NYSE:NEU

Stock Analysis Report

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Executive Summary

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. More Details


Snowflake Analysis

Excellent balance sheet with proven track record 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 +/- 4% a week.

Volatility Over Time: NEU's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.05%

NEU

-1.3%

US Chemicals

0.7%

US Market


1 Year Return

-22.6%

NEU

16.5%

US Chemicals

22.2%

US Market

Return vs Industry: NEU underperformed the US Chemicals industry which returned 18.4% over the past year.

Return vs Market: NEU underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

NEUIndustryMarket
7 Day-0.05%-1.3%0.7%
30 Day3.5%9.8%11.8%
90 Day1.0%9.5%8.6%
1 Year-21.1%-22.6%19.2%16.5%25.0%22.2%
3 Year1.5%-3.8%24.4%1.2%49.4%39.5%
5 Year5.7%-2.9%78.3%34.7%100.2%78.1%

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

Valuation

Is NewMarket undervalued compared to its fair value and its price relative to the market?

16.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEU ($375.32) is trading above our estimate of fair value ($369.16)

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 (16.3x) compared to the US Chemicals industry average (29.5x).

PE vs Market: NEU is good value based on its PE Ratio (16.3x) compared to the US market (19.4x).


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 (5.7x) compared to the US Chemicals industry average (2.3x).


Next Steps

Future Growth

How is NewMarket forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.1%

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.


Next Steps

Past Performance

How has NewMarket performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEU has high quality earnings.

Growing Profit Margin: NEU's current net profit margins (12.6%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: NEU's earnings have grown by 1% 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 (-4.9%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: NEU's Return on Equity (35.1%) is considered high.


Next Steps

Financial Health

How is NewMarket's financial position?


Financial Position Analysis

Short Term Liabilities: NEU's short term assets ($854.4M) exceed its short term liabilities ($308.9M).

Long Term Liabilities: NEU's short term assets ($854.4M) exceed its long term liabilities ($847.7M).


Debt to Equity History and Analysis

Debt Level: NEU's debt to equity ratio (84.1%) is considered high.

Reducing Debt: NEU's debt to equity ratio has reduced from 134.9% to 84.1% over the past 5 years.

Debt Coverage: NEU's debt is well covered by operating cash flow (52.6%).

Interest Coverage: NEU's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NEU's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: NEU's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 (33.1%), 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Teddy Gottwald (59 yo)

16.75yrs

Tenure

US$3,162,200

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 ($USD3.16M) is below average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Teddy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gottwald
Chairman16.75yrsUS$3.16m5.11%
$ 209.5m
Brian Paliotti
VP & CFO5.92yrsUS$1.25m0.034%
$ 1.4m
Bruce Hazelgrove
Executive VP & Chief Administrative Officerno dataUS$1.52m0.29%
$ 11.7m
Regina Harm
President of Afton Chemical Corporation2.58yrsUS$1.71m0.038%
$ 1.5m
William Skrobacz
Principal Accounting Officer & Controller7.58yrsno data0.0090%
$ 370.6k
Bryce Jewett
VP & General Counsel0.42yrno data0.0023%
$ 93.9k
Cameron Warner
Treasurer9.17yrsno data0.038%
$ 1.6m
Anne-Marie Anderson
Corporate Secretary0.42yrno datano data

5.9yrs

Average Tenure

59yo

Average Age

Experienced Management: NEU's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Gottwald
Chairman16.75yrsUS$3.16m5.11%
$ 209.5m
Bruce Gottwald
Director58.92yrsUS$86.55k21.89%
$ 897.3m
H. Harris
Independent Director5.33yrsUS$194.81k0.0086%
$ 354.2k
Phyllis Cothran
Independent Lead Directorno dataUS$206.90k0.053%
$ 2.2m
Mark Gambill
Independent Director11.92yrsUS$194.81k0.026%
$ 1.1m
Patrick Hanley
Independent Director16.25yrsUS$184.81k0.041%
$ 1.7m
James Rogers
Independent Director17.58yrsUS$179.81k0.039%
$ 1.6m

14.1yrs

Average Tenure

73yo

Average Age

Experienced Board: NEU's board of directors are seasoned and experienced ( 14.1 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$4.099b
  • Shares outstanding: 10.92m
  • Website: https://www.newmarket.com

Number of Employees


Location

  • NewMarket Corporation
  • 330 South Fourth Street
  • Richmond
  • Virginia
  • 23219-4350
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEUNYSE (New York Stock Exchange)YesCommon Stock Without Par ValueUSUSDJan 1968
UG9DB (Deutsche Boerse AG)YesCommon Stock Without Par ValueDEEURJan 1968

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:53
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.