Newmarket (NEU) AI Stock Analysis

• Market Cap: $6.74B
• Dividend Yield: 1.59%
• Average Volume (3M): 130.97K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.67
• 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: 139,709
• 30 Day Avg. Volume: 130,967
• 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: 1.11
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 10.03
• 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): $2.47B

• Rating: 68 Neutral
• Price Target: $732.00 ▲(1.57% 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

Cash generation

Consistent free cash flow growth and high cash conversion ratios provide durable internal funding for capex, acquisitions, dividends and buybacks. Strong cash generation lowers refinancing risk and enables sustained shareholder returns and strategic flexibility across business cycles.

Profitability & margins

High gross and operating margins alongside a robust ROE indicate structural pricing power and operational efficiency. These durable profitability metrics allow the company to fund R&D and targeted investments while maintaining returns to shareholders even if top-line growth temporarily softens.

Capital allocation discipline

Simultaneous debt reduction and increased shareholder distributions signal disciplined capital allocation. Reducing leverage while hiking dividends indicates management prioritizes balance sheet strength and predictable returns, supporting credibility with investors and preserving optionality for strategic moves.

Negative Factors

Revenue decline

Persistent slight top-line contraction is a structural concern: declining revenue limits economies of scale, constrains reinvestment and raises reliance on margin expansion or M&A to drive EPS. If the trend continues, sustaining long-term growth and returns becomes harder.

Petroleum Additives weakness

Declines in the core Petroleum Additives segment reduce a primary earnings driver. Shipment reductions and lower operating profit reflect demand softness and strategic pruning of low-margin business, which could structurally depress overall profitability and cash flow if not reversed.

Specialty Materials volatility & investment drag

While the Specialty Materials strategy targets higher-value markets, recent quarterly volatility and heavy investment (including the Calca acquisition) create near-term earnings pressure and execution risk. Integration costs and inconsistent contributions may weigh on margins over the medium term.

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 powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives, and engines in ocean-going vessels; driveline additives designed for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additives designed for products for industrial applications consisting of hydraulic fluids, grease, industrial gear fluids, and industrial specialty applications, such as turbine oils. It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers. In addition, the company engages in the antiknock compounds business, as well as contracted manufacturing and services activities; and owns and manages a real property in Virginia. It operates in North America, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and India. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

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. The company maintains healthy margins and a balanced capital structure, though revenue growth has been a challenge recently.

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: Positive
• Last Price: 720.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEU, the sentiment is Positive. The current price of 720.68 is above the 20-day moving average (MA) of 676.98, above the 50-day MA of 710.34, and below the 200-day MA of 722.01, indicating a neutral trend. The MACD of -3.67 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 94.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEU.

Newmarket Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	77 Outperform	$7.31B	16.21	21.75%	―	-1.83%	40.64%
EMN	72 Outperform	$8.95B	19.14	―	5.33%	-3.33%	-19.59%
ESI	71 Outperform	$7.24B	30.30	9.40%	1.25%	3.87%	-10.30%
NEU	68 Neutral	$6.74B	15.15	29.23%	1.59%	-1.11%	5.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$19.85B	-98.00	-0.21%	1.10%	-23.92%	90.47%
AVTR	48 Neutral	$7.60B	-88.59	-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.

The most recent analyst rating on (NEU) stock is a Buy with a $860.00 price target. To see the full list of analyst forecasts on Newmarket stock, see the NEU Stock Forecast page.