NewMarket NEU
United StatesBasic Materials · Specialty ChemicalsUSD
0.00 USD (−100.0%)
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NewMarket Corp is a specialty chemical company that, through its subsidiary Afton Chemical, manufactures and sells additives for lubricants and fuels, with a business model based on high technical value products and long-term relationships with industrial customers.
Key points
from its scores- ✓Favourable backdrop8.2
- ✓Very solid balance sheet7.7
- ✓High-quality business7.2
- !Somewhat demanding valuation5.4
- !Modest dividend5.4
AI analysis
bottom line, main risk, context and newsBusiness quality and balance sheet justify the premium, but the forward P/E of 35.08 limits upside potential in the short term.
NewMarket shows solid fundamentals: ROE of 25.12%, ROIC of 23.56% and operating margin of 23.87% reflect a robust competitive moat in lubricant additives, with a healthy balance sheet (Net Debt/EBITDA 1.15) and earnings growth of 22.90%. Valuation is reasonable (P/E 19.49) although the forward P/E of 35.08 suggests the market already discounts a slowdown or lower future margins.
The main risk is concentration in the lubricant and fuel additives business, highly dependent on the automotive industry cycle and the energy transition towards electric vehicles, which could reduce structural demand in the long term.
Context and risks
No recent news and no material exposure to current macro factors. NewMarket is a specialty chemical company with a healthy balance sheet (Net Debt/EBITDA 1.15) and operating margin of 23.87%, so the rise in long-term rates and dollar strength do not materially affect its business or cost structure.
Is NewMarket stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Basic Materials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 19.5 | 19.2 | +2% |
| EV / EBITDA | 12.5 | 10.0 | +25% |
| Price / book | 4.5 | 2.3 | +100% |
| Price / sales | 3.0 | 2.2 | +38% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.4 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 0.00 USD, −100.0% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 19.5
- Forward P/E
- 35.1
- EV / EBITDA
- 12.5
- Price / book
- 4.5
- Price / sales
- 3.0
- PEG
- 5.64
- Market cap
- 8.3B USD
- Enterprise value
- 9.2B USD
Profitability
- ROE
- 25.1%
- ROA
- 11.1%
- ROIC (approx.)
- 23.6%
- Gross margin
- 31.5%
- Operating margin
- 23.9%
- Net margin
- 15.8%
- Free cash flow
- 435.5M USD
- FCF yield
- 5.2%
- Cash conversion
- 59%
Solvency
- Total debt
- 939.9M USD
- Net debt
- 846.3M USD
- Cash
- 93.6M USD
- EBITDA
- 733.0M USD
- Net debt / EBITDA
- 1.15
- Debt / equity
- 51.13
- Current ratio
- 2.25
- Quick ratio
- 1.12
Growth
- Revenue growth
- +7.0%
- Earnings growth
- +22.9%
- EPS (TTM)
- 46.47 USD
- EPS (forward)
- 25.82 USD
Dividend
- Dividend yield
- 1.3%
- Payout
- 25.3%
Risk and market
- Beta
- 0.56
- Analyst consensus
- none (0)
- Target price
- 0.00 USD
- 52-week range
- 580.03 – 981.66
Recent news
All NEU news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about NewMarket
Is NewMarket stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Basic Materials median (within 15%). Valuation score: 5.4 out of 10 (median for Basic Materials: 5.8). Average analyst target: 0.00 USD, −100.0% versus the price. This is not investment advice.
What score does NewMarket get on MeridIAn Screener?
It scores 6.7 out of 10, rank 398 of 2,130 (better than 80% of the companies analysed). Its strongest category is Risk & Context (8.2) and its weakest, Valuation (5.4). Analysis of 08/10/2026.
What is NewMarket's P/E ratio?
Its P/E is 19.5: the share price equals 19.5 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 35.1.
How much is NewMarket worth on the stock market?
Its market capitalisation is 8.3B USD and its enterprise value, debt included, is 9.2B USD.
How much debt does NewMarket have?
Its net debt (debt minus cash) is 846.3M USD. That is 1.15 times its EBITDA; the Basic Materials median is 1.41.
Does NewMarket pay a dividend?
Yes: its dividend yield is 1.32% and it pays out 25% of its earnings.
How has NewMarket stock performed over the last year?
It has risen 17.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 580.03 and 981.66 USD. Past performance does not guarantee future results.