NEWMARKET CORP (NEU) Stock Fundamental Analysis
USA - NYSE:NEU - US6515871076 - Common Stock
816.26 USD
-10.94 (-1.32%)
816.26 USD
0 (0%)
Taking everything into account, NEU scores 7 out of 10 in our fundamental rating. NEU was compared to 83 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making NEU a very profitable company, without any liquidiy or solvency issues. NEU has a valuation in line with the averages, 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.
Each year in the past 5 years NEU had a positive operating cash flow.
1.2 Ratios
NEU has a Return On Assets of 14.98%. This is amongst the best in the industry. NEU outperforms 100.00% of its industry peers.
NEU has a better Return On Equity (29.69%) than 98.80% of its industry peers.
With an excellent Return On Invested Capital value of 17.20%, NEU belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEU is significantly above the industry average of 6.34%.
The last Return On Invested Capital (17.20%) for NEU is above the 3 year average (16.97%), which is a sign of increasing profitability.
| 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
NEU has a Profit Margin of 17.22%. This is amongst the best in the industry. NEU outperforms 97.59% of its industry peers.
In the last couple of years the Profit Margin of NEU has grown nicely.
With an excellent Operating Margin value of 21.78%, NEU belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
In the last couple of years the Operating Margin of NEU has grown nicely.
NEU has a better Gross Margin (32.69%) than 61.45% of its industry peers.
In the last couple of years the Gross Margin of NEU has grown nicely.
| 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
NEU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
Compared to 1 year ago, NEU has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.33 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU has a Altman-Z score of 5.33. This is amongst the best in the industry. NEU outperforms 96.39% 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.
With an excellent Debt to FCF ratio value of 1.60, NEU belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that NEU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, NEU is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 5.33 |
ROIC/WACC1.9
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.66 indicates that NEU has no problem at all paying its short term obligations.
NEU's Current ratio of 2.66 is fine compared to the rest of the industry. NEU outperforms 73.49% 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 line with its industry, outperforming 59.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.76% over the past year.
NEU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.30% yearly.
Looking at the last year, NEU shows a small growth in Revenue. The Revenue has grown by 2.26% in the last year.
NEU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.93% yearly.
EPS 1Y (TTM)17.76%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%1.81%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%-1.65%
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
NEU is valuated correctly with a Price/Earnings ratio of 16.18.
Based on the Price/Earnings ratio, NEU is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.38. NEU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NEU's Enterprise Value to EBITDA is on the same level as the industry average.
79.52% 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 | 14.61 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
The excellent profitability rating of NEU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, NEU has a dividend in line with its industry peers.
With a Dividend Yield of 1.33, NEU pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of NEU grows each year by 6.59%, which is quite nice.
NEU has been paying a dividend for at least 10 years, so it has 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.
The dividend of NEU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.86%
EPS Next 2YN/A
EPS Next 3YN/A
816.26
-10.94 (-1.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners66.36%
Inst Owner Change-1.58%
Ins Owners6.64%
Ins Owner Change-3.02%
Market Cap7.67B
Analysts45
Price TargetN/A
Short Float %1.95%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 | 16.18 | ||
| Fwd PE | N/A | ||
| P/S | 2.76 | ||
| P/FCF | 14.61 | ||
| P/OCF | 13.16 | ||
| P/B | 4.76 | ||
| P/tB | 8.78 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)50.45
EY6.18%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)55.86
FCFY6.84%
OCF(TTM)62.04
OCFY7.6%
SpS295.64
BVpS171.46
TBVpS92.96
PEG (NY)N/A
PEG (5Y)0.99
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%
ROICexcg growth 3Y13.97%
ROICexcg 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 | 5.33 |
F-Score8
WACC9.05%
ROIC/WACC1.9
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)17.76%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%1.81%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%-1.65%
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%