We believe that Ingevity Corporation (NGVT - Free Report) is a solid choice for investors seeking exposure in the chemical space. The company is well-positioned to leverage benefits from products offered under its Performance Materials and Performance Chemicals segments.
The stock was upgraded to a Zacks Rank #1 (Strong Buy) on Feb 23. It currently has a market capitalization of approximately $3.4 billion.
Ingevity has reported better-than-expected earnings in the last four quarters, pulling off an average positive earnings surprise of 13.30%. Notably, the company’s shares have rallied 6.5% in the last three years, outperforming 3.3% decline of the industry.
Why the Upgrade?
Ingevity’s bottom-line results for fourth-quarter 2017 surpassed the Zacks Consensus Estimate by 25% and increased 32.4% on a year-over-year basis. Net sales were up 8.8% on the back of 17.7% sales growth in Performance Materials segment and 3.7% increase in Performance Chemicals segment’s sales.
For 2018, Ingevity anticipates that its Performance Chemicals segment will benefit from oilfield recovery, development in pavement technologies and synergistic benefits — in the form of lower transportation, logistics costs and increase in manufacturing efficiency — from pine chemicals operations acquired from Georgia-Pacific. Also, the company believes that stricter norms, related to the emission of gasoline vapor, will boost demand for products offered by Performance Materials segment.
The company anticipates revenues in 2018 to come within $1.07-$1.13 billion range, representing year-over-year growth of 13% at mid-point. Its earnings before interest, taxes, depreciation and amortization (EBITDA) are predicted to grow roughly 22% (at mid-point) to $285-$305 million range.
Ingevity aims at generating revenues of approximately $1.5 billion by 2022 while predicting adjusted EBITDA to be roughly $500 million. Its Performance Materials segment will benefit from strong demand for carbon technologies in the automotive and process purification industries. Capital expenditures are about to improve global networks and investments in patenting products are priorities for the company. By 2022, it targets to double the segment’s revenues generated in 2015. For the Performance Chemical, the company believes that growth in pavement technologies, oilfield technologies and industrial specialties will be prime growth drivers.
Earnings estimates for 2018 have been revised upward by two analysts, while that for 2019 have been raised by one in the last 30 days. Currently, the Zacks Consensus Estimate stands at $3.16 for 2018 and $3.99 for 2019, representing 10.9% and 16.3% increase over their respective estimates 30 days ago.
Ingevity Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We believe that Ingevity Corporation (NGVT - Free Report) is a solid choice for investors seeking exposure in the chemical space. The company is well-positioned to leverage benefits from products offered under its Performance Materials and Performance Chemicals segments.
The stock was upgraded to a Zacks Rank #1 (Strong Buy) on Feb 23. It currently has a market capitalization of approximately $3.4 billion.
Ingevity has reported better-than-expected earnings in the last four quarters, pulling off an average positive earnings surprise of 13.30%. Notably, the company’s shares have rallied 6.5% in the last three years, outperforming 3.3% decline of the industry.
Why the Upgrade?
Ingevity’s bottom-line results for fourth-quarter 2017 surpassed the Zacks Consensus Estimate by 25% and increased 32.4% on a year-over-year basis. Net sales were up 8.8% on the back of 17.7% sales growth in Performance Materials segment and 3.7% increase in Performance Chemicals segment’s sales.
For 2018, Ingevity anticipates that its Performance Chemicals segment will benefit from oilfield recovery, development in pavement technologies and synergistic benefits — in the form of lower transportation, logistics costs and increase in manufacturing efficiency — from pine chemicals operations acquired from Georgia-Pacific. Also, the company believes that stricter norms, related to the emission of gasoline vapor, will boost demand for products offered by Performance Materials segment.
The company anticipates revenues in 2018 to come within $1.07-$1.13 billion range, representing year-over-year growth of 13% at mid-point. Its earnings before interest, taxes, depreciation and amortization (EBITDA) are predicted to grow roughly 22% (at mid-point) to $285-$305 million range.
Ingevity aims at generating revenues of approximately $1.5 billion by 2022 while predicting adjusted EBITDA to be roughly $500 million. Its Performance Materials segment will benefit from strong demand for carbon technologies in the automotive and process purification industries. Capital expenditures are about to improve global networks and investments in patenting products are priorities for the company. By 2022, it targets to double the segment’s revenues generated in 2015. For the Performance Chemical, the company believes that growth in pavement technologies, oilfield technologies and industrial specialties will be prime growth drivers.
Earnings estimates for 2018 have been revised upward by two analysts, while that for 2019 have been raised by one in the last 30 days. Currently, the Zacks Consensus Estimate stands at $3.16 for 2018 and $3.99 for 2019, representing 10.9% and 16.3% increase over their respective estimates 30 days ago.
Ingevity Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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