NEWMARKET CORP (NEU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEU - US6515871076 - Common Stock
704.44 USD
-4.7 (-0.66%)
704.4 USD
-0.04 (-0.01%)
Overall NEU gets a fundamental rating of 6 out of 10. We evaluated NEU against 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. Finally NEU also has an excellent dividend rating. These ratings could make NEU a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year NEU was profitable.
In the past year NEU had a positive cash flow from operations.
In the past 5 years NEU has always been profitable.
Each year in the past 5 years NEU had a positive operating cash flow.
1.2 Ratios
NEU has a better Return On Assets (13.81%) than 98.80% of its industry peers.
NEU has a Return On Equity of 26.41%. This is amongst the best in the industry. NEU outperforms 95.18% of its industry peers.
NEU's Return On Invested Capital of 15.92% is amongst the best of the industry. NEU outperforms 97.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEU is significantly above the industry average of 6.09%.
| 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
NEU's Profit Margin of 16.27% is amongst the best of the industry. NEU outperforms 96.39% of its industry peers.
NEU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.64%, NEU belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
In the last couple of years the Operating Margin of NEU has grown nicely.
NEU has a Gross Margin of 31.86%. This is in the better half of the industry: NEU outperforms 60.24% of its industry peers.
In the last couple of years the Gross Margin of NEU has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEU is creating some value.
NEU has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 4.96 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU has a better Altman-Z score (4.96) than 93.98% of its industry peers.
The Debt to FCF ratio of NEU is 1.44, which is an excellent value as it means it would take NEU, only 1.44 years of fcf income to pay off all of its debts.
NEU has a Debt to FCF ratio of 1.44. This is amongst the best in the industry. NEU outperforms 95.18% 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.
The Debt to Equity ratio of NEU (0.46) is better than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.09
WACC14.58%
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 better Current ratio (2.68) than 74.70% 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.
With a Quick ratio value of 1.43, NEU perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
The Revenue has decreased by -1.11% in the past 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)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
A Price/Earnings ratio of 14.88 indicates a correct valuation of NEU.
Based on the Price/Earnings ratio, NEU is valued a bit cheaper than the industry average as 69.88% of the companies are valued more expensively.
NEU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| 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 cheaply inside the industry as 83.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.15 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
NEU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 2.48, NEU has a dividend in line with its industry peers.
NEU's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
NEU pays out 22.77% 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.
DP22.77%
EPS Next 2YN/A
EPS Next 3YN/A
704.44
-4.7 (-0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.65%
Inst Owner Change1.83%
Ins Owners6.64%
Ins Owner Change-1.29%
Market Cap6.62B
Revenue(TTM)2.74B
Net Income(TTM)446.50M
Analysts45
Price TargetN/A
Short Float %2.5%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 | 14.88 | ||
| Fwd PE | N/A | ||
| P/S | 2.41 | ||
| P/FCF | 12.15 | ||
| P/OCF | 10.87 | ||
| P/B | 3.92 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 10.6 |
EPS(TTM)47.33
EY6.72%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)57.96
FCFY8.23%
OCF(TTM)64.79
OCFY9.2%
SpS291.96
BVpS179.83
TBVpS102.01
PEG (NY)N/A
PEG (5Y)0.91
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 | 4.96 |
F-Score7
WACC14.58%
ROIC/WACC1.09
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 7 / 10 and the dividend payout ratio is 22.77%.