Why Ingevity stock is drawing attention now

Ingevity (NGVT) has been catching investor attention after recent share price moves, with the stock closing at $66.17 and showing double digit total returns over the past year and past 3 months.

Recent trading has been strong, with a 30 day share price return of 13.56% and a 90 day share price return of 21.82%. The 1 year total shareholder return of 40.19% contrasts with weaker 3 and 5 year total shareholder returns.

If Ingevity’s move has caught your eye, this can be a good moment to widen the lens and check out fast growing stocks with high insider ownership.

With the shares up strongly over the past year, trading only slightly below the average analyst price target yet still screening as materially below one estimate of intrinsic value, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 4.8% Undervalued

With Ingevity last closing at US$66.17 against a narrative fair value of US$69.50, the story centers on portfolio reshaping and higher margin potential.

Accelerated portfolio repositioning and the advanced-stage divestiture of non-core, lower-margin businesses (Industrial Specialties and CTO refinery) are expected to drive a step-change in margin profile, enabling greater focus and capital allocation toward higher-growth, value-added specialty chemicals, supporting both revenue quality and sustained EBITDA margin improvement.

The valuation hinges on a sharp swing from current losses to sizeable earnings, higher profit margins and a future P/E that sits well below sector norms. Curious which specific revenue path and margin profile are baked into that US$69.50 figure, and how the discount rate ties it all together?

Result: Fair Value of $69.50 (UNDERVALUED)

However, you still need to keep an eye on the APT segment weakness and tariff pressures, as these factors could continue to weigh on demand and margin stability.

Another View on Ingevity's Valuation

The narrative fair value of US$69.50 suggests Ingevity is modestly undervalued, but our DCF model paints a very different picture. On that approach, the shares trade about 60% below an estimated fair value of roughly US$167, which points to a much larger potential gap. Which set of assumptions do you trust more?

Build Your Own Ingevity Narrative

If this view does not quite fit your own thinking, or you would rather work directly with the numbers yourself, you can build a custom narrative in just a few minutes, starting with Do it your way.

A great starting point for your Ingevity research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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If Ingevity is on your radar, do not stop there; use the screener to widen your opportunity set and pressure test where your capital works hardest.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.