Assessing Ingevity: Insights From 5 Financial Analysts

In the preceding three months, 5 analysts have released ratings for Ingevity NGVT, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $55.2, a high estimate of $62.00, and a low estimate of $45.00. Observing a 7.81% increase, the current average has risen from the previous average price target of $51.20.

Decoding Analyst Ratings: A Detailed Look

The standing of Ingevity among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ingevity. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ingevity compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Ingevity's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ingevity's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Unveiling the Story Behind Ingevity

Ingevity Corp is a chemical manufacturer based in the United States. It conducts its operations through three segments, namely Performance Chemicals, Advanced Polymer Technologies, and Performance Materials. The bulk of its revenue is generated by the Performance Chemicals segment which deals with the manufacture and sale of specialty chemicals that find their use in a range of processes such as asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, and publication inks. The Performance Materials segment, on the other hand, focuses on automotive carbon products used in automobiles. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers. The Company generates the majority of its revenue from North America.

Key Indicators: Ingevity's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Ingevity faced challenges, resulting in a decline of approximately -13.37% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ingevity's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -16.47%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.34%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Ingevity's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.16%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Ingevity's debt-to-equity ratio stands notably higher than the industry average, reaching 2.74. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.