Newmarket Corp

Industrials
Major Chemicals
www.newmarket.com

Earnings Score
Moat Score
Safety Score

Market Cap $5.14B
PE 12
Debt $1.09B
Cash $80.31M
EV $6.14B
FCF $424.00M

Earnings

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Sales & Net Margins

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Earnings	$430.55M
EBIT	$561.90M
ROE	32%
ROA	18%
FCF	$424.00M
Equity	$1.36B
Growth Stability	75%
PE	11.93
PEG	0.94
PB	3.76
P/FCF	12.11
P/S	1.85
Price/Cash	0.02
Debt/Equity	0.8
Debt/FCF	2.56
Net Margins	16%
Gross Margins	31%
Op. Margins	20%
Earnings CAGR	5%
Sales Growth YoY	9%
Sales Growth QoQ	2%
Sales CAGR	4%
FCF CAGR	8%
Equity CAGR	11%
Earnings Stability	0.33
Earnings Growth YoY	19%
Earnings Growth QoQ	19%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	8%
FCF CAGR 5Y	15%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	203%
Equity CAGR 3Y	27%
Market Cap	$5.14B
Revenue	$2.78B
Dividend Yield	2%
Payout Ratio	22%
Assets	$3.17B
Total Debt	$1.09B
Cash	$80.31M
Shares Outstanding	9.56M
EV	6.14B
Earnings Score	14%
Moat Score	96%
Safety Score	89%
Final Score	66%
Working Capital	735.68M
Current Ratio	2.83
Gross Profit	$855.79M
Shares Growth 3y	-3%
Equity Growth QoQ	10%
Equity Growth YoY	40%

Assets & ROA

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Stockholders Equity & ROE

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NewMarket Corp is a holding company that, through its subsidiaries, makes and sells petroleum additives. Petroleum additives are used in lubricating oils and fuels to enhance machine and automobile engine performance. The types of petroleum additives that NewMarket sells include engine oil additives and fuel additives. Engine oil additives are used to reduce friction and extend engine life for automobiles and heavy-duty commercial equipment. Fuel additives are mixed with gasoline and diesel fuels to increase automobile fuel economy and engine cleanliness. More revenue comes from the United States than any other geographic region.

SEC Filings

Direct access to Newmarket Corp (NEU) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Newmarket Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Newmarket Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability 33%

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Newmarket Corp Discounted Cash Flow

Fully customizable DCF calculator online for Newmarket Corp.

Years

Calculation mode

= $7.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$424M	$459M	$497M	$539M	$583M	$632M	$684M	$741M	$803M	$870M	$942M	$9.4B
DCF		$417M	$411M	$405M	$398M	$392M	$386M	$380M	$375M	$369M	$363M	$3.6B
Value	$7.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	10%	11%	12%	9%	10%	12%	13%	8%	10%	14%	16%
ROA	-	28%	26%	20%	17%	18%	17%	10%	15%	21%	18%
ROE	-	62%	50%	32%	48%	37%	36%	25%	37%	36%	32%

Good Net Margins (16.44%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.49	2.47	15.23	6.25	2.59	3.48	50.03	25.07	1.28	2.56
Debt over Equity	0.86	1.28	1.05	1	1.57	0.94	0.79	1.95	1.32	0.6	0.8
Growth Stability	-	-	-	80%	100%	100%	100%	75%	100%	100%	75%

Neutral Debt/FCF ratio (2.56)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.8)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (75%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-8%	-4%	7%	4%	-4%	-8%	17%	17%	-2%	8%
Earnings YoY growth	-	2%	2%	-22%	23%	8%	6%	-29%	46%	39%	13%
Equity YoY growth	-	-8%	25%	25%	-19%	39%	11%	0%	0%	41%	13%
FCF YoY growth	-	-19%	45%	-81%	211%	102%	-31%	-83%	35%	1K%	15%