NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses.
Average dividend payer with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NEU underperformed the US Chemicals industry which returned 4.6% over the past year.
Return vs Market: NEU underperformed the US Market which returned 16.2% over the past year.
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
3 days ago | Simply Wall StNewMarket's (NYSE:NEU) Shareholders Are Down 16% On Their Shares
2 weeks ago | Simply Wall StMarket Cool On NewMarket Corporation's (NYSE:NEU) Earnings
4 weeks ago | Simply Wall StShould You Be Impressed By NewMarket's (NYSE:NEU) Returns on Capital?
Is NewMarket undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NEU ($367.5) is trading above our estimate of fair value ($314.74)
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 (18.1x) compared to the US Chemicals industry average (23.9x).
PE vs Market: NEU is good value based on its PE Ratio (18.1x) compared to the US market (18.3x).
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 (6.3x) compared to the US Chemicals industry average (2x).
How is NewMarket forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- NewMarket is a dividend payer. Have a look at its current yield, dividend levels over time and whether analysts believe the payout ratio will be sustainable moving forward.
- NewMarket competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
How has NewMarket performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEU has high quality earnings.
Growing Profit Margin: NEU's current net profit margins (10.9%) are lower than last year (11.7%).
Past Earnings Growth Analysis
Earnings Trend: NEU's earnings have grown by 0.5% per year over the past 5 years.
Accelerating Growth: NEU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NEU had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Chemicals industry average (-19.5%).
Return on Equity
High ROE: Whilst NEU's Return on Equity (35.54%) is high, this metric is skewed due to their high level of debt.
How is NewMarket's financial position?
Financial Position Analysis
Short Term Liabilities: NEU's short term assets ($790.0M) exceed its short term liabilities ($234.0M).
Long Term Liabilities: NEU's short term assets ($790.0M) do not cover its long term liabilities ($929.9M).
Debt to Equity History and Analysis
Debt Level: NEU's debt to equity ratio (108.7%) is considered high.
Reducing Debt: NEU's debt to equity ratio has increased from 78.2% to 108.7% over the past 5 years.
Debt Coverage: NEU's debt is well covered by operating cash flow (40.7%).
Interest Coverage: NEU's interest payments on its debt are well covered by EBIT (11.5x coverage).
What is NewMarket current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEU's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: NEU's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (4.48%).
Stability and Growth of Payments
Stable Dividend: NEU's dividends per share have been stable in the past 10 years.
Growing Dividend: NEU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.4%), NEU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Teddy Gottwald (59 yo)
Mr. Thomas E. Gottwald, also known as Teddy, has been the Chief Executive Officer and President at NewMarket Corporation since March 3, 2004 and serves as its Chairman of the Board since July 29, 2014. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Teddy's total compensation ($USD3.16M) is below average for companies of similar size in the US market ($USD5.74M).
Compensation vs Earnings: Teddy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|VP & CFO||5.58yrs||US$1.25m||0.034% |
|Executive VP & Chief Administrative Officer||no data||US$1.52m||0.29% |
|President of Afton Chemical Corporation||2.25yrs||US$1.71m||0.038% |
|Principal Accounting Officer & Controller||7.25yrs||no data||0.0090% |
|VP & General Counsel||0.083yr||no data||0.0023% |
|Treasurer||8.83yrs||no data||0.038% |
|Corporate Secretary||0.083yr||no data||no data|
Experienced Management: NEU's management team is seasoned and experienced (5.6 years average tenure).
|Independent Director||5yrs||US$194.81k||0.0086% |
|Independent Lead Director||no data||US$206.90k||0.053% |
|Independent Director||11.58yrs||US$194.81k||0.026% |
|Independent Director||15.92yrs||US$184.81k||0.041% |
|Independent Director||17.25yrs||US$179.81k||0.039% |
Experienced Board: NEU's board of directors are seasoned and experienced ( 13.8 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
NewMarket Corporation's company bio, employee growth, exchange listings and data sources
- Name: NewMarket Corporation
- Ticker: NEU
- Exchange: NYSE
- Founded: 1887
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$4.040b
- Shares outstanding: 10.92m
- Website: https://www.newmarket.com
Number of Employees
- NewMarket Corporation
- 330 South Fourth Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NEU||NYSE (New York Stock Exchange)||Yes||Common Stock Without Par Value||US||USD||Jan 1968|
|UG9||DB (Deutsche Boerse AG)||Yes||Common Stock Without Par Value||DE||EUR||Jan 1968|
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||2020/08/05 23:43|
|End of Day Share Price||2020/08/05 00:00|
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.