Newmarket (NEU) AI Stock Analysis

• Market Cap: $7.07B
• Dividend Yield: 1.43%
• Average Volume (3M): 84.96K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.59
• Revenue Growth: 2.27%
• EPS Growth: 17.81%
• Country: US
• Employees: 2,060
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 11.84
• Shares Outstanding: 9,396,621
• 10 Day Avg. Volume: 59,353
• 30 Day Avg. Volume: 84,958
• PEG Ratio: 0.55
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 10.93
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 8.05
• Enterprise Value/Ebitda: 9.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $873.00 ▲(16.32% Upside)

Newmarket's strong financial performance and earnings growth are key strengths, supported by a solid balance sheet and efficient cash flow management. While technical indicators suggest caution, the company's valuation remains reasonable. Challenges in the Petroleum Additives segment and external economic factors are notable risks.

Newmarket Business Overview & Revenue Model

Company Description

Newmarket (NEU) is a technology-driven company specializing in the development of software solutions for the hospitality and travel sectors. The company provides a range of products and services, including property management systems, central reservation systems, and business intelligence tools, aimed at enhancing operational efficiency and guest experience for hotels, resorts, and travel agencies.

How the Company Makes Money

Newmarket generates revenue primarily through subscription fees for its software solutions, which are offered on a SaaS (Software as a Service) model. This allows clients to access the latest updates and features without the need for significant upfront investment in hardware or software. Additionally, Newmarket earns money through implementation services, training, and ongoing support, creating a robust revenue stream from both new and existing customers. Strategic partnerships with major hotel chains and travel organizations also contribute to its earnings by expanding its market reach and increasing client acquisition.

Newmarket Financial Statement Overview

Summary

Newmarket demonstrates strong profitability with high margins and efficient equity use. Despite a slight decline in revenue growth, the balance sheet is solid with manageable leverage and strong cash flow metrics.

Income Statement

Newmarket has demonstrated strong profitability with a TTM gross profit margin of 32.68% and a net profit margin of 17.28%. The company also shows a robust EBIT margin of 21.78% and an EBITDA margin of 26.54%. Revenue growth, however, is slightly declining from the previous year, indicating potential challenges in maintaining top-line growth.

Balance Sheet

The balance sheet portrays a solid financial position with a debt-to-equity ratio of 0.57, indicating manageable leverage. Return on equity is impressive at 29.79%, reflecting efficient use of equity to generate profits. The equity ratio is strong at 50.45%, providing a stable asset base.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.21, showcasing efficient cash generation. The free cash flow to net income ratio is commendable at 1.09. Despite a decrease in free cash flow compared to the prior period, the company maintains solid cash flow metrics overall.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	2.79B	2.70B	2.76B	2.36B	2.01B
Gross Profit	908.50M	886.35M	772.51M	640.50M	547.71M	595.03M
EBITDA	781.55M	758.43M	604.33M	465.22M	401.09M	441.62M
Net Income	480.25M	462.41M	388.86M	279.54M	190.91M	270.57M
Balance Sheet
Total Assets	3.19B	3.13B	2.31B	2.41B	2.56B	1.93B
Cash, Cash Equivalents and Short-Term Investments	70.26M	77.48M	111.94M	68.71M	459.22M	125.17M
Total Debt	918.38M	1.06B	733.60M	1.07B	1.21B	660.58M
Total Liabilities	1.58B	1.67B	1.23B	1.64B	1.80B	1.17B
Stockholders Equity	1.61B	1.46B	1.08B	762.41M	762.13M	759.82M
Cash Flow
Free Cash Flow	525.10M	462.27M	528.53M	52.45M	86.40M	190.84M
Operating Cash Flow	583.18M	519.59M	576.82M	108.62M	165.34M	284.15M
Investing Cash Flow	-58.08M	-738.80M	-48.29M	315.89M	-461.41M	-74.24M
Financing Cash Flow	-548.89M	185.81M	-487.59M	-439.36M	255.13M	-231.46M

Newmarket Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 750.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEU, the sentiment is Negative. The current price of 750.52 is below the 20-day moving average (MA) of 800.34, below the 50-day MA of 808.40, and above the 200-day MA of 655.07, indicating a neutral trend. The MACD of -16.92 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEU.

Newmarket Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEU	―	$7.07B	14.90	33.61%	1.43%	2.27%	17.81%
ESI	―	$6.33B	26.43	9.62%	1.21%	5.41%	23.44%
AXTA	―	$6.29B	14.28	22.09%	―	-1.01%	50.58%
AVTR	―	$10.50B	15.29	11.73%	―	-2.34%	89.86%
EMN	―	$7.20B	8.81	14.52%	5.30%	1.60%	-3.97%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	―	$12.43B	-10.32	-8.66%	1.53%	-33.05%	-97.63%

Newmarket Corporate Events

NewMarket Announces $2.75 Quarterly Dividend

On August 7, 2025, NewMarket Corporation announced a quarterly dividend of $2.75 per share, payable on October 1, 2025, to shareholders recorded by September 15, 2025. This decision reflects the company’s ongoing commitment to its stakeholders and may impact its financial strategy and market positioning.

NewMarket’s Earnings Call: Record Income Amid Challenges

The recent earnings call for NewMarket Corporation presented a mixed sentiment, highlighting both achievements and challenges. The company reported record net income and robust growth in its Specialty Materials segment, yet faced hurdles in its Petroleum Additives segment due to external pressures such as inflation and tariffs. Despite these operational challenges, NewMarket’s dedication to shareholder returns and improved financial ratios offered a positive outlook.

NewMarket Corporation Reports Strong First Half 2025 Results

NewMarket Corporation is a holding company that operates through its subsidiaries, primarily in the chemical additives industry, enhancing the performance of petroleum products and manufacturing specialty materials for aerospace and defense sectors.