Newmarket (NEU) AI Stock Analysis

• Market Cap: $7.07B
• Dividend Yield: 1.5%
• Average Volume (3M): 78.45K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.65
• Revenue Growth: -1.11%
• EPS Growth: 5.15%
• Country: US
• Employees: 2,060
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 10.67
• Shares Outstanding: 9,397,122
• 10 Day Avg. Volume: 113,894
• 30 Day Avg. Volume: 78,447
• PEG Ratio: 0.57
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 10.93
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 9.74
• Enterprise Value/Ebitda: 11.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $2.46B

• Rating: 68 Neutral
• Price Target: $826.00 ▲(8.00% Upside)

Newmarket's overall stock score reflects solid financial performance and strategic initiatives that enhance shareholder value. While technical indicators suggest caution, the company's strong cash flow and recent dividend increase are positive factors. Challenges in revenue growth and specific segments like Petroleum Additives need addressing for sustained performance.

Positive Factors

Strong Cash Flow Management

Effective cash flow management allows Newmarket to reinvest in growth opportunities, reduce debt, and provide shareholder returns, ensuring long-term financial stability.

Dividend Increase

Increasing dividends signals confidence in future earnings and enhances shareholder value, making the stock more attractive to income-focused investors.

Specialty Materials Segment Growth

Growth in the Specialty Materials segment indicates successful strategic investments and diversification, contributing to long-term revenue stability.

Negative Factors

Decline in Net Income

A decline in net income could indicate underlying operational challenges, potentially affecting future profitability and investment capacity.

Petroleum Additives Segment Decline

Decreasing sales in the Petroleum Additives segment highlight market challenges and could impact overall revenue growth if not addressed.

Challenges in Market Conditions

Market softness and shipment declines suggest external pressures that may hinder revenue growth and require strategic adjustments to maintain competitive positioning.

Newmarket Business Overview & Revenue Model

Company Description

Newmarket (NEU) is a technology-driven company specializing in providing advanced solutions for the hospitality industry. The company operates within the software and services sector, focusing on delivering innovative property management systems (PMS), booking engines, and revenue management tools designed to enhance operational efficiency and guest experiences for hotels and other accommodation providers. Newmarket's core products include its cloud-based PMS, which streamlines front-desk operations, and its integrated booking solutions that enable real-time reservations and revenue optimization.

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 updates and customer support. In addition to subscription revenue, Newmarket also earns income through implementation services, customized solutions for specific customer needs, and ongoing training for staff. Significant partnerships with major hospitality brands and technology vendors enhance its market reach and contribute to its earnings by enabling cross-promotional opportunities and bundled service offerings.

Newmarket Financial Statement Overview

Summary

Newmarket's financial performance is solid with strong profitability and cash flow metrics. Despite a decline in revenue growth, the company maintains healthy margins and a balanced capital structure. Continued focus on revenue expansion and careful leverage management will be crucial for sustaining long-term growth and stability.

Income Statement

Newmarket's income statement shows a strong gross profit margin of 31.86% TTM, indicating efficient production and pricing strategies. However, the net profit margin has slightly decreased to 16.33% TTM, reflecting some pressure on net earnings. Revenue growth has been negative recently, with a -1.25% decline TTM, which is a concern for future top-line expansion. The EBIT and EBITDA margins are healthy at 17.46% and 23.87% TTM, respectively, showcasing operational efficiency despite the revenue dip.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.51 TTM, indicating a balanced approach to leveraging. Return on equity is robust at 28.53% TTM, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 52.27% TTM, suggesting a stable financial structure with a good proportion of assets financed by equity. However, the historical trend shows fluctuations in leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis indicates a positive trajectory with a 3.75% growth in free cash flow TTM, highlighting effective cash management. The operating cash flow to net income ratio is 1.48 TTM, demonstrating strong cash generation relative to net income. The free cash flow to net income ratio is high at 0.89 TTM, indicating that the company efficiently converts its earnings into free cash flow, supporting potential reinvestment and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.74B	2.79B	2.70B	2.76B	2.36B	2.01B
Gross Profit	874.31M	886.35M	772.51M	640.50M	547.71M	595.03M
EBITDA	745.16M	758.43M	604.33M	465.22M	401.09M	441.62M
Net Income	448.20M	462.41M	388.86M	279.54M	190.91M	270.57M
Balance Sheet
Total Assets	3.23B	3.13B	2.31B	2.41B	2.56B	1.93B
Cash, Cash Equivalents and Short-Term Investments	102.45M	77.48M	111.94M	68.71M	459.22M	125.17M
Total Debt	861.94M	1.06B	733.60M	1.09B	1.23B	672.80M
Total Liabilities	1.54B	1.67B	1.23B	1.64B	1.80B	1.17B
Stockholders Equity	1.69B	1.46B	1.08B	762.41M	762.13M	759.82M
Cash Flow
Free Cash Flow	544.78M	462.27M	528.53M	52.45M	86.40M	190.84M
Operating Cash Flow	609.04M	519.59M	576.82M	108.62M	165.34M	284.15M
Investing Cash Flow	-64.26M	-738.80M	-48.29M	315.89M	-461.41M	-74.24M
Financing Cash Flow	-521.33M	185.81M	-487.59M	-439.36M	255.13M	-231.46M

Newmarket Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 764.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 764.81 is above the 20-day moving average (MA) of 758.43, below the 50-day MA of 772.41, and above the 200-day MA of 697.78, indicating a neutral trend. The MACD of -2.65 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 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
AXTA	74 Outperform	$6.65B	14.92	21.75%	―	-1.83%	40.64%
NEU	68 Neutral	$7.07B	15.90	29.23%	1.50%	-1.11%	5.15%
EMN	67 Neutral	$7.43B	10.86	12.24%	5.11%	-3.33%	-19.59%
ESI	65 Neutral	$6.39B	26.74	9.40%	1.23%	3.87%	-10.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$15.62B	-82.80	-0.21%	1.23%	-23.92%	90.47%
AVTR	45 Neutral	$7.62B	-92.61	-1.48%	―	-3.59%	-126.16%

Newmarket Corporate Events

Newmarket Announces Controller’s Resignation Effective November 26

On October 31, 2025, NewMarket Corporation announced the resignation of Ann P. Pietrantoni, the Company’s Controller and Principal Accounting Officer, effective November 26, 2025. Her departure is amicable and not due to any disagreements with the company. Timothy K. Fitzgerald, the Vice President and Chief Financial Officer, will temporarily take over her responsibilities as Principal Accounting Officer.

NewMarket Increases Quarterly Dividend by 9%

On October 30, 2025, NewMarket Corporation announced that its Board of Directors approved a 9% increase in the quarterly dividend, raising it from $2.75 to $3.00 per share, which equates to an annual dividend of $12.00 per share. This decision reflects the company’s commitment to providing value to its shareholders and may enhance its attractiveness in the market. The dividend is payable on January 2, 2026, to shareholders recorded by December 15, 2025.