NewMarket
Market Cap
US$4.2b
Last Updated
2021/04/11 22:20 UTC
Data Sources
Company Financials
Executive Summary
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. More Details
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has NewMarket's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NEU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NEU's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
NEU
0.03%
US Chemicals
2.1%
US Market
1 Year Return
-4.4%
NEU
55.6%
US Chemicals
56.3%
US Market
Return vs Industry: NEU underperformed the US Chemicals industry which returned 55.6% over the past year.
Return vs Market: NEU underperformed the US Market which returned 56.3% over the past year.
Shareholder returns
| NEU | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 0.03% | 2.1% |
| 30 Day | -1.0% | 1.7% | 2.4% |
| 90 Day | -9.0% | 3.6% | 6.1% |
| 1 Year | -2.5%-4.4% | 59.0%55.6% | 59.1%56.3% |
| 3 Year | -0.6%-5.9% | 43.7%21.8% | 65.7%55.1% |
| 5 Year | 5.1%-3.6% | 95.1%56.2% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is NewMarket's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Returns On Capital At NewMarket (NYSE:NEU) Paint A Concerning Picture1 month ago | Simply Wall St
There's A Lot To Like About NewMarket's (NYSE:NEU) Upcoming US$1.90 Dividend1 month ago | Simply Wall St
These 4 Measures Indicate That NewMarket (NYSE:NEU) Is Using Debt Reasonably WellValuation
Is NewMarket undervalued compared to its fair value and its price relative to the market?
15.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NEU ($386.24) is trading above our estimate of fair value ($240.09)
Significantly Below Fair Value: NEU is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NEU is good value based on its PE Ratio (15.7x) compared to the US Chemicals industry average (28.5x).
PE vs Market: NEU is good value based on its PE Ratio (15.7x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NEU's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NEU is overvalued based on its PB Ratio (5.6x) compared to the US Chemicals industry average (2.7x).
Future Growth
How is NewMarket forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
20.7%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NewMarket has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Past Performance
How has NewMarket performed over the past 5 years?
1.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEU has high quality earnings.
Growing Profit Margin: NEU's current net profit margins (13.4%) are higher than last year (11.6%).
Past Earnings Growth Analysis
Earnings Trend: NEU's earnings have grown by 1.9% per year over the past 5 years.
Accelerating Growth: NEU's earnings growth over the past year (6.3%) exceeds its 5-year average (1.9% per year).
Earnings vs Industry: NEU earnings growth over the past year (6.3%) exceeded the Chemicals industry 3.3%.
Return on Equity
High ROE: NEU's Return on Equity (35.6%) is considered high.
Financial Health
How is NewMarket's financial position?
Financial Position Analysis
Short Term Liabilities: NEU's short term assets ($898.1M) exceed its short term liabilities ($312.5M).
Long Term Liabilities: NEU's short term assets ($898.1M) exceed its long term liabilities ($861.6M).
Debt to Equity History and Analysis
Debt Level: NEU's debt to equity ratio (78.8%) is considered high.
Reducing Debt: NEU's debt to equity ratio has reduced from 131.8% to 78.8% over the past 5 years.
Debt Coverage: NEU's debt is well covered by operating cash flow (47.5%).
Interest Coverage: NEU's interest payments on its debt are well covered by EBIT (12.8x coverage).
Balance Sheet
Dividend
What is NewMarket current dividend yield, its reliability and sustainability?
1.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEU's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: NEU's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: NEU's dividends per share have been stable in the past 10 years.
Growing Dividend: NEU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.8%), NEU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Teddy Gottwald (59 yo)
17.08yrs
Tenure
US$3,149,426
Compensation
Mr. Thomas E. Gottwald, also known as Teddy, has been the Chief Executive Officer and President at NewMarket Corporation since March 3, 2004 and serves as its Chairman of the Board since July 29, 2014. Mr....
CEO Compensation Analysis
Compensation vs Market: Teddy's total compensation ($USD3.15M) is below average for companies of similar size in the US market ($USD5.06M).
Compensation vs Earnings: Teddy's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NEU's management team is seasoned and experienced (6.3 years average tenure).
Board Members
Experienced Board: NEU's board of directors are seasoned and experienced ( 14.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NewMarket Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: NewMarket Corporation
- Ticker: NEU
- Exchange: NYSE
- Founded: 1887
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$4.221b
- Shares outstanding: 10.93m
- Website: https://www.newmarket.com
Number of Employees
Location
- NewMarket Corporation
- 330 South Fourth Street
- Richmond
- Virginia
- 23219-4350
- United States
Listings
Biography
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. The company offers lubricant additives for use in various vehicle and industrial applications, including engi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:20 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.