NEWMARKET CORP (NEU)
US6515871076 - Common Stock
Overall NEU gets a fundamental rating of 7 out of 10. We evaluated NEU against 84 industry peers in the Chemicals industry. NEU gets an excellent profitability rating and is at the same time showing great financial health properties. NEU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NEU had positive earnings in the past year.
In the past year NEU had a positive cash flow from operations.
Each year in the past 5 years NEU has been profitable.
In the past 5 years NEU always reported a positive cash flow from operatings.
1.2 Ratios
NEU has a Return On Assets of 12.59%. This is amongst the best in the industry. NEU outperforms 96.43% of its industry peers.
The Return On Equity of NEU (34.51%) is better than 97.62% of its industry peers.
NEU has a better Return On Invested Capital (14.41%) than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEU is significantly above the industry average of 7.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 34.51% | ||
| ROIC | 14.41% |
ROA(3y)11.94%
ROA(5y)12.65%
ROE(3y)32.51%
ROE(5y)34.04%
ROIC(3y)15.14%
ROIC(5y)15.58%
1.3 Margins
NEU's Profit Margin of 14.77% is amongst the best of the industry. NEU outperforms 86.90% of its industry peers.
In the last couple of years the Profit Margin of NEU has grown nicely.
The Operating Margin of NEU (18.52%) is better than 85.71% of its industry peers.
NEU's Operating Margin has improved in the last couple of years.
NEU has a Gross Margin (29.37%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NEU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.52% | ||
| PM (TTM) | 14.77% | ||
| GM | 29.37% |
OM growth 3Y4.91%
OM growth 5Y6.97%
PM growth 3Y2.26%
PM growth 5Y7.01%
GM growth 3Y-1.09%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
NEU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NEU has been reduced compared to 1 year ago.
The number of shares outstanding for NEU has been reduced compared to 5 years ago.
The debt/assets ratio for NEU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.72 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU's Altman-Z score of 3.72 is amongst the best of the industry. NEU outperforms 83.33% of its industry peers.
The Debt to FCF ratio of NEU is 2.46, which is a good value as it means it would take NEU, 2.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NEU (2.46) is better than 86.90% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that NEU has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.11, NEU is doing worse than 70.24% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for NEU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.71
WACC8.42%
2.3 Liquidity
A Current Ratio of 2.86 indicates that NEU has no problem at all paying its short term obligations.
NEU's Current ratio of 2.86 is fine compared to the rest of the industry. NEU outperforms 72.62% of its industry peers.
A Quick Ratio of 1.60 indicates that NEU should not have too much problems paying its short term obligations.
NEU's Quick ratio of 1.60 is fine compared to the rest of the industry. NEU outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.06% over the past year.
The Earnings Per Share has been growing by 14.70% on average over the past years. This is quite good.
Looking at the last year, NEU shows a decrease in Revenue. The Revenue has decreased by -4.01% in the last year.
Measured over the past years, NEU shows a small growth in Revenue. The Revenue has been growing by 3.34% on average per year.
EPS 1Y (TTM)29.06%
EPS 3Y18.1%
EPS 5Y14.7%
EPS growth Q2Q11.3%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y10.3%
Revenue growth 5Y3.34%
Revenue growth Q2Q-0.86%
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
The Price/Earnings ratio is 13.16, which indicates a correct valuation of NEU.
NEU's Price/Earnings ratio is a bit cheaper when compared to the industry. NEU is cheaper than 77.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, NEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEU is valued a bit cheaper than 63.10% of the companies in the same industry.
84.52% 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 | 10.09 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
NEU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.85%.
Compared to an average industry Dividend Yield of 3.12, NEU pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, NEU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
The dividend of NEU has a limited annual growth rate of 4.75%.
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)4.75%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
22.31% of the earnings are spent on dividend by NEU. This is a low number and sustainable payout ratio.
The dividend of NEU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.31%
EPS Next 2YN/A
EPS Next 3YN/A
NEWMARKET CORP
NYSE:NEU (5/3/2024, 7:08:29 PM)
After market: 546.89 0 (0%)546.89
+7.37 (+1.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 34.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.52% | ||
| PM (TTM) | 14.77% | ||
| GM | 29.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)29.06%
EPS 3Y18.1%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y10.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y