Ingevity Corporation (NGVT) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
NGVT shows improving profitability, strong cash flow conversion, positive near-term technical price momentum (20% gain in past month), and strategic portfolio repositioning as of early 2026, supporting moderate upside potential despite some leverage risk and no recent new earnings catalysts.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Margin expansion ⢠Strong FCF ⢠High leverage NGVT delivered a clear operational turnaround in 2025âQ3 with 40% gross margin, positive EBIT ($83.3M), strong FCF ($117.8M) and ROE ~31.5%, but remains highly leveraged (debt $1.29B vs equity $138.1M) with weakened liquidity and prior-year large losses that sustain solvency risk.
Price Behavior
Key Price Behavior Insights: ⢠Steady ascent ⢠Resistance breakout ⢠Potential pullback Support Level: $59â$60 Resistance Level: $60 NGVT has broken above prior resistance around $60 and climbed steadily from $58.83 to $65.57 over the last month, showing strong upward momentum but risking short-term overbought pullbacks.
Sentiment & News
Key News Insights: ⢠27% stock rally ⢠$110M refinery sale ⢠Portfolio transformation Ingevity's strategic portfolio reshaping â including a $110M CTO refinery and Industrial Specialties sale, a 27% sixâmonth stock rally, and steady institutional buying â positions the company to focus on higherâmargin specialties and longâterm growth.
AI Summary
NGVT is no longer a scale-driven turnaround but a margin- and cash-conversion playâits equity upside now hinges on sustaining ~Q3â2025âlevel quarterly FCF and using it to rapidly cut leverage, while failure to do so (or a working-capital/commodity shock) would trigger material downside.
Description
Ingevity Corporation manufactures specialty chemicals and activated carbon products for customers across North America, APAC, Europe, the Middle East, Africa and South America. The company operates two reporting segments: Performance Materials, which produces hardwood-based and chemically activated carbons used mainly for vehicle vapor emission control and various purification applications; and Performance Chemicals, which converts tall oil, lignin and other intermediates into products for paving, oilfield services, industrial formulations and polymer applications. Founded in 1964, Ingevity is headquartered in North Charleston, South Carolina.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 2 | Jan 9 | NGVT | Ingevity Corporation | NGVT shows improving profitability, strong cash flow conversion, positive near-term technical price momentum (20% gain in past month), and strategic portfolio repositioning as of early 2026, supporting moderate upside potential despite some leverage risk and no recent new earnings catalysts. | Closed | +7.2% |