RS Investment Management (Trades, Portfolio) is a privately held San Francisco-based investment firm that focuses on critical thinking, deep research and long-term value investing. During the second quarter, the investment firm added 1,232,732 shares of Ingevity Corp. (NGVT, Financial) at an average price of $30.20. Since the addition, the company’s market price has soared by an estimated 57%.
Ingevity has a market cap of $1.99 billion, a price-earnings (P/E) ratio of 84.45, an enterprise value of $2.51 billion, a price-book (P/B) ratio of 15.29, a current ratio of 2.79 and a quick ratio of 1.55.
Ingevity is a global specialty chemicals producer that is headquartered in North Charleston, South Carolina. The company produces specialty chemicals and high-performance carbon materials and technologies to enable its customers to solve complex problems. These chemicals are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions. Ingevity operates eight manufacturing facilities in the United States, Brazil and China, and it currently employs approximately 1500 people across the globe.
Earlier this year, Ingevity began its operations as a standalone, publicly traded company, following a tax-free spinoff from WestRock Company (WRK, Financial). WestRock is a developer of papermaking, packaging design and retail solutions. After the spinoff was completed, Ingevity began trading on the New York Stock Exchange under the symbol NVGT. The company’s market price has gained an estimated 84% since it became an independent company.
GuruFocus gives Ingevity a 5 of 10 financial strength rating, with a cash to debt ratio of 0.10, ranking it beneath 89% of the 1082 companies in the global specialty chemicals industry. The company also has a 4 of 10 profitability and growth rating with a ROE of 20.87, a ROC (Joel Greenblatt (Trades, Portfolio) of 23.71% and an operating margin of 16.61%, ranking it above 85% of the companies in the industry.
Below is a Peter Lynch chart that suggests Ingevity is trading above its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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