NEWMARKET CORP (NEU) Stock Fundamental Analysis
NYSE:NEU - New York Stock Exchange, Inc. - US6515871076 - Common Stock - Currency: USD
Taking everything into account, NEU scores 7 out of 10 in our fundamental rating. NEU was compared to 85 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making NEU a very profitable company, without any liquidiy or solvency issues. NEU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NEU was profitable.
NEU had a positive operating cash flow in the past year.
Each year in the past 5 years NEU has been profitable.
NEU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEU's Return On Assets of 14.72% is amongst the best of the industry. NEU outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 31.52%, NEU belongs to the top of the industry, outperforming 98.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.99%, NEU belongs to the top of the industry, outperforming 98.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEU is significantly above the industry average of 7.05%.
The last Return On Invested Capital (16.99%) for NEU is above the 3 year average (16.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 31.52% | ||
| ROIC | 16.99% |
ROA(3y)14.36%
ROA(5y)12.9%
ROE(3y)34.69%
ROE(5y)32.92%
ROIC(3y)16.97%
ROIC(5y)15.47%
1.3 Margins
Looking at the Profit Margin, with a value of 16.54%, NEU belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
NEU's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.17%, NEU belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
NEU's Operating Margin has improved in the last couple of years.
NEU has a Gross Margin (31.81%) which is in line with its industry peers.
NEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 16.54% | ||
| GM | 31.81% |
OM growth 3Y24.62%
OM growth 5Y6.58%
PM growth 3Y26.95%
PM growth 5Y7.37%
GM growth 3Y11.02%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEU is creating value.
The number of shares outstanding for NEU has been reduced compared to 1 year ago.
The number of shares outstanding for NEU has been reduced compared to 5 years ago.
The debt/assets ratio for NEU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.33 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU has a better Altman-Z score (4.33) than 88.24% of its industry peers.
NEU has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as NEU would need 2.10 years to pay back of all of its debts.
NEU has a Debt to FCF ratio of 2.10. This is amongst the best in the industry. NEU outperforms 89.41% of its industry peers.
NEU has a Debt/Equity ratio of 0.66. This is a neutral value indicating NEU is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, NEU perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
Although NEU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.96
WACC8.69%
2.3 Liquidity
A Current Ratio of 2.75 indicates that NEU has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.75, NEU is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that NEU should not have too much problems paying its short term obligations.
The Quick ratio of NEU (1.40) is better than 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.24% over the past year.
The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.27% in the past year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)19.24%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%37.95%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%1.76%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.70 indicates a reasonable valuation of NEU.
NEU's Price/Earnings ratio is a bit cheaper when compared to the industry. NEU is cheaper than 75.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, NEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NEU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NEU is valued a bit cheaper than the industry average as 75.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
The excellent profitability rating of NEU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.95%.
NEU's Dividend Yield is comparable with the industry average which is at 3.98.
Compared to the average S&P500 Dividend Yield of 2.51, NEU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of NEU grows each year by 6.59%, which is quite nice.
NEU has paid a dividend for at least 10 years, which is a reliable track record.
NEU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.59%
Div Incr Years6
Div Non Decr Years18
5.3 Sustainability
NEU pays out 20.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of NEU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.81%
EPS Next 2YN/A
EPS Next 3YN/A
564.04
+5.35 (+0.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.02%
Inst Owner Change1.72%
Ins Owners6.54%
Ins Owner Change6.34%
Market Cap5.35B
Analysts45
Price TargetN/A
Short Float %1.4%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend10.03
Dividend Growth(5Y)6.59%
DP20.81%
Div Incr Years6
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | N/A | ||
| P/S | 1.92 | ||
| P/FCF | 11.58 | ||
| P/OCF | 10.3 | ||
| P/B | 3.66 | ||
| P/tB | 7.53 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)48.21
EY8.55%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)48.71
FCFY8.64%
OCF(TTM)54.75
OCFY9.71%
SpS293.63
BVpS154.01
TBVpS74.94
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 31.52% | ||
| ROCE | 21.42% | ||
| ROIC | 16.99% | ||
| ROICexc | 17.49% | ||
| ROICexgc | 24.29% | ||
| OM | 21.17% | ||
| PM (TTM) | 16.54% | ||
| GM | 31.81% | ||
| FCFM | 16.59% |
ROA(3y)14.36%
ROA(5y)12.9%
ROE(3y)34.69%
ROE(5y)32.92%
ROIC(3y)16.97%
ROIC(5y)15.47%
ROICexc(3y)17.71%
ROICexc(5y)16.91%
ROICexgc(3y)20.83%
ROICexgc(5y)19.4%
ROCE(3y)21.39%
ROCE(5y)19.49%
ROICexcg growth 3Y13.97%
ROICexcg growth 5Y3.36%
ROICexc growth 3Y5.51%
ROICexc growth 5Y-1.33%
OM growth 3Y24.62%
OM growth 5Y6.58%
PM growth 3Y26.95%
PM growth 5Y7.37%
GM growth 3Y11.02%
GM growth 5Y2.04%
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 49.01% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 10.55 | ||
| Cash Conversion | 73.49% | ||
| Profit Quality | 100.33% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.33 |
F-Score5
WACC8.69%
ROIC/WACC1.96
Cap/Depr(3y)59.73%
Cap/Depr(5y)76.77%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.77%
Profit Quality(3y)85.17%
Profit Quality(5y)74.31%
High Growth Momentum
Growth
EPS 1Y (TTM)19.24%
EPS 3Y39.88%
EPS 5Y16.3%
EPS Q2Q%37.95%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.27%
Revenue growth 3Y5.75%
Revenue growth 5Y4.93%
Sales Q2Q%1.76%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.18%
EBIT growth 3Y31.78%
EBIT growth 5Y11.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.54%
FCF growth 3Y74.9%
FCF growth 5Y10.72%
OCF growth 1Y-9.92%
OCF growth 3Y46.49%
OCF growth 5Y9.03%