📊 NGVT Key Takeaways
Is Ingevity Corp (NGVT) a Good Investment?
Despite reporting strong net income growth (+61.2% YoY) and high margins (23.2%), Ingevity exhibits severe financial distress: negative operating cash flow (-$2.0M), negative free cash flow (-$12.3M), and critically dangerous leverage with interest coverage of 0.4x indicating inability to service $1.2B debt from operations. Revenue contraction (-2.7% YoY) combined with extreme debt/equity ratio (31.03x) and minimal equity base ($38.9M) suggest significant solvency risk.
Ingevity generates strong free cash flow and maintains healthy gross/operating margins, but GAAP profitability remains negative with a modest revenue decline. The capital structure is highly leveraged with minimal equity and a sub-1.0 quick ratio, creating limited cushion against volatility. Until the company demonstrates sustained net profitability and visible deleveraging, risk outweighs fundamentals.
Ingevity Corp Key Strengths (NGVT)
- Strong net income growth at +61.2% YoY
- Healthy gross margin of 45.1% and net margin of 23.2%
- Adequate cash position of $95.4M provides near-term liquidity buffer
- Robust operating cash flow and 23.4% FCF margin
- Solid gross (39.5%) and operating (35.9%) margins
- Interest coverage of 5.3x indicates near-term serviceability
NGVT Stock Risks: Ingevity Corp Investment Risks
- Interest coverage of 0.4x - operating income cannot cover interest expense, indicating imminent debt service risk
- Negative operating cash flow (-$2.0M) and negative free cash flow (-$12.3M) - profits not converting to cash, earnings quality concern
- Extreme leverage with 31.03x debt/equity ratio and $1.2B debt against only $38.9M equity - structural solvency risk
- Declining revenue (-2.7% YoY) signals organic growth challenges and top-line contraction
- Quick ratio of 0.92x below critical 1.0x threshold, indicating liquidity strain
- Extreme leverage and thin equity base (Debt/Equity 40.8x)
- Persistent net losses and negative ROA
- Tight liquidity (quick ratio 0.79x) amid revenue decline
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Interest coverage ratio improvement and debt reduction progress
- Revenue stabilization and return to growth
- Free cash flow generation and sustainability of cash position
- Debt/equity deleveraging trajectory
- Net margin (sustained GAAP profitability)
- Leverage trajectory (net debt/EBITDA and debt reduction)
Ingevity Corp (NGVT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ingevity Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
NGVT Profit Margin, ROE & Profitability Analysis
NGVT vs Materials Sector: How Ingevity Corp Compares
How Ingevity Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ingevity Corp Stock Overvalued? NGVT Valuation Analysis 2026
Based on fundamental analysis, Ingevity Corp has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ingevity Corp Balance Sheet: NGVT Debt, Cash & Liquidity
NGVT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ingevity Corp's revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $-0.15 indicates the company is currently unprofitable.
NGVT Revenue Growth, EPS Growth & YoY Performance
NGVT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $247.9M | $20.5M | $0.56 |
| Q3 2025 | $333.1M | $20.5M | $1.18 |
| Q2 2025 | $365.1M | $20.5M | $-3.46 |
| Q1 2025 | $284.0M | $20.5M | $0.56 |
| Q3 2024 | $376.9M | $25.2M | $0.69 |
| Q2 2024 | $390.6M | $35.5M | $0.97 |
| Q1 2024 | $340.1M | $50.7M | $1.35 |
| Q3 2023 | $446.0M | $25.2M | $0.69 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ingevity Corp Dividends, Buybacks & Capital Allocation
NGVT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ingevity Corp (CIK: 0001653477)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NGVT
What is the AI rating for NGVT?
Ingevity Corp (NGVT) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NGVT's key strengths?
Claude: Strong net income growth at +61.2% YoY. Healthy gross margin of 45.1% and net margin of 23.2%. ChatGPT: Robust operating cash flow and 23.4% FCF margin. Solid gross (39.5%) and operating (35.9%) margins.
What are the risks of investing in NGVT?
Claude: Interest coverage of 0.4x - operating income cannot cover interest expense, indicating imminent debt service risk. Negative operating cash flow (-$2.0M) and negative free cash flow (-$12.3M) - profits not converting to cash, earnings quality concern. ChatGPT: Extreme leverage and thin equity base (Debt/Equity 40.8x). Persistent net losses and negative ROA.
What is NGVT's revenue and growth?
Ingevity Corp reported revenue of $258.0M.
Does NGVT pay dividends?
Ingevity Corp does not currently pay dividends.
Where can I find NGVT SEC filings?
Official SEC filings for Ingevity Corp (CIK: 0001653477) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NGVT's EPS?
Ingevity Corp has a diluted EPS of $1.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NGVT's fundamental grade?
Based on our AI fundamental analysis in May 2026, Ingevity Corp has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NGVT stock overvalued or undervalued?
Valuation metrics for NGVT: ROE of 153.7% (sector avg: 14%), net margin of 23.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is NGVT's AI grade for 2026?
Our dual AI analysis gives Ingevity Corp a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NGVT's free cash flow?
Ingevity Corp's operating cash flow is $-2.0M, with capital expenditures of $10.3M. FCF margin is -4.8%.
How does NGVT compare to other Materials stocks?
Vs Materials sector averages: Net margin 23.2% (avg: 10%), ROE 153.7% (avg: 14%), current ratio 1.42 (avg: 1.6).
Is Ingevity Corp carrying too much debt?
NGVT has a debt-to-equity ratio of 31.03x, which is above the Materials sector average of 0.6x. However, the current ratio of 1.42 suggests adequate short-term liquidity.
Why is NGVT's return on equity (ROE) so high?
Ingevity Corp has a return on equity of 153.7%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 23.2% net margin.