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NewMarket

NYSE:NEU
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEU
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. The last earnings update was 88 days ago. More info.


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NEU Share Price and Events
7 Day Returns
0.5%
NYSE:NEU
-0.2%
US Chemicals
-1.2%
US Market
1 Year Returns
4.7%
NYSE:NEU
-10.5%
US Chemicals
3.3%
US Market
NEU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NewMarket (NEU) 0.5% 6% -3.8% 4.7% -0.4% 5.8%
US Chemicals -0.2% 0.4% -4.2% -10.5% 16% 5.6%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • NEU outperformed the Chemicals industry which returned -10.5% over the past year.
  • NEU outperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
NEU
Industry
5yr Volatility vs Market
Related Companies

Value

 Is NewMarket undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NewMarket to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NewMarket.

NYSE:NEU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NEU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.888 (1 + (1- 21%) (18.22%))
1.011
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.011 * 5.96%)
8.75%

Discounted Cash Flow Calculation for NYSE:NEU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NewMarket is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:NEU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.75%)
2020 254.00 Analyst x1 233.56
2021 325.61 Est @ 28.19% 275.30
2022 392.53 Est @ 20.55% 305.18
2023 452.22 Est @ 15.21% 323.29
2024 504.06 Est @ 11.46% 331.34
2025 548.63 Est @ 8.84% 331.62
2026 587.09 Est @ 7.01% 326.30
2027 620.70 Est @ 5.73% 317.22
2028 650.66 Est @ 4.83% 305.77
2029 677.98 Est @ 4.2% 292.96
Present value of next 10 years cash flows $3,042.55
NYSE:NEU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $677.98 × (1 + 2.73%) ÷ (8.75% – 2.73%)
$11,564.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,564.37 ÷ (1 + 8.75%)10
$4,997.15
NYSE:NEU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,042.55 + $4,997.15
$8,039.70
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,039.70 / 11.19
$718.59
NYSE:NEU Discount to Share Price
Calculation Result
Value per share (USD) From above. $718.59
Current discount Discount to share price of $416.99
= -1 x ($416.99 - $718.59) / $718.59
42%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NewMarket is available for.
Intrinsic value
42%
Share price is $416.99 vs Future cash flow value of $718.59
Current Discount Checks
For NewMarket to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NewMarket's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NewMarket's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NewMarket's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NewMarket's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NEU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $20.76
NYSE:NEU Share Price ** NYSE (2019-07-22) in USD $416.99
United States of America Chemicals Industry PE Ratio Median Figure of 67 Publicly-Listed Chemicals Companies 18.82x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NewMarket.

NYSE:NEU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NEU Share Price ÷ EPS (both in USD)

= 416.99 ÷ 20.76

20.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NewMarket is overvalued based on earnings compared to the US Chemicals industry average.
  • NewMarket is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does NewMarket's expected growth come at a high price?
Raw Data
NYSE:NEU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
5.7%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:NEU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.09x ÷ 5.7%

3.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NewMarket is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NewMarket's assets?
Raw Data
NYSE:NEU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $48.10
NYSE:NEU Share Price * NYSE (2019-07-22) in USD $416.99
United States of America Chemicals Industry PB Ratio Median Figure of 93 Publicly-Listed Chemicals Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NYSE:NEU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NEU Share Price ÷ Book Value per Share (both in USD)

= 416.99 ÷ 48.10

8.67x

* Primary Listing of NewMarket.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NewMarket is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess NewMarket's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. NewMarket has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NewMarket expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NewMarket expected to grow at an attractive rate?
  • NewMarket's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NewMarket's earnings growth is positive but not above the United States of America market average.
  • NewMarket's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NEU Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NEU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 5.7%
NYSE:NEU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 2.8%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NEU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NEU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 373
2020-12-31 2,344 348 260 1
2019-12-31 2,243 200 240 1
NYSE:NEU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,237 207 236
2018-12-31 2,290 198 234
2018-09-30 2,311 166 176
2018-06-30 2,297 216 177
2018-03-31 2,245 219 187
2017-12-31 2,198 243 190
2017-09-30 2,140 272 232
2017-06-30 2,108 258 243
2017-03-31 2,082 313 245
2016-12-31 2,049 353 243
2016-09-30 2,027 339 251
2016-06-30 2,052 333 242

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NewMarket's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • NewMarket's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NEU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from NewMarket Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NEU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 23.46 23.46 23.46 1.00
2019-12-31 21.41 21.41 21.41 1.00
NYSE:NEU Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 20.76
2018-12-31 20.34
2018-09-30 15.07
2018-06-30 15.05
2018-03-31 15.82
2017-12-31 16.08
2017-09-30 19.59
2017-06-30 20.57
2017-03-31 20.72
2016-12-31 20.54
2016-09-30 21.18
2016-06-30 20.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NewMarket will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NewMarket's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NewMarket has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NewMarket performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NewMarket's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NewMarket's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • NewMarket's 1-year earnings growth exceeds its 5-year average (26.3% vs -3.1%)
  • NewMarket's earnings growth has exceeded the US Chemicals industry average in the past year (26.3% vs 5.4%).
Earnings and Revenue History
NewMarket's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NewMarket Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NEU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,237.05 235.94 128.37 139.22
2018-12-31 2,289.68 234.26 133.51 140.29
2018-09-30 2,311.35 175.68 158.53 134.52
2018-06-30 2,296.60 176.97 168.12 136.07
2018-03-31 2,244.83 186.81 152.81 142.17
2017-12-31 2,198.40 190.15 153.62 146.00
2017-09-30 2,140.05 231.67 153.91 152.00
2017-06-30 2,107.72 243.32 159.64 152.17
2017-03-31 2,082.34 244.97 157.24 155.87
2016-12-31 2,049.45 242.96 153.70 160.79
2016-09-30 2,027.45 251.19 163.50 156.25
2016-06-30 2,052.29 241.77 162.95 158.39
2016-03-31 2,091.19 236.12 163.21 157.79
2015-12-31 2,140.83 238.12 164.08 158.25
2015-09-30 2,210.09 236.23 162.45 154.46
2015-06-30 2,258.82 231.18 165.52 151.41
2015-03-31 2,318.55 239.24 165.78 146.66
2014-12-31 2,335.41 232.86 163.52 139.18
2014-09-30 2,342.90 234.76 164.97 136.63
2014-06-30 2,333.69 234.88 164.48 136.70
2014-03-31 2,297.03 232.56 163.49 137.76
2013-12-31 2,280.36 242.01 164.88 136.57
2013-09-30 2,237.31 240.09 161.25 134.59
2013-06-30 2,208.04 246.97 157.46 128.93
2013-03-31 2,211.81 237.69 158.24 120.97
2012-12-31 2,211.88 236.96 154.21 117.85
2012-09-30 2,204.11 218.73 154.49 115.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst NewMarket made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • NewMarket used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • NewMarket's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NewMarket's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NewMarket has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NewMarket's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NewMarket's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NewMarket is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NewMarket's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of NewMarket's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NewMarket Company Filings, last reported 3 months ago.

NYSE:NEU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 538.20 782.02 78.25
2018-12-31 489.91 765.81 73.04
2018-09-30 564.07 813.15 147.94
2018-06-30 552.48 754.38 109.79
2018-03-31 654.79 619.24 72.83
2017-12-31 601.65 597.09 84.17
2017-09-30 628.45 606.95 105.00
2017-06-30 583.71 623.22 278.04
2017-03-31 531.02 596.65 251.24
2016-12-31 483.25 502.51 192.15
2016-09-30 476.96 526.36 187.91
2016-06-30 432.21 516.21 158.14
2016-03-31 391.15 536.07 122.26
2015-12-31 387.56 510.41 93.42
2015-09-30 376.18 507.57 110.33
2015-06-30 496.39 383.39 126.17
2015-03-31 442.89 396.84 119.24
2014-12-31 421.04 384.67 103.00
2014-09-30 494.52 405.11 141.54
2014-06-30 513.50 376.73 113.64
2014-03-31 536.49 376.38 146.66
2013-12-31 572.45 368.41 238.70
2013-09-30 539.09 384.91 247.27
2013-06-30 466.45 405.49 73.55
2013-03-31 418.57 465.31 64.01
2012-12-31 402.21 457.17 89.13
2012-09-30 717.29 183.83 79.71
  • NewMarket's level of debt (147.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (70.2% vs 147.3% today).
  • Debt is well covered by operating cash flow (26.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).
X
Financial health checks
We assess NewMarket's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NewMarket has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is NewMarket's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.68%
Current annual income from NewMarket dividends. Estimated to be 1.68% next year.
If you bought $2,000 of NewMarket shares you are expected to receive $34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NewMarket's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • NewMarket's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NEU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 56 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NEU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 7.00 1.00
2022-12-31 7.00 1.00
2021-12-31 7.00 1.00
2020-12-31 7.00 1.00
2019-12-31 7.00 1.00
NYSE:NEU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 7.000 1.717
2019-02-28 7.000 1.614
2018-10-25 7.000 1.723
2018-08-09 7.000 1.787
2018-04-26 7.000 1.787
2018-02-22 7.000 1.703
2017-10-26 7.000 1.759
2017-08-03 7.000 1.646
2017-04-27 7.000 1.512
2017-02-23 7.000 1.563
2016-10-27 6.400 1.514
2016-08-11 6.400 1.523
2016-04-28 6.400 1.557
2016-02-25 6.400 1.641
2015-10-21 6.400 1.706
2015-08-06 5.600 1.464
2015-04-23 5.600 1.247
2015-02-26 5.600 1.197
2014-10-23 5.600 1.361
2014-07-29 4.400 1.126
2014-04-24 4.400 1.142
2014-02-27 4.400 1.143
2013-10-24 4.400 1.338
2013-07-18 3.600 1.273
2013-04-25 3.600 1.320
2013-02-28 3.600 1.375
2012-10-25 3.000 1.147
2012-07-17 3.000 1.236
2012-04-26 3.000 1.405
2012-02-23 3.000 1.610
2011-10-27 3.000 1.530
2011-07-18 2.400 1.494
2011-04-20 2.400 1.410
2011-02-17 1.760 1.229
2010-10-18 1.760 1.404
2010-07-21 1.500 1.398
2010-04-22 1.500 1.502
2010-02-18 1.500 1.469
2009-10-22 1.500 1.424
2009-07-30 1.000 1.160
2009-04-23 1.000 1.440
2009-02-19 0.800 2.035
2008-10-23 0.800 2.348
2008-07-31 0.800 1.468

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NewMarket's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NewMarket's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NewMarket afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NewMarket has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NewMarket's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Teddy Gottwald
COMPENSATION $2,102,180
AGE 58
TENURE AS CEO 15.3 years
CEO Bio

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. Gottwald served as the Chief Executive Officer and President of Ethyl Corporation from June 1, 2001 to June 30, 2004. Mr. Gottwald served as the Chief Operating Officer of Ethyl Corp. from March 1, 1994 to May 31, 2001. Mr. Gottwald has been a Director of Ethyl Corp. since 1994. Mr. Gottwald has been a Director of NewMarket Corporation since 1994. He served as a Director of Virginia Commonwealth University Health System.

CEO Compensation
  • Teddy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Teddy's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NewMarket management team in years:

5.3
Average Tenure
58
Average Age
  • The average tenure for the NewMarket management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Teddy Gottwald

TITLE
Chairman
COMPENSATION
$2M
AGE
58
TENURE
15.3 yrs

Brian Paliotti

TITLE
VP & CFO
COMPENSATION
$1M
AGE
42
TENURE
4.5 yrs

Bruce Hazelgrove

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$1M
AGE
58

M. West

TITLE
VP, General Counsel & Secretary
COMPENSATION
$1M
AGE
65
TENURE
3.5 yrs

Regina Harm

TITLE
President of Afton Chemical Corporation
COMPENSATION
$1M
AGE
54
TENURE
1.2 yrs

William Skrobacz

TITLE
Principal Accounting Officer & Controller
AGE
59
TENURE
6.2 yrs

Cameron Warner

TITLE
Treasurer
AGE
60
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure and age of the NewMarket board of directors in years:

12.7
Average Tenure
72
Average Age
  • The average tenure for the NewMarket board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Bruce Gottwald

TITLE
Director
COMPENSATION
$85K
AGE
85
TENURE
57.5 yrs

Teddy Gottwald

TITLE
Chairman
COMPENSATION
$2M
AGE
58
TENURE
5 yrs

Pat Hanley

TITLE
Independent Director
COMPENSATION
$185K
AGE
74
TENURE
14.8 yrs

Mark Gambill

TITLE
Independent Director
COMPENSATION
$195K
AGE
68
TENURE
10.5 yrs

H. Harris

TITLE
Independent Director
COMPENSATION
$195K
AGE
58
TENURE
3.9 yrs

Phyllis Cothran

TITLE
Lead Director
COMPENSATION
$200K
AGE
72

Jim Rogers

TITLE
Independent Director
COMPENSATION
$180K
AGE
73
TENURE
16.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Feb 19 Sell Thomas Gottwald Individual 21. Feb 19 22. Feb 19 -11,000 $441.30 $-4,816,246
14. Feb 19 Sell James Rogers Individual 12. Feb 19 12. Feb 19 -500 $433.97 $-216,984
X
Management checks
We assess NewMarket's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NewMarket has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Buying NewMarket Corporation (NYSE:NEU) Shares

So before you buy or sell NewMarket Corporation (NYSE:NEU), you may well want to know whether insiders have been buying or selling. … NYSE:NEU Recent Insider Trading, July 19th 2019 Insider Ownership of NewMarket Many investors like to check how much of a company is owned by insiders. … It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of NewMarket insider transactions don't fill us with confidence.

Simply Wall St -

Has NewMarket Corporation (NYSE:NEU) Improved Earnings Growth In Recent Times?

Below, I will assess NewMarket Corporation's (NYSE:NEU) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Let's see whether it is only because of industry tailwinds, or if NewMarket has experienced some company-specific growth. … I suggest you continue to research NewMarket to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for NEU’s future growth?

Simply Wall St -

Is NewMarket Corporation (NYSE:NEU) A Financially Sound Company?

On top of this, NEU has generated US$207m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 24%, signalling that NEU’s current level of operating cash is high enough to cover debt. … We can test if NEU’s debt levels are sustainable by measuring interest payments against earnings of a company. … Next Steps: NEU’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Is NewMarket Corporation’s (NYSE:NEU) 20% ROCE Any Good?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for NewMarket: 0.20 = US$314m ÷ (US$1.8b - US$260m) (Based on the trailing twelve months to March 2019.) So, NewMarket has an ROCE of 20%. … NewMarket's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Is NewMarket Corporation (NYSE:NEU) An Attractive Dividend Stock?

Dividend paying stocks like NewMarket Corporation (NYSE:NEU) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends.. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Here's What NewMarket Corporation's (NYSE:NEU) P/E Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to NewMarket Corporation's (NYSE:NEU), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Does NewMarket's (NYSE:NEU) Share Price Gain of 13% Match Its Business Performance?

Better yet, you'd like to see the share price move up more than the market average. … Unfortunately for shareholders, while the NewMarket Corporation (NYSE:NEU) share price is up 13% in the last five years, that's less than the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Simply Wall St -

Who Has Been Selling NewMarket Corporation (NYSE:NEU) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in NewMarket Corporation (NYSE:NEU). … That means that an insider was selling shares at around the current price of US$432. … All up, insiders sold more shares in NewMarket than they bought, over the last year

Simply Wall St -

4 Days Left Before NewMarket Corporation (NYSE:NEU) Will Be Trading Ex-Dividend

Investors who want to cash in on NewMarket Corporation's (NYSE:NEU) upcoming dividend of US$1.75 per share have only 4 days left to buy the shares before its ex-dividend date, 14 March 2019, in time for dividends payable on the 01 April 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine NewMarket's latest financial data to analyse its dividend characteristics. … Based on future earnings growth, will it be able to continue to payout dividend at the current rate

Simply Wall St -

Should You Worry About NewMarket Corporation's (NYSE:NEU) CEO Pay Cheque?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for NewMarket … How Does Teddy Gottwald's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Company Info

Description

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 engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, metalworking fluids, and other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives. It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers. The company has operations in the United States, Europe, the Asia Pacific, India, Latin America, Canada, and the Middle East. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

Details
Name: NewMarket Corporation
NEU
Exchange: NYSE
Founded: 1887
$4,665,336,660
11,188,126
Website: http://www.newmarket.com
Address: NewMarket Corporation
330 South Fourth Street,
Richmond,
Virginia, 23219,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NEU Common Stock Without Par Value New York Stock Exchange US USD 02. Jan 1968
DB UG9 Common Stock Without Par Value Deutsche Boerse AG DE EUR 02. Jan 1968
Number of employees
Current staff
Staff numbers
2,089
NewMarket employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:55
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/04/26
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.