

Another View: What Multiples Say

Taking a look through the lens of sales multiples, Ingevity is trading at 1.3 times sales, noticeably higher than both the US Chemicals industry benchmark of 1.2x and its peer average of 1.1x. The fair ratio for this metric sits even lower at 1.1x, suggesting investors are paying a premium despite ongoing losses. Could the market be getting ahead of itself, or is this premium actually justified by looming profitability?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ingevity Narrative

If you have a different perspective or want to shape your own insights, it only takes a few minutes to build your personal take. Do it your way

A great starting point for your Ingevity research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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