Newmarket Corporation (NEU)
NYSE:NEU
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Newmarket
(NYSE:NEU)
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Rating:66Neutral
Price Target:
$666.00
▼(-7.59% Downside)
Action:ReiteratedDate:02/27/26
NEU scores in the mid-range primarily due to strong profitability, solid recent cash generation, and a strengthened balance sheet, supported by a reasonable valuation. The score is held back by weak technicals (price below key moving averages and negative MACD) and a mixed earnings-call backdrop, with softness in Petroleum Additives and tax/margin headwinds partially offsetting Specialty Materials momentum and continued capital returns.
Positive Factors
Cash generation
Consistent, high operating cash flow and free cash flow over 2023–2025 provide durable internal funding for capex, acquisitions, dividends and buybacks. Strong cash conversion supports capital allocation flexibility and resilience through cyclical end-market swings over the next several months.
Negative Factors
Core Petroleum Additives softness
Sustained weakness in the core petroleum additives business—declining shipments, sales and operating profit—threatens the company’s primary revenue engine. If demand or pricing pressures persist, near‑term structural earnings and cash flow could be constrained, limiting upside from investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, high operating cash flow and free cash flow over 2023–2025 provide durable internal funding for capex, acquisitions, dividends and buybacks. Strong cash conversion supports capital allocation flexibility and resilience through cyclical end-market swings over the next several months.
Read all positive factors
Newmarket (NEU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.97B
Dividend Yield1.59%
Average Volume (3M)151.40K
Price to Earnings (P/E)15.4
Beta (1Y)0.68
Revenue Growth-1.11%
EPS Growth5.15%
CountryUS
Employees2,060
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)8.65
Shares Outstanding9,395,455
10 Day Avg. Volume137,250
30 Day Avg. Volume151,396
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 Cap1.15
Enterprise Value/Revenue2.52
Enterprise Value/Gross Profit8.00
Enterprise Value/Ebitda9.67
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 generates revenue primarily through subscription fees for its software products and services. The company employs a SaaS (Software as a Service) model, where clients pay a recurring fee for access to its technology platform, including up...
Newmarket Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful, strategic progress in Specialty Materials (strong sales and operating profit growth, major capital commitment) and disciplined balance sheet management (cash returns to shareholders and lower leverage) contrast with notable softness in the core Petroleum Additives business (lower shipments, sales and operating profit declines), higher effective tax rate pressure on net income and margin headwinds from inventory and inflation. Overall the company emphasized resilience and long-term investments despite near-term headwinds.Positive Updates
Strong Specialty Materials Growth
Specialty Materials sales increased to $182,000,000 for FY2025 from $141,000,000 in FY2024 (+29.1%). Operating profit rose to $47,000,000 from $17,000,000 (+176.5%), driven by higher volume at Ampac and the inclusion of the Calca acquisition.
Negative Updates
Petroleum Additives Sales and Profit Declines
Petroleum Additives Q4 sales decreased to $585,000,000 from $626,000,000 (-6.6%) and Q4 operating profit fell to $107,000,000 from $136,000,000 (-21.3%). Full-year sales fell to $2,500,000,000 from $2,600,000,000 (-3.8%) and operating profit declined to $520,000,000 from $592,000,000 (-12.2%).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Specialty Materials Growth
Specialty Materials sales increased to $182,000,000 for FY2025 from $141,000,000 in FY2024 (+29.1%). Operating profit rose to $47,000,000 from $17,000,000 (+176.5%), driven by higher volume at Ampac and the inclusion of the Calca acquisition.
Read all positive updates
Company Guidance
Management guided that it expects continued strength in both Petroleum Additives and Specialty Materials while prioritizing technology investment, operating efficiency, inventory optimization and portfolio profitability; it has committed approximately $1,000,000,000 to the specialty materials segment (including AMPAC and the Calca acquisition closed 10/01/2025). In 2025 the company returned $183,000,000 to shareholders (share repurchases $77,000,000; dividends $106,000,000), reduced total debt by $88,000,000, and ended the year with net debt/EBITDA of 1.1x (down from 1.2x). For context, Q4 pretax income was $113,000,000 (vs. $134,000,000 a year ago) and full-year pretax income was $561,000,000 (vs. $584,000,000); Q4 net income was $81,000,000 or $8.65 per share (vs. $111,000,000 or $11.56) and full-year net income was $419,000,000 or $44.44 per share (vs. $462,000,000 or $48.22). Petroleum Additives Q4 sales were $585,000,000 with operating profit of $107,000,000 (vs. $626,000,000 and $136,000,000), with shipments down 6% in the quarter and 4.9% for the year (full-year sales $2,500,000,000; operating profit $520,000,000). Specialty Materials Q4 sales were $49,000,000 with operating profit $7,000,000 (full-year sales $182,000,000; operating profit $47,000,000). Management cautioned that a higher effective tax rate, inflation, tariffs and market softness are headwinds but reiterated a focus on long-term value creation.Newmarket Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.73B | 2.79B | 2.70B | 2.76B | 2.36B |
| Gross Profit | 857.40M | 886.35M | 772.51M | 640.50M | 547.71M |
| EBITDA | 666.15M | 758.43M | 604.33M | 465.22M | 401.09M |
| Net Income | 418.75M | 462.41M | 388.86M | 279.54M | 190.91M |
Balance Sheet | |||||
| Total Assets | 3.49B | 3.13B | 2.31B | 2.41B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 77.60M | 77.48M | 111.94M | 68.71M | 459.22M |
| Total Debt | 961.64M | 1.06B | 733.60M | 1.09B | 1.23B |
| Total Liabilities | 1.71B | 1.67B | 1.23B | 1.64B | 1.80B |
| Stockholders Equity | 1.78B | 1.46B | 1.08B | 762.41M | 762.13M |
Cash Flow | |||||
| Free Cash Flow | 491.33M | 462.27M | 528.53M | 52.45M | 86.40M |
| Operating Cash Flow | 568.97M | 519.59M | 576.82M | 108.62M | 165.34M |
| Investing Cash Flow | -291.08M | -738.80M | -48.29M | 315.89M | -461.41M |
| Financing Cash Flow | -279.14M | 185.81M | -487.59M | -439.36M | 255.13M |
Newmarket Technical Analysis
Neutral
720.68
Price Trends
635.10
Positive
680.87
Negative
718.96
Negative
Market Momentum
0.90
Negative
54.74
Neutral
83.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEU, the sentiment is Neutral. The current price of 720.68 is above the 20-day moving average (MA) of 618.04, above the 50-day MA of 635.10, and above the 200-day MA of 718.96, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 83.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $8.30B | 31.70 | 7.29% | 1.25% | 3.87% | -10.30% | |
68 Neutral | $8.57B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
66 Neutral | $5.97B | 15.40 | 25.38% | 1.59% | -1.11% | 5.15% | |
65 Neutral | $5.72B | 18.46 | 16.86% | ― | -1.83% | 40.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $20.99B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% | |
50 Neutral | $5.39B | -14.65 | -9.02% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
NEU
Newmarket
635.86
99.40
18.53%
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Newmarket Corporate Events
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.