NEWMARKET CORP (NEU) Stock Fundamental Analysis
NYSE:NEU - New York Stock Exchange, Inc. - US6515871076 - Common Stock - Currency: USD
NEU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NEU had positive earnings in the past year.
NEU had a positive operating cash flow in the past year.
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 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.
Measured over the past 3 years, the Average Return On Invested Capital for NEU is significantly above the industry average of 7.05%.
The last Return On Invested Capital (16.99%) for NEU is above the 3 year average (16.97%), which is a sign of increasing profitability.
| 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
The Profit Margin of NEU (16.54%) is better than 96.47% of its industry peers.
NEU's Profit Margin has improved in the last couple of years.
NEU's Operating Margin of 21.17% is amongst the best of the industry. NEU outperforms 91.76% of its industry peers.
NEU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.81%, NEU is in line with its industry, outperforming 60.00% of the companies in the same industry.
NEU's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, NEU has less shares outstanding
Compared to 1 year ago, NEU has a worse debt to assets ratio.
2.2 Solvency
NEU has an Altman-Z score of 4.45. This indicates that NEU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NEU (4.45) is better than 91.76% of its industry peers.
NEU has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as NEU would need 2.10 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.10, NEU belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
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.
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 | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.96
WACC8.69%
2.3 Liquidity
NEU has a Current Ratio of 2.75. This indicates that NEU is financially healthy and has no problem in meeting its short term obligations.
NEU's Current ratio of 2.75 is fine compared to the rest of the industry. NEU outperforms 80.00% 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.
Looking at the Quick ratio, with a value of 1.40, NEU is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.86% over the past year.
The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
NEU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.27%.
NEU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.93% yearly.
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
Based on the Price/Earnings ratio of 11.96, the valuation of NEU can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NEU indicates a somewhat cheap valuation: NEU is cheaper than 75.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, NEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NEU's Enterprise Value to EBITDA ratio is in line with the industry average.
74.12% 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 | 12.34 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
NEU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, NEU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.85, NEU has a dividend in line with its industry peers.
NEU's Dividend Yield is slightly below the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of NEU is nicely growing with an annual growth rate of 6.59%!
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 20.81% 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.
DP20.81%
EPS Next 2YN/A
EPS Next 3YN/A
600.98
-5.89 (-0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.02%
Inst Owner Change1.72%
Ins Owners6.54%
Ins Owner Change6.34%
Market Cap5.70B
Analysts45
Price TargetN/A
Short Float %1.48%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 | 11.96 | ||
| Fwd PE | N/A | ||
| P/S | 2.05 | ||
| P/FCF | 12.34 | ||
| P/OCF | 10.98 | ||
| P/B | 3.9 | ||
| P/tB | 8.02 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)50.24
EY8.36%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)48.71
FCFY8.11%
OCF(TTM)54.75
OCFY9.11%
SpS293.63
BVpS154.01
TBVpS74.94
PEG (NY)N/A
PEG (5Y)0.73
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 | 4.45 |
F-Score5
WACC8.69%
ROIC/WACC1.96
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%