One-glance verdict
Undervalued
$1,149.86 our estimate vs market $887.08
23% below our estimate, below the bear case
Fundamentals snapshot
NewMarket Corporation
NEU · NYQ · Basic Materials · Specialty Chemicals
Current price
$887.08
52-week range
$580.03 - $981.66
Market cap
$8.16B
Balance sheet
Watch
13.70x Strong cushion
Net debt $846.33M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.6% last year.
- Reward Returns 25.1% on equity, ahead of 83% of its peers.
- Risk Forward P/E (34.4x) is higher than trailing (18.9x) - earnings are expected to drop.
- Risk Stock trades 48.2% above its 5-year average P/E.
What this company does
NewMarket Corporation
NewMarket Corporation makes specialty chemicals called petroleum additives, which are essential ingredients mixed into products like engine oil and gasoline. The company makes most of its money selling these additives to customers who need them to make cars, trucks, and industrial machines run more efficiently and last longer. Because these additives are critical for the daily operation of global transportation and manufacturing, NewMarket serves a large and consistent market.
How the company got here
NewMarket's story begins in 1887 as a paper manufacturer called Albemarle Paper Manufacturing Company. A major turning point came in 1962 when it acquired the much larger Ethyl Corporation, a company that pioneered additives to make gasoline work better in engines. After this bold move, the company adopted the Ethyl name and eventually sold off its other businesses to focus on specialty chemicals. In 2004, the company was renamed NewMarket Corporation to reflect its new focus as a parent company for its petroleum additives businesses.
What it actually does
NewMarket doesn't sell products directly to everyday consumers; instead, it creates specialty chemicals called additives that are essential ingredients for other industrial companies. Think of them as vitamins for fuels and oils. These additives are blended into gasoline, diesel fuel, and lubricants to help engines run more smoothly, improve fuel economy (how far you can go on a gallon of gas), reduce harmful emissions, and protect machinery from wear and tear. Their customers are large oil companies, fuel blenders, and lubricant makers who use these additives in their own finished products.
Petroleum Additives
This is NewMarket's main business, making up the vast majority of its sales, and it's run by a subsidiary named Afton Chemical. This segment produces two key types of products: lubricant additives and fuel additives. Lubricant additives are mixed into engine oils, transmission fluids, and industrial greases to help moving metal parts work without damage. Fuel additives are blended into gasoline and diesel to help them burn cleaner and more efficiently.
Specialty Materials
This is a smaller but important part of NewMarket's business, operated through its subsidiaries American Pacific Corporation (AMPAC) and Calca Solutions. This segment creates highly specialized chemicals for the aerospace and defense industries. For example, they produce critical ingredients for solid rocket motors used in space launches and military applications, as well as essential propellants that help power advanced spacecraft. While this is a smaller slice of the company, it serves very specific, high-tech customers.
What management is betting on now
The company is focused on investing in technology to create new and better additives that meet evolving standards for emissions and fuel efficiency. They are also working to make their supply chain (the network for producing and delivering products) more efficient around the world. A key priority is growing the smaller Specialty Materials segment by expanding its production capacity to better support its aerospace and defense customers. Management also emphasizes disciplined financial management to provide long-term value for its shareholders (the owners of the company's stock).
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$99.24M
FY2024 Q4
$170.62M
FY2025 Q1
$107.30M
FY2025 Q2
$139.52M
FY2025 Q3
$112.26M
FY2025 Q4
$117.17M
FY2026 Q1
$99.68M
FY2026 Q2
$134.75M
Revenue
$747.09M
Net income
$133.75M
Diluted EPS
14.54
Operating cash flow
$162.12M
Free cash flow
$134.75M
Fetching…
Sources
Revenue
$669.72M
Net income
$118.07M
Diluted EPS
12.62
Operating cash flow
$124.03M
Free cash flow
$99.68M
Fetching…
Sources
Revenue
$635.40M
Net income
$81.28M
Diluted EPS
8.67
Operating cash flow
$145.17M
Free cash flow
$117.17M
Fetching…
Sources
Revenue
$690.31M
Net income
$100.27M
Diluted EPS
10.67
Operating cash flow
$142.41M
Free cash flow
$112.26M
Fetching…
Sources
Revenue
$698.51M
Net income
$111.24M
Diluted EPS
11.84
Operating cash flow
$161.08M
Free cash flow
$139.52M
Fetching…
Sources
Revenue
$700.95M
Net income
$125.95M
Diluted EPS
13.26
Operating cash flow
$120.31M
Free cash flow
$107.30M
Fetching…
Sources
Revenue
$654.65M
Net income
$110.74M
Diluted EPS
11.57
Operating cash flow
$185.24M
Free cash flow
$170.62M
Fetching…
Sources
Revenue
$724.95M
Net income
$132.32M
Diluted EPS
13.79
Operating cash flow
$116.55M
Free cash flow
$99.24M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1,149.86 vs current price $887.08
Our most-likely fair value is $1,149.86 a share — about 29.6% above today's price of $887.08, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $846.3M. Interest coverage 13.7x.
Net debt
$846.33M
Interest coverage
13.70x
NewMarket Corporation's profit covers its interest bill about 13.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
NEU
BASELINE
NewMarket Corporation
Total debt $939.93M Interest coverage 13.70x This is the baseline the peer rows are being compared against.
Total debt $2.12B Interest coverage 6.41x -53% vs NEU Carries about 2.1x less debt cushion than NEU.
Total debt $5.47B Interest coverage 4.37x -68% vs NEU Carries about 3.1x less debt cushion than NEU.
Total debt $1.48B Interest coverage 1.44x -89% vs NEU Carries about 9.5x less debt cushion than NEU.
Total debt $47.90M Interest coverage 142.09x +937% vs NEU Carries about 10.4x more debt cushion than NEU.
Total debt $923.81M Interest coverage 4.02x -71% vs NEU Carries about 3.4x less debt cushion than NEU.
What you should know
The case for and against NEU
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.6% last year.
-
Returns 25.1% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (34.4x) is higher than trailing (18.9x) - earnings are expected to drop.
-
Stock trades 48.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.94x
Forward P/E
34.36x
P/B
4.44x
P/S
2.97x
EV/EBITDA
12.29x
PEG ratio
5.64x
Profitability
How much profit each dollar creates
Gross margin
31.5%
Operating margin
23.9%
Net margin
15.8%
ROE
25.1%
ROA
11.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
2.25x
Quick ratio
1.12x
Total debt
$939.93M
Total cash
$93.60M
Growth
How the business has been compounding
Revenue TTM
$2.74B
Revenue 5Y CAGR
3.7%
EPS TTM
46.84
EPS 5Y CAGR
17.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$573.73M
Free CF TTM
$491.33M
FCF margin
17.9%
Dividend
Shareholder payout
Yield
1.4%
Payout ratio
25.3%
Last ex-div date
2026-09-15