Newmarket Corporation (NEU)
NYSE:NEU
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Newmarket
(NYSE:NEU)
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Rating:65Neutral
Price Target:
$690.00
▼(-4.26% Downside)
Action:ReiteratedDate:04/23/26
The score is driven primarily by solid operating profitability and cash generation, offset by balance-sheet risk signals (TTM negative equity) and softer near-term segment trends cited on the earnings call (lower shipments and profit pressure). Technicals are neutral-to-mixed, while valuation and dividend support are moderately favorable.
Positive Factors
Profitability & Margins
Sustained high trailing margins reflect durable value-added formulation capabilities and pricing power in petroleum additives. Strong gross and net margins support reinvestment in technology, resilience to input-cost swings, and a structural earnings cushion that helps preserve profitability across cycles.
Negative Factors
TTM Negative Equity
Trailing-twelve-month negative equity is a structural accounting and solvency concern that can impair access to capital, complicate covenant negotiations and raise investor scrutiny. Even with healthy cash flow, negative equity undermines perceived balance-sheet quality and increases financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Margins
Sustained high trailing margins reflect durable value-added formulation capabilities and pricing power in petroleum additives. Strong gross and net margins support reinvestment in technology, resilience to input-cost swings, and a structural earnings cushion that helps preserve profitability across cycles.
Read all positive factors
Newmarket (NEU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.42B
Dividend Yield1.59%
Average Volume (3M)130.88K
Price to Earnings (P/E)12.8
Beta (1Y)0.62
Revenue Growth-1.11%
EPS Growth5.15%
CountryUS
Employees2,060
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)12.62
Shares Outstanding9,395,455
10 Day Avg. Volume120,130
30 Day Avg. Volume130,879
Financial Highlights & Ratios
PEG Ratio-1.97
Price to Book (P/B)3.63
Price to Sales (P/S)2.37
P/FCF Ratio13.13
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit8.65
Enterprise Value/Ebitda10.71
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$2.47B
Newmarket Business Overview & Revenue Model
Company Description
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road power...
How the Company Makes Money
NewMarket makes money primarily by selling petroleum additive products and related solutions to customers in the global fuels and lubricants supply chain. The largest revenue stream is its petroleum additives business, which generates sales from (...
Newmarket Key Performance Indicators (KPIs)
Newmarket Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company demonstrated healthy cash generation, low leverage (1.2x net debt/EBITDA), active shareholder returns, and margin resilience in petroleum additives, along with sales growth in Specialty Materials driven by the Calco acquisition. Offsetting these positives were declines in net income and EPS, lower petroleum sales and shipments (shipments -7%), and a near-50% drop in Specialty Materials operating profit due to shipment mix; management also faces input-cost inflation and geopolitical headwinds. Management is taking operational and pricing actions and noted a late-quarter pickup in shipments, but near-term volatility in Specialty results remains a concern.Positive Updates
Strong cash generation and shareholder returns
Company generated solid cash flows in Q1 2026 and returned capital to shareholders via share repurchases of $126 million and dividends of $28 million. (Transcript also states 'returned $104 million' which is inconsistent with the $126M + $28M breakdown.)
Negative Updates
Net income and EPS declined year-over-year
Net income for Q1 2026 was $118 million ($12.62 per share) versus $126 million ($13.26 per share) in Q1 2025 — net income down ~6.3% and EPS down ~4.8% year-over-year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash generation and shareholder returns
Company generated solid cash flows in Q1 2026 and returned capital to shareholders via share repurchases of $126 million and dividends of $28 million. (Transcript also states 'returned $104 million' which is inconsistent with the $126M + $28M breakdown.)
Read all positive updates
Company Guidance
In Q1 2026 the company reiterated guidance focused on long-term value creation—investing in technology and its supply network, improving efficiency and managing operating costs—and cited key metrics: net income of $118 million ($12.62/share) vs $126M ($13.26) a year ago; Petroleum Additives sales of $610M (down from $646M) and operating profit of $135M (vs $142M) with shipments down 7% but improving late in the quarter; Specialty Materials sales of $58M (vs $54M) and operating profit of $12M (vs $23M); share repurchases of $126M and dividends of $28M (reported as $104M returned to shareholders), net debt/EBITDA of 1.2x, and an October 1, 2025 acquisition of Calco noted as contributing to results.Newmarket Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
48
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69B | 2.73B | 2.79B | 2.70B | 2.76B | 2.36B |
| Gross Profit | 842.26M | 857.40M | 886.35M | 772.51M | 640.50M | 547.71M |
| EBITDA | 680.25M | 666.15M | 758.43M | 604.33M | 465.22M | 401.09M |
| Net Income | 410.87M | 418.75M | 462.41M | 388.86M | 279.54M | 190.91M |
Balance Sheet | ||||||
| Total Assets | 73.16M | 3.49B | 3.13B | 2.31B | 2.41B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 73.16M | 77.60M | 77.48M | 111.94M | 68.71M | 459.22M |
| Total Debt | 939.61M | 961.64M | 1.06B | 733.60M | 1.09B | 1.23B |
| Total Liabilities | 973.20M | 1.71B | 1.67B | 1.23B | 1.64B | 1.80B |
| Stockholders Equity | -900.04M | 1.78B | 1.46B | 1.08B | 762.41M | 762.13M |
Cash Flow | ||||||
| Free Cash Flow | 483.71M | 491.33M | 462.27M | 528.53M | 52.45M | 86.40M |
| Operating Cash Flow | 572.69M | 568.97M | 519.59M | 576.82M | 108.62M | 165.34M |
| Investing Cash Flow | -302.43M | -291.08M | -738.80M | -48.29M | 315.89M | -461.41M |
| Financing Cash Flow | -311.52M | -279.14M | 185.81M | -487.59M | -439.36M | 255.13M |
Newmarket Technical Analysis
Negative
720.68
Price Trends
630.93
Positive
669.06
Negative
717.86
Negative
Market Momentum
4.84
Negative
49.59
Neutral
46.64
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 720.68 is above the 20-day moving average (MA) of 635.16, above the 50-day MA of 630.93, and above the 200-day MA of 717.86, indicating a neutral trend. The MACD of 4.84 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEU.
Newmarket Risk Analysis
Newmarket disclosed 21 risk factors in its most recent earnings report. Newmarket reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Newmarket Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $9.25B | 31.70 | 7.29% | 1.25% | 3.87% | -10.30% | |
68 Neutral | $8.22B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
65 Neutral | $6.42B | 12.75 | 39.31% | 1.59% | -1.11% | 5.15% | |
65 Neutral | $6.26B | 18.46 | 16.86% | ― | -1.83% | 40.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $22.76B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% | |
51 Neutral | $5.25B | -14.65 | -9.02% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
NEU
Newmarket
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14.44%
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Newmarket Corporate Events
DividendsShareholder Meetings
NewMarket Shareholders Back Board, Approve Dividend Declaration
Positive
Apr 23, 2026
On April 23, 2026, NewMarket Corporation held its 2026 Annual Meeting of Shareholders, where investors elected all seven board nominees for another one-year term and approved, on an advisory basis, the executive compensation program for named exec...
Business Operations and StrategyDividends
NewMarket Declares Quarterly Dividend, Signaling Ongoing Confidence
Positive
Feb 26, 2026
On February 26, 2026, NewMarket Corporation announced that its board of directors had declared a quarterly dividend of $3.00 per share on its common stock. The dividend is scheduled to be paid on April 1, 2026, to shareholders of record as of the ...
Executive/Board Changes
NewMarket Strengthens Finance Team With New Accounting Officer
Positive
Feb 18, 2026
On February 18, 2026, NewMarket Corporation appointed Susan M. Ridlehoover as Principal Accounting Officer, effective immediately, reflecting a further build-out of its senior finance team. Ridlehoover, a licensed CPA in Virginia with more than tw...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.