NEWMARKET CORP (NEU) Stock Fundamental Analysis
NYSE:NEU - New York Stock Exchange, Inc. - US6515871076 - Common Stock - Currency: USD
NEU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. NEU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NEU is valued correctly, but it does not seem to be growing. NEU also has an excellent dividend rating. With these ratings, NEU could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year NEU was profitable.
NEU had a positive operating cash flow in the past year.
NEU had positive earnings in each of the past 5 years.
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 98.80% 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 98.80% of the companies in the same industry.
NEU had an Average Return On Invested Capital over the past 3 years of 16.97%. This is significantly above the industry average of 6.65%.
The 3 year average ROIC (16.97%) for NEU is below the current ROIC(16.99%), indicating increased profibility in the last year.
| 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
NEU's Profit Margin of 16.54% is amongst the best of the industry. NEU outperforms 93.98% of its industry peers.
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 90.36% 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.
In the last couple of years the Gross Margin of NEU has grown nicely.
| 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.
Compared to 5 years ago, NEU has less shares outstanding
The debt/assets ratio for NEU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.28 indicates that NEU is not in any danger for bankruptcy at the moment.
NEU's Altman-Z score of 4.28 is amongst the best of the industry. NEU outperforms 90.36% 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's Debt to FCF ratio of 2.10 is amongst the best of the industry. NEU outperforms 87.95% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that NEU is somewhat dependend on debt financing.
NEU has a Debt to Equity ratio (0.66) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for NEU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.95
WACC8.72%
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 74.70% 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.
NEU has a Quick ratio of 1.40. This is comparable to the rest of the industry: NEU outperforms 55.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
NEU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.24%, which is quite good.
Measured over the past years, NEU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.30% on average per year.
The Revenue has been growing slightly by 3.27% in the past year.
Measured over the past years, NEU shows a small growth in Revenue. The Revenue has been growing by 4.93% on average per year.
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
Based on the Price/Earnings ratio of 11.38, the valuation of NEU can be described as reasonable.
NEU's Price/Earnings ratio is rather cheap when compared to the industry. NEU is cheaper than 86.75% of the companies in the same industry.
NEU is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NEU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEU is cheaper than 67.47% of the companies in the same industry.
79.52% of the companies in the same industry are more expensive than NEU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.3 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
The excellent profitability rating of NEU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEU has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
NEU's Dividend Yield is comparable with the industry average which is at 3.28.
NEU's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of NEU is nicely growing with an annual growth rate of 6.59%!
NEU has been paying a dividend for at least 10 years, so it has 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.
NEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.81%
EPS Next 2YN/A
EPS Next 3YN/A
548.53
+0.22 (+0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners65.02%
Inst Owner Change-84.49%
Ins Owners6.54%
Ins Owner Change5.08%
Market Cap5.22B
Analysts45
Price TargetN/A
Short Float %1.13%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend10.03
Dividend Growth(5Y)6.59%
DP20.81%
Div Incr Years6
Div Non Decr Years18
Ex-DateN/A
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 | 11.38 | ||
| Fwd PE | N/A | ||
| P/S | 1.87 | ||
| P/FCF | 11.3 | ||
| P/OCF | 10.05 | ||
| P/B | 3.57 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)48.21
EY8.79%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)48.56
FCFY8.85%
OCF(TTM)54.58
OCFY9.95%
SpS292.71
BVpS153.53
TBVpS74.7
PEG (NY)N/A
PEG (5Y)0.7
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 | 4.28 |
F-Score5
WACC8.72%
ROIC/WACC1.95
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%