Ingevity Corp (NGVT, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a 7.61% gain, and over the past three months, it has surged by 11.30%. With a current market capitalization of $1.76 billion and a stock price of $48.64, Ingevity Corp stands out in the chemicals industry. The GF Value of the stock is currently $81.95, which is significantly lower than its past GF Value of $86.18, indicating that the stock is significantly undervalued both now and in the recent past.
Introduction to Ingevity Corp
Ingevity Corp operates within the chemicals sector, focusing on Performance Chemicals, Advanced Polymer Technologies, and Performance Materials. The company's primary revenue stream comes from its Performance Chemicals segment, which produces specialty chemicals for various industries, including asphalt paving and oil production. Ingevity's Performance Materials segment is known for its automotive carbon products, while the Advanced Polymer Technologies segment specializes in caprolactone-based polymers. The majority of Ingevity's revenue is generated in North America, reflecting the company's strong regional presence.
Assessing Ingevity's Profitability
Ingevity Corp's Profitability Rank is a robust 8 out of 10, showcasing the company's strong position within the industry. The Operating Margin stands at an impressive 15.15%, surpassing 82.15% of 1,529 companies in the same sector. However, the company's Return on Equity (ROE) is currently at -0.77%, and Return on Assets (ROA) is at -0.20%, which, while better than a portion of their peers, indicates room for improvement. The Return on Invested Capital (ROIC) is at 5.73%, which is better than 54.92% of the companies in the industry. Ingevity has maintained profitability for 9 out of the past 10 years, demonstrating consistent performance.
Growth Trajectory of Ingevity Corp
The company's Growth Rank is 6 out of 10, reflecting a balance of historical performance and future potential. Ingevity's 3-Year Revenue Growth Rate per Share is an impressive 16.60%, outperforming 73.16% of 1,464 companies in the industry. The 5-Year Revenue Growth Rate per Share also stands strong at 12.10%. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -2.04%, which is a point of concern for future revenue prospects. The 3-Year EPS without NRI Growth Rate is at -4.00%, and the 5-Year EPS without NRI Growth Rate is at a minimal 0.20%, indicating a need for strategic initiatives to boost earnings growth.
Key Shareholders in Ingevity Corp
Notable investors have taken positions in Ingevity Corp, with Chuck Royce (Trades, Portfolio) holding 660,941 shares, representing 1.82% of the company. HOTCHKIS & WILEY holds 271,530 shares, accounting for 0.75%, and Ray Dalio (Trades, Portfolio)'s stake includes 68,998 shares, making up 0.19% of Ingevity. These significant shareholders reflect confidence in the company's long-term value proposition.
Competitive Landscape
Ingevity Corp operates in a competitive chemicals industry, with close competitors like Chase Corp (CCF, Financial) with a market cap of $1.21 billion, Hawkins Inc (HWKN, Financial) at $1.57 billion, and Orion SA (OEC, Financial) at $1.38 billion. These companies, with similar market capitalizations, provide a context for Ingevity's performance and strategic positioning within the market.
Conclusion
In conclusion, Ingevity Corp's recent stock price rally can be attributed to its strong stock performance, undervaluation according to GF Value, and solid profitability metrics. While the company's growth rates in revenue and EPS present a mixed picture, the overall financial health and investor interest in Ingevity suggest a positive outlook. The company's competitive stance in the chemicals industry, alongside its significant shareholders, further solidifies its market position. Investors and stakeholders will be watching closely to see how Ingevity navigates future challenges and capitalizes on opportunities to sustain its growth trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
