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Is Ingevity (NGVT) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Ingevity (NGVT - Free Report) . NGVT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.94, while its industry has an average P/E of 16.30. NGVT's Forward P/E has been as high as 16.06 and as low as 9.60, with a median of 13.62, all within the past year.

Another notable valuation metric for NGVT is its P/B ratio of 3.77. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.07. Over the past year, NGVT's P/B has been as high as 5.41 and as low as 3.30, with a median of 4.59.

Finally, investors should note that NGVT has a P/CF ratio of 11.24. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NGVT's current P/CF looks attractive when compared to its industry's average P/CF of 27.06. Over the past 52 weeks, NGVT's P/CF has been as high as 13.51 and as low as 8.91, with a median of 11.48.

These are only a few of the key metrics included in Ingevity's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NGVT looks like an impressive value stock at the moment.


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