Ingevity Corp

NGVT

Chemicals & Allied Products

Mkt Cap

$1.74B

PE

-15.53

Debt

$1.583B

Cash

$105.1M

EV

$3.218B

FCF

$86.8M

Market Cap

$1.74B

P/E Ratio

-15.53

Debt

$1.583B

Cash

$105.1M

EV

$3.218B

FCF

$86.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":129000000},{"time":"2015-12-30","value":79700000},{"time":"2016-12-30","value":35200000},{"time":"2017-12-30","value":126500000},{"time":"2018-12-30","value":169100000},{"time":"2019-12-30","value":183700000},{"time":"2020-12-30","value":181400000},{"time":"2021-12-30","value":118100000},{"time":"2022-12-30","value":211600000},{"time":"2023-12-30","value":-5400000}],"Sales":[{"time":"2014-12-30","value":1035500000},{"time":"2015-12-30","value":958300000},{"time":"2016-12-30","value":908300000},{"time":"2017-12-30","value":972400000},{"time":"2018-12-30","value":1133600000},{"time":"2019-12-30","value":1292900000},{"time":"2020-12-30","value":1216100000},{"time":"2021-12-30","value":1391500000},{"time":"2022-12-30","value":1668300000},{"time":"2023-12-30","value":1692100000}],"Net Margins":[{"time":"2014-12-30","value":0.1245774987928537},{"time":"2015-12-30","value":0.08316811019513722},{"time":"2016-12-30","value":0.03875371573268744},{"time":"2017-12-30","value":0.13009049773755657},{"time":"2018-12-30","value":0.14917078334509526},{"time":"2019-12-30","value":0.1420836878335525},{"time":"2020-12-30","value":0.14916536469040376},{"time":"2021-12-30","value":0.08487243981315128},{"time":"2022-12-30","value":0.12683570101300726},{"time":"2023-12-30","value":-0.003191300750546658}],"Assets":[{"time":"2014-12-30","value":717300000},{"time":"2015-12-30","value":781800000},{"time":"2016-12-30","value":832800000},{"time":"2017-12-30","value":929600000},{"time":"2018-12-30","value":1315200000},{"time":"2019-12-30","value":2141700000},{"time":"2020-12-30","value":2334500000},{"time":"2021-12-30","value":2469000000},{"time":"2022-12-30","value":2736500000},{"time":"2023-12-30","value":2623300000}],"Stockholders Equity":[{"time":"2014-12-30","value":416600000},{"time":"2015-12-30","value":521700000},{"time":"2016-12-30","value":134600000},{"time":"2017-12-30","value":277900000},{"time":"2018-12-30","value":338700000},{"time":"2019-12-30","value":530800000},{"time":"2020-12-30","value":642100000},{"time":"2021-12-30","value":673800000},{"time":"2022-12-30","value":698300000},{"time":"2023-12-30","value":631400000}],"ROE":[{"time":"2014-12-30","value":0.3096495439270283},{"time":"2015-12-30","value":0.15276979106766342},{"time":"2016-12-30","value":0.26151560178306094},{"time":"2017-12-30","value":0.45519971212666427},{"time":"2018-12-30","value":0.49926188367286684},{"time":"2019-12-30","value":0.34608138658628484},{"time":"2020-12-30","value":0.282510512381249},{"time":"2021-12-30","value":0.1752745621846245},{"time":"2022-12-30","value":0.30302162394386367},{"time":"2023-12-30","value":-0.008552423186569529}],"ROA":[{"time":"2014-12-30","value":0.2973651191969887},{"time":"2015-12-30","value":0.2127142491685853},{"time":"2016-12-30","value":0.19644572526416906},{"time":"2017-12-30","value":0.21762048192771086},{"time":"2018-12-30","value":0.20034975669099755},{"time":"2019-12-30","value":0.18532007283933324},{"time":"2020-12-30","value":0.17044334975369457},{"time":"2021-12-30","value":0.17100040502227623},{"time":"2022-12-30","value":0.16539375114196966},{"time":"2023-12-30","value":0.15125986353066748}]}

Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment comprises of pavement technologies, industrial specialties, and engineered polymers. It manufactures products derived from crude tall oil and lignin extracted from the kraft pulping process, as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. This segment's products are used in various applications comprising warm mix paving, pavement preservation, pavement reconstruction and recycling, road striping, oil well service additives, oil production, and downstream applications; and adhesives, agrochemical dispersants, lubricants, printing inks, industrial intermediates and oilfield, coatings, resins, elastomers, bioplastics, and medical devices. The company was founded in 1964 and is headquartered in North Charleston, South Carolina.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Ingevity Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$86.8M	$98.06M	$109.9M	$122.2M	$134.8M	$147.5M	$160.1M	$172.4M	$184.1M	$194.9M	$204.6M	$2.046B
DCF		$85.27M	$83.11M	$80.36M	$77.08M	$73.35M	$69.23M	$64.81M	$60.17M	$55.4M	$50.58M	$505.8M
Value	$1.205B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 17%

Earnings Stability 41%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	8.3%	3.9%	13%	15%	14%	15%	8.5%	13%	-0.32%	-6.8%
ROA	21%	20%	22%	20%	19%	17%	17%	17%	15%	14%
ROE	15%	26%	46%	50%	35%	28%	18%	30%	-0.86%	-20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.82%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.49%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +17.4%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.87%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +26.63%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -7.93%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-3.12	7.01	3.82	4.87	7.96	4.93	6.87	8.68	16.34	18.24
Debt Equity	0.17	3.71	1.67	2.27	2.41	2.08	1.93	2.12	2.47	2.79
MIN
Graham Stability	-	-	100%	100%	100%	100%	66%	100%	-3.2%	-3.2%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 18.24.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.76.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.03.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	9.3%	8.3%	12%	1.4%	1.7%
Net Income	-	-	-	-	1.4%
Stockholders Equity	25%	13%	-0.56%	-9.6%	-1.8%
FCF	4.3%	-9.6%	-29%	-44%	-16%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.34%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.72%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.42%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.27%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.83%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -9.63%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -16.3%.