NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses.
Solid track record average dividend payer.
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 exceeded the US Chemicals industry which returned -7% over the past year.
Return vs Market: NEU underperformed the US Market which returned 17.9% 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
2 weeks ago | Simply Wall StAre You An Income Investor? Don't Miss Out On NewMarket Corporation (NYSE:NEU)
4 weeks ago | Simply Wall StDo You Like NewMarket Corporation (NYSE:NEU) At This P/E Ratio?
1 month ago | Simply Wall StHere's Why NewMarket (NYSE:NEU) Can Manage Its Debt Responsibly
Is NewMarket undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEU ($424.34) is trading below our estimate of fair value ($684.94)
Significantly Below Fair Value: NEU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEU is good value based on its PE Ratio (18.7x) compared to the Chemicals industry average (22.6x).
PE vs Market: NEU is poor value based on its PE Ratio (18.7x) compared to the US market (18.2x).
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 (7x) compared to the US Chemicals industry average (2.1x).
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.
- Examine whether NewMarket is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- 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 (11.6%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: NEU's earnings have declined by -0.5% per year over the past 5 years.
Accelerating Growth: NEU's earnings growth over the past year (8.4%) exceeds its 5-year average (-0.5% per year).
Earnings vs Industry: NEU earnings growth over the past year (8.4%) exceeded the Chemicals industry -15.9%.
Return on Equity
High ROE: NEU's Return on Equity (37.2%) is considered high.
Return on Assets
Return on Capital Employed
How is NewMarket's financial position?
Financial Position Analysis
Short Term Liabilities: NEU's short term assets ($879.4M) exceed its short term liabilities ($308.9M).
Long Term Liabilities: NEU's short term assets ($879.4M) do not cover its long term liabilities ($893.1M).
Debt to Equity History and Analysis
Debt Level: NEU's debt to equity ratio (94.1%) is considered high.
Reducing Debt: NEU's debt to equity ratio has increased from 91.3% to 94.1% over the past 5 years.
Debt Coverage: NEU's debt is well covered by operating cash flow (52.4%).
Interest Coverage: NEU's interest payments on its debt are well covered by EBIT (12.3x coverage).
Inventory Level: NEU has a high level of physical assets or inventory.
Debt Coverage by Assets: NEU's debt is covered by short term assets (assets are 1.4x debt).
What is NewMarket's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEU's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: NEU's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: NEU's dividends per share have been stable in the past 10 years.
Growing Dividend: NEU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.1%), NEU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Teddy Gottwald (58yo)
Mr. Thomas E. Gottwald, also known as Teddy, has been the Chief Executive Officer and President at NewMarket Corporation since March 3, 2004 and serves as its Chairman of the Board since July 29, 2014. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Teddy's total compensation ($USD2.10M) is below average for companies of similar size in the US market ($USD4.87M).
Compensation vs Earnings: Teddy's compensation has been consistent with company performance over the past year.
|VP & CFO||5.1yrs||US$1.18m||0.014% $678.4k|
|Executive VP & Chief Administrative Officer||0yrs||US$1.23m||0.27% $12.6m|
|VP, General Counsel & Secretary||4.1yrs||US$1.50m||0.11% $5.4m|
|President of Afton Chemical Corporation||1.8yrs||US$1.36m||0.019% $879.3k|
|Principal Accounting Officer & Controller||6.8yrs||no data||0.0088% $418.7k|
|Treasurer||8.3yrs||no data||0.038% $1.8m|
Experienced Management: NEU's management team is seasoned and experienced (5.9 years average tenure).
|Independent Director||4.5yrs||US$194.80k||0.0064% $305.7k|
|Lead Director||0yrs||US$199.80k||0.050% $2.4m|
|Independent Director||11.1yrs||US$194.80k||0.024% $1.1m|
|Independent Director||15.4yrs||US$184.80k||0.038% $1.8m|
|Independent Director||16.8yrs||US$179.80k||0.036% $1.7m|
Experienced Board: NEU's board of directors are seasoned and experienced ( 13.3 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$4.748b
- Shares outstanding: 11.19m
- 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 engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives. It also provides engine oil additives comprising driveline additives for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additive comprising products for industrial applications, which include hydraulic fluids, grease, and industrial gear fluids, as well as industrial specialty applications, including turbine oils. In addition, the company offers 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. Additionally, it engages in the antiknock compounds business, as well as contracted manufacturing and services business. The company has operations in the United States, Europe, the Asia Pacific, India, Latin America, Canada, Africa, and the Middle East. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/24 01:05|
|End of Day Share Price||2020/02/21 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.