NEWMARKET CORP (NEU) Stock Fundamental Analysis
NYSE:NEU - New York Stock Exchange, Inc. - US6515871076 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to NEU. NEU was compared to 85 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 has a valuation in line with the averages, 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
NEU has a Return On Assets of 14.72%. This is amongst the best in the industry. NEU outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 31.52%, NEU belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
NEU has a better Return On Invested Capital (16.99%) than 98.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEU is significantly above the industry average of 7.11%.
The 3 year average ROIC (16.97%) for NEU is below the current ROIC(16.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 31.52% | ||
| ROIC | 16.99% |
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
Looking at the Profit Margin, with a value of 16.54%, NEU belongs to the top of the industry, outperforming 97.65% 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 21.17%. This is amongst the best in the industry. NEU outperforms 91.76% of its industry peers.
NEU's Operating Margin has improved in the last couple of years.
NEU has a Gross Margin (31.81%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NEU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 16.54% | ||
| GM | 31.81% |
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.
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 4.55 indicates that NEU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.55, NEU belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
The Debt to FCF ratio of NEU is 2.10, which is a good value as it means it would take NEU, 2.10 years of fcf income to pay off all of its debts.
NEU has a Debt to FCF ratio of 2.10. This is amongst the best in the industry. NEU outperforms 89.41% of its industry peers.
NEU has a Debt/Equity ratio of 0.66. This is a neutral value indicating NEU is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, NEU perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
Although NEU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.92
WACC8.85%
2.3 Liquidity
A Current Ratio of 2.75 indicates that NEU has no problem at all paying its short term obligations.
NEU has a better Current ratio (2.75) than 81.18% of its industry peers.
NEU has a Quick Ratio of 1.40. 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 of 1.40. This is in the better half of the industry: NEU outperforms 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
NEU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.86%, which is quite impressive.
NEU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.30% yearly.
NEU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.27%.
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)20.86%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%18.08%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%0.6%
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 12.63, which indicates a correct valuation of NEU.
74.12% of the companies in the same industry are more expensive than NEU, based on the Price/Earnings ratio.
NEU is valuated rather cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NEU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NEU is valued a bit cheaper than 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.94 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
NEU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, NEU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.79, NEU has a dividend in line with its industry peers.
NEU's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 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
20.81% 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.
DP20.81%
EPS Next 2YN/A
EPS Next 3YN/A
634.48
+0.78 (+0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.02%
Inst Owner Change1.03%
Ins Owners6.54%
Ins Owner Change46.15%
Market Cap5.98B
Analysts45
Price TargetN/A
Short Float %1.63%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend10.03
Dividend Growth(5Y)6.59%
DP20.81%
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 | 12.63 | ||
| Fwd PE | N/A | ||
| P/S | 2.15 | ||
| P/FCF | 12.94 | ||
| P/OCF | 11.52 | ||
| P/B | 4.09 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)50.24
EY7.92%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)49.02
FCFY7.73%
OCF(TTM)55.1
OCFY8.68%
SpS295.5
BVpS154.99
TBVpS75.41
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 31.52% | ||
| ROCE | 21.42% | ||
| ROIC | 16.99% | ||
| ROICexc | 17.49% | ||
| ROICexgc | 24.29% | ||
| OM | 21.17% | ||
| PM (TTM) | 16.54% | ||
| GM | 31.81% | ||
| FCFM | 16.59% |
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-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 49.01% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 10.55 | ||
| Cash Conversion | 73.49% | ||
| Profit Quality | 100.33% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.55 |
F-Score5
WACC8.85%
ROIC/WACC1.92
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)20.86%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%18.08%
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%0.6%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.18%
EBIT growth 3Y31.78%
EBIT growth 5Y11.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.54%
FCF growth 3Y74.9%
FCF growth 5Y10.72%
OCF growth 1Y-9.92%
OCF growth 3Y46.49%
OCF growth 5Y9.03%