Ingevity Corporation
NGVT
announced the expansion of its activated carbon production capacity after significant debottlenecking and equipment upgrades. The expansion was verified and completed in late December at the company’s plant in Zhuhai, China.
The upgrade in plant increased Ingevity’s capacity by additional 15-20%. This will help the company meet global demand for its premium, high-capacity pelletized carbon products, used mainly in gasoline vapour emissions control systems in cars, trucks, motorcycles and boats.
The Zhuhai facility has been operating since 2015 and includes activated carbon production and advanced automotive applications laboratory. In the past five years, the company improved the activation process at the plant, identified bottlenecks and executed a plan to expand the capacity of its world-leading automotive materials.
Shares of Ingevity have gained 6.8% in the past year compared with 17.8% rise of the
industry
.
The company, in its fourth-quarter earnings call, stated that it expects sales between $1.25 billion and $1.30 billion for 2021. It also anticipates adjusted EBITDA in the range of $400-$420 million for the year.
Ingevity also sees revenues and adjusted EBITDA to be flat to up slightly in the Performance Chemicals unit for 2021. Moreover, the Performance Materials segment is projected to deliver double-digit revenue growth.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart
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Ingevity Corporation Quote
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Fortescue Metals Group Limited
FSUGY
,
BHP Group
BHP
and
Impala Platinum Holdings Limited
IMPUY
.
Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 149.6% in a year. It currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP has an expected earnings growth rate of 62.3% for the current fiscal. The company’s shares have gained around 46.4% in the past year. It currently holds a Zacks Rank #2.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 42% in the past year. It currently sports a Zacks Rank #1.
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