NEWMARKET CORP (NEU) Stock Fundamental Analysis
USA - NYSE:NEU - US6515871076 - Common Stock
767.9 USD
+20 (+2.67%)
768.9 USD
+1 (+0.13%)
Overall NEU gets a fundamental rating of 6 out of 10. We evaluated NEU against 82 industry peers in the Chemicals industry. NEU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NEU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NEU was profitable.
NEU had a positive operating cash flow in the past year.
In the past 5 years NEU has always been profitable.
NEU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NEU (14.98%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 29.69%, NEU belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
NEU's Return On Invested Capital of 17.20% is amongst the best of the industry. NEU outperforms 98.78% of its industry peers.
NEU had an Average Return On Invested Capital over the past 3 years of 16.97%. This is significantly above the industry average of 6.28%.
The 3 year average ROIC (16.97%) for NEU is below the current ROIC(17.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.98% | ||
| ROE | 29.69% | ||
| ROIC | 17.2% |
ROA(3y)14.36%
ROA(5y)12.9%
ROE(3y)34.69%
ROE(5y)32.92%
ROIC(3y)16.97%
ROIC(5y)15.47%
1.3 Margins
With an excellent Profit Margin value of 17.22%, NEU belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Profit Margin of NEU has grown nicely.
NEU's Operating Margin of 21.78% is amongst the best of the industry. NEU outperforms 90.24% of its industry peers.
NEU's Operating Margin has improved in the last couple of years.
NEU has a Gross Margin of 32.69%. This is in the better half of the industry: NEU outperforms 62.20% of its industry peers.
NEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.78% | ||
| PM (TTM) | 17.22% | ||
| GM | 32.69% |
OM growth 3Y24.62%
OM growth 5Y6.58%
PM growth 3Y26.95%
PM growth 5Y7.37%
GM growth 3Y11.02%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NEU is creating value.
NEU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEU has less shares outstanding
The debt/assets ratio for NEU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.16 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU has a Altman-Z score of 5.16. This is amongst the best in the industry. NEU outperforms 95.12% of its industry peers.
NEU has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
NEU has a better Debt to FCF ratio (1.60) than 93.90% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that NEU is somewhat dependend on debt financing.
NEU has a Debt to Equity ratio of 0.52. This is in the better half of the industry: NEU outperforms 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 5.16 |
ROIC/WACC2.01
WACC8.55%
2.3 Liquidity
NEU has a Current Ratio of 2.66. This indicates that NEU is financially healthy and has no problem in meeting its short term obligations.
NEU's Current ratio of 2.66 is fine compared to the rest of the industry. NEU outperforms 74.39% of its industry peers.
NEU has a Quick Ratio of 1.43. This is a normal value and indicates that NEU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.43, NEU is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
NEU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.11%.
The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
Looking at the last year, NEU shows a small growth in Revenue. The Revenue has grown by 3.27% in the last year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)5.11%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%-22.63%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%-4.78%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.22 indicates a correct valuation of NEU.
Based on the Price/Earnings ratio, NEU is valued a bit cheaper than 63.41% of the companies in the same industry.
NEU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NEU.
80.49% of the companies in the same industry are more expensive than NEU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.75 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
NEU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.56%.
Compared to an average industry Dividend Yield of 4.00, NEU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, NEU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of NEU is nicely growing with an annual growth rate of 6.59%!
NEU has paid a dividend for at least 10 years, which is a reliable track record.
NEU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.59%
Div Incr Years6
Div Non Decr Years18
5.3 Sustainability
NEU pays out 20.86% of its income as dividend. This is a sustainable payout ratio.
NEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.86%
EPS Next 2YN/A
EPS Next 3YN/A
767.9
+20 (+2.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.63%
Inst Owner Change-1.44%
Ins Owners6.64%
Ins Owner Change-2.71%
Market Cap7.22B
Revenue(TTM)2.79B
Net Income(TTM)478.47M
Analysts45
Price TargetN/A
Short Float %2.14%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend10.03
Dividend Growth(5Y)6.59%
DP20.86%
Div Incr Years6
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | N/A | ||
| P/S | 2.6 | ||
| P/FCF | 13.75 | ||
| P/OCF | 12.38 | ||
| P/B | 4.48 | ||
| P/tB | 8.26 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)47.33
EY6.16%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)55.86
FCFY7.27%
OCF(TTM)62.04
OCFY8.08%
SpS295.64
BVpS171.46
TBVpS92.96
PEG (NY)N/A
PEG (5Y)1
Graham Number427.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.98% | ||
| ROE | 29.69% | ||
| ROCE | 21.68% | ||
| ROIC | 17.2% | ||
| ROICexc | 17.64% | ||
| ROICexgc | 24.2% | ||
| OM | 21.78% | ||
| PM (TTM) | 17.22% | ||
| GM | 32.69% | ||
| FCFM | 18.89% |
ROA(3y)14.36%
ROA(5y)12.9%
ROE(3y)34.69%
ROE(5y)32.92%
ROIC(3y)16.97%
ROIC(5y)15.47%
ROICexc(3y)17.71%
ROICexc(5y)16.91%
ROICexgc(3y)20.83%
ROICexgc(5y)19.4%
ROCE(3y)21.39%
ROCE(5y)19.49%
ROICexgc growth 3Y13.97%
ROICexgc growth 5Y3.36%
ROICexc growth 3Y5.51%
ROICexc growth 5Y-1.33%
OM growth 3Y24.62%
OM growth 5Y6.58%
PM growth 3Y26.95%
PM growth 5Y7.37%
GM growth 3Y11.02%
GM growth 5Y2.04%
F-Score8
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 48.77% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.5% | ||
| Profit Quality | 109.75% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 5.16 |
F-Score8
WACC8.55%
ROIC/WACC2.01
Cap/Depr(3y)59.73%
Cap/Depr(5y)76.77%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.77%
Profit Quality(3y)85.17%
Profit Quality(5y)74.31%
High Growth Momentum
Growth
EPS 1Y (TTM)5.11%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%-22.63%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.27%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%-4.78%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.07%
EBIT growth 3Y31.78%
EBIT growth 5Y11.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y79.71%
FCF growth 3Y74.9%
FCF growth 5Y10.72%
OCF growth 1Y68.26%
OCF growth 3Y46.49%
OCF growth 5Y9.03%
NEWMARKET CORP / NEU FAQ
What is the ChartMill fundamental rating of NEWMARKET CORP (NEU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NEU.
Can you provide the valuation status for NEWMARKET CORP?
ChartMill assigns a valuation rating of 4 / 10 to NEWMARKET CORP (NEU). This can be considered as Fairly Valued.
Can you provide the profitability details for NEWMARKET CORP?
NEWMARKET CORP (NEU) has a profitability rating of 9 / 10.
Can you provide the dividend sustainability for NEU stock?
The dividend rating of NEWMARKET CORP (NEU) is 6 / 10 and the dividend payout ratio is 20.86%.