(NEU) NewMarket - NYSE
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 7.665m USD | Total Return: 29.6% in 12m
Avg Turnover: 80.5M
EPS Trend: -18.4%
Rev. Trend: 2.5%
Warnings
No concerns identified
Tailwinds
Supp Ema8, Supp Ema20, Idiosyncratic Leader
NewMarket Corporation (NYSE: NEU) is a specialty chemicals company focused on the formulation and manufacture of petroleum additives. Its primary business involves developing lubricant and fuel additives that enhance the performance of engines, transmissions, and industrial machinery. The company operates globally across major regions including North America, Europe, and the Asia Pacific, serving original equipment manufacturers (OEMs), refineries, and industrial clients.
The petroleum additives sector is characterized by high barriers to entry due to the complex chemical formulations and rigorous OEM testing required for product approval. NewMarket’s business model relies on long-term technical partnerships, as its products are essential components for meeting evolving environmental regulations and fuel efficiency standards. Investors can explore detailed valuation metrics and historical performance data for this company on ValueRay.
Beyond its core chemical operations, the company provides contract manufacturing services and manages real estate holdings in Virginia. Founded in 1887, NewMarket maintains a diversified portfolio that supports a wide range of transportation and industrial applications, from passenger vehicles to ocean-going vessels.
- Global demand for high-performance lubricant additives drives core revenue growth
- Fluctuations in raw material costs impact quarterly operating profit margins
- Transition toward electric vehicles poses long-term risk to internal combustion additives
- Expansion in emerging markets offsets maturing demand in North American regions
- Stringent environmental regulations necessitate increased research and development capital expenditure
| Net Income: 410.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -1.05 > 1.0 |
| NWC/Revenue: 24.04% < 20% (prev 26.07%; Δ -2.03% < -1%) |
| CFO/TA 0.16 > 3% & CFO 572.7m > Net Income 410.9m |
| Net Debt (1.03b) to EBITDA (710.8m): 1.44 < 3 |
| Current Ratio: 2.55 > 1.5 & < 3 |
| Outstanding Shares: last quarter (9.40m) vs 12m ago -0.66% < -2% |
| Gross Margin: 31.26% > 18% (prev 32.46%; Δ -1.20% > 0.5%) |
| Asset Turnover: 79.97% > 50% (prev 86.32%; Δ -6.35% > 0%) |
| Interest Coverage Ratio: 15.51 > 6 (EBIT TTM 585.9m / Interest Expense TTM 37.8m) |
| A: 0.18 (Total Current Assets 1.06b - Total Current Liabilities 417.3m) / Total Assets 3.50b |
| B: 0.47 (Retained Earnings 1.63b / Total Assets 3.50b) |
| C: 0.17 (EBIT TTM 585.9m / Avg Total Assets 3.37b) |
| D: 0.98 (Book Value of Equity 1.73b / Total Liabilities 1.77b) |
| Altman-Z'' = 4.93 = AAA |
| DSRI: 0.98 (Receivables 438.4m/463.3m, Revenue 2.69b/2.79b) |
| GMI: 1.04 (GM 32.46% / 31.26%) |
| AQI: 1.12 (AQ_t 0.45 / AQ_t-1 0.40) |
| SGI: 0.97 (Revenue 2.69b / 2.79b) |
| TATA: -0.05 (NI 410.9m - CFO 572.7m) / TA 3.50b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of June 16, 2026, the stock is trading at USD 815.10 with a total of 80,932 shares traded.
Over the past week, the price has changed by +1.87%,
over one month by +19.80%,
over three months by +34.94% and
over the past year by +29.62%.
NewMarket has no consensus analysts rating.
| Analysts Target Price | 450 | -44.8% |
P/E Trailing = 19.0128
P/E Forward = 22.5225
P/S = 2.8453
P/B = 4.4241
P/EG = 5.6368
Revenue TTM = 2.69b USD
EBIT TTM = 585.9m USD
EBITDA TTM = 710.8m USD
Long Term Debt = 939.6m USD (from longTermDebt, last quarter)
Short Term Debt = 16.1m USD (from shortTermDebt, last quarter)
Debt = 1.10b USD (from shortLongTermDebtTotal, last quarter) + Leases 80.2m
Net Debt = 1.03b USD (calculated: Debt 1.10b - CCE 73.2m)
Enterprise Value = 8.69b USD (7.66b + Debt 1.10b - CCE 73.2m)
Interest Coverage Ratio = 15.51 (Ebit TTM 585.9m / Interest Expense TTM 37.8m)
EV/FCF = 17.97x (Enterprise Value 8.69b / FCF TTM 483.7m)
FCF Yield = 5.57% (FCF TTM 483.7m / Enterprise Value 8.69b)
FCF Margin = 17.96% (FCF TTM 483.7m / Revenue TTM 2.69b)
Net Margin = 15.25% (Net Income TTM 410.9m / Revenue TTM 2.69b)
Gross Margin = 31.26% ((Revenue TTM 2.69b - Cost of Revenue TTM 1.85b) / Revenue TTM)
Gross Margin QoQ = 32.98% (prev 30.02%)
Tobins Q-Ratio = 2.48 (Enterprise Value 8.69b / Total Assets 3.50b)
Interest Expense / Debt = 3.43% (Interest Expense 37.8m / Debt 1.10b)
Taxrate = 25.04% (137.2m / 548.1m)
NOPAT = 439.2m (EBIT 585.9m * (1 - 25.04%))
Current Ratio = 2.55 (Total Current Assets 1.06b / Total Current Liabilities 417.3m)
Debt / Equity = 0.63 (Debt 1.10b / totalStockholderEquity, last quarter 1.73b)
Debt / EBITDA = 1.44 (Net Debt 1.03b / EBITDA 710.8m)
Debt / FCF = 2.12 (Net Debt 1.03b / FCF TTM 483.7m)
Total Stockholder Equity = 1.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.20% (Net Income 410.9m / Total Assets 3.50b)
RoE = 24.12% (Net Income TTM 410.9m / Total Stockholder Equity 1.70b)
RoCE = 22.17% (EBIT 585.9m / Capital Employed (Equity 1.70b + L.T.Debt 939.6m))
RoIC = 14.49% (NOPAT 439.2m / Invested Capital 3.03b)
WACC = 7.02% (E(7.66b)/V(8.76b) * Re(7.66%) + D(1.10b)/V(8.76b) * Rd(3.43%) * (1-Tc(0.25)))
Discount Rate = 7.66% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -74.54 | Cagr: -4.57%
[DCF] Terminal Value 75.53% ; FCFF base≈482.3m ; Y1≈487.2m ; Y5≈522.2m
[DCF] Fair Price = 770.3 (EV 8.11b - Net Debt 1.03b = Equity 7.09b / Shares 9.20m; r=8.35% [WACC [floored]]; 5y FCF grow 0.71% → 2.50% )
EPS Correlation: -18.41 | EPS CAGR: -2.37% | SUE: N/A | # QB: 0
Revenue Correlation: 2.54 | Revenue CAGR: 0.04% | SUE: N/A | # QB: 0