NYSE:NGVT

Stock Analysis Report

Executive Summary

Ingevity Corporation manufactures and sells specialty chemicals and carbon materials in the United States and internationally.

Snowflake

Fundamentals

Acceptable track record and slightly overvalued.

Risks

  • Ingevity has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-2.8%

NYSE:NGVT

-0.07%

US Chemicals

0.9%

US Market


1 Year Return

-24.5%

NYSE:NGVT

-15.3%

US Chemicals

0.3%

US Market

NGVT underperformed the Chemicals industry which returned -15.3% over the past year.

NGVT underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

NGVTIndustryMarket
7 Day-2.8%-0.07%0.9%
30 Day-24.2%-3.4%-1.9%
90 Day-12.2%-1.4%1.6%
1 Year-24.5%-24.5%-1.9%-15.3%2.6%0.3%
3 Year74.7%74.7%35.3%10.4%41.0%31.8%
5 Yearn/a31.3%2.7%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ingevity's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ingevity's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ingevity is good value based on earnings compared to the US Chemicals industry average.

Ingevity is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ingevity is poor value based on expected growth next year.


Price Based on Value of Assets

Ingevity is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ingevity's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Ingevity's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

Ingevity's revenue growth is positive but not above the United States of America market average.

Ingevity's earnings growth is positive but not above the United States of America market average.

Ingevity's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ingevity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ingevity performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ingevity's year on year earnings growth rate has been positive over the past 5 years.

Ingevity's 1-year earnings growth is less than its 5-year average (11.9% vs 16.3%)

Ingevity's earnings growth has exceeded the US Chemicals industry average in the past year (11.9% vs -2.4%).


Return on Equity

Whilst Ingevity made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Ingevity used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Ingevity's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ingevity's financial position?


Financial Position Analysis

Ingevity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ingevity's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ingevity's level of debt (326.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.4% vs 326.9% today).

Debt is not well covered by operating cash flow (19.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Ingevity's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ingevity's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ingevity has not reported any payouts.

Unable to verify if Ingevity's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ingevity has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Ingevity's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Ingevity's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

D. Wilson (56yo)

4.6yrs

Tenure

US$5,422,777

Compensation

Mr. D. Michael Wilson serves as Independent Director at Vulcan Materials Company since July 15, 2019. Mr. Wilson has been Chief Executive Officer and President of Ingevity Corporation since 2015. Mr. Wilso ...


CEO Compensation Analysis

D.'s remuneration is about average for companies of similar size in United States of America.

D.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

54.5yo

Average Age

The tenure for the Ingevity management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

62yo

Average Age

The tenure for the Ingevity board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$2,060,32501 Mar 19
John Fortson
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares18,000
Max PriceUS$115.11
SellUS$310,82828 Feb 19
Phillip Platt
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Corporate Controller
Shares2,725
Max PriceUS$114.07
SellUS$504,93326 Feb 19
Katherine Burgeson
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares4,400
Max PriceUS$114.76

Ownership Breakdown


Management Team

  • D. Wilson (56yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$5.42m
  • Mike Smith (58yo)

    Executive VP and President of Performance Chemicals

    • Tenure: 2.6yrs
    • Compensation: US$1.66m
  • John Fortson (52yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$2.22m
  • Kathy Burgeson (61yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$1.33m
  • Ed Woodcock (53yo)

    Executive VP & President of Performance Materials

    • Tenure: 4.6yrs
    • Compensation: US$1.10m
  • Phillip Platt (38yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 3.3yrs
  • Cindy Burns

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Marty Heyne

    Senior Vice President of Operations

    • Tenure: 0.0yrs
  • Daniel Gallagher

    Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Karen Narwold (59yo)

    Director

    • Tenure: 0.5yrs
  • Richard Kelson (72yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$265.06k
  • Jean Blackwell (64yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$200.06k
  • Mike Fitzpatrick (72yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$192.06k
  • Dan Sansone (67yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$180.23k
  • Luis Fernandez-Moreno (56yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$180.06k
  • Fred Lynch (54yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$195.06k
  • D. Wilson (56yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$5.42m
  • Diane Gulyas (62yo)

    Director

    • Tenure: 0.5yrs

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$3.169b
  • Shares outstanding: 41.86m
  • 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 carbon materials in the United States and internationally. The company operates through two segments, Performance Materials and Performan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:38
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.