NEWMARKET CORP (NEU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEU - US6515871076 - Common Stock
766.42 USD
+3.25 (+0.43%)
766.42 USD
0 (0%)
Taking everything into account, NEU scores 6 out of 10 in our fundamental rating. NEU was compared to 81 industry peers in the Chemicals industry. NEU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
NEU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEU has a better Return On Assets (13.81%) than 98.77% of its industry peers.
With an excellent Return On Equity value of 26.41%, NEU belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
NEU's Return On Invested Capital of 15.92% is amongst the best of the industry. NEU outperforms 97.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEU is significantly above the industry average of 6.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.81% | ||
| ROE | 26.41% | ||
| ROIC | 15.92% |
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 16.27%, NEU belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
NEU's Profit Margin has improved in the last couple of years.
NEU has a Operating Margin of 20.64%. This is amongst the best in the industry. NEU outperforms 87.65% of its industry peers.
NEU's Operating Margin has improved in the last couple of years.
The Gross Margin of NEU (31.86%) is better than 61.73% of its industry peers.
NEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.64% | ||
| PM (TTM) | 16.27% | ||
| GM | 31.86% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEU is creating value.
Compared to 1 year ago, NEU has less shares outstanding
The number of shares outstanding for NEU has been reduced compared to 5 years ago.
The debt/assets ratio for NEU is higher compared to a year ago.
2.2 Solvency
NEU has an Altman-Z score of 5.17. This indicates that NEU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.17, NEU belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
NEU has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
The Debt to FCF ratio of NEU (1.44) is better than 95.06% of its industry peers.
NEU has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
NEU has a better Debt to Equity ratio (0.46) than 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.83
WACC8.69%
2.3 Liquidity
NEU has a Current Ratio of 2.68. This indicates that NEU is financially healthy and has no problem in meeting its short term obligations.
NEU has a Current ratio of 2.68. This is in the better half of the industry: NEU outperforms 74.07% 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.
NEU has a Quick ratio (1.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.11% 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 decrease in Revenue. The Revenue has decreased by -1.11% in the last year.
Measured over the past years, NEU shows a small growth in Revenue. The Revenue has been growing by 4.93% on average per year.
EPS 1Y (TTM)5.11%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%-22.63%
Revenue 1Y (TTM)-1.11%
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
The Price/Earnings ratio is 16.19, which indicates a correct valuation of NEU.
Based on the Price/Earnings ratio, NEU is valued a bit cheaper than the industry average as 60.49% of the companies are valued more expensively.
NEU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEU is on the same level as its industry peers.
NEU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEU is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 11.4 |
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 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.88, NEU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, NEU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
On average, the dividend of NEU grows each year by 6.59%, which is quite nice.
NEU has paid a dividend for at least 10 years, which is a reliable track record.
NEU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.59%
Div Incr Years6
Div Non Decr Years18
5.3 Sustainability
22.77% of the earnings are spent on dividend by NEU. This is a low number and sustainable payout ratio.
NEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.77%
EPS Next 2YN/A
EPS Next 3YN/A
766.42
+3.25 (+0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.63%
Inst Owner Change1.81%
Ins Owners6.64%
Ins Owner Change-1.29%
Market Cap7.20B
Revenue(TTM)2.74B
Net Income(TTM)446.50M
Analysts45
Price TargetN/A
Short Float %2.34%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend10.03
Dividend Growth(5Y)6.59%
DP22.77%
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 | 16.19 | ||
| Fwd PE | N/A | ||
| P/S | 2.63 | ||
| P/FCF | 13.22 | ||
| P/OCF | 11.83 | ||
| P/B | 4.26 | ||
| P/tB | 7.51 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)47.33
EY6.18%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)57.96
FCFY7.56%
OCF(TTM)64.79
OCFY8.45%
SpS291.96
BVpS179.83
TBVpS102.01
PEG (NY)N/A
PEG (5Y)0.99
Graham Number437.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.81% | ||
| ROE | 26.41% | ||
| ROCE | 20.06% | ||
| ROIC | 15.92% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 22.59% | ||
| OM | 20.64% | ||
| PM (TTM) | 16.27% | ||
| GM | 31.86% | ||
| FCFM | 19.85% |
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.44 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 52.48% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.41% | ||
| Profit Quality | 122.01% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 5.17 |
F-Score7
WACC8.69%
ROIC/WACC1.83
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)-1.11%
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 1Y1.4%
EBIT growth 3Y31.78%
EBIT growth 5Y11.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.82%
FCF growth 3Y74.9%
FCF growth 5Y10.72%
OCF growth 1Y22.35%
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 22.77%.