Newmarket (UG9) AI Stock Analysis

Newmarket

(XETRA:UG9)

Rating:―N/A

Action:N/A

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No summary available

Positive Factors

Strong profitabilityStrong and improving margins indicate NewMarket retains meaningful pricing power and favorable product economics in specialty chemicals. This profitability provides resources for technology investment, capacity expansion, dividends, and resilience when industry demand or input conditions become less favorable.

Negative Factors

Weak cash conversionThe large gap between earnings and operating cash flow indicates that recent reported profitability is not converting efficiently into liquidity. Persistently weak conversion could limit internally funded investment, debt reduction, and shareholder returns, increasing reliance on balance-sheet resources.

Newmarket (UG9) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 7.21B
Dividend Yield: 1.47%
Average Volume (3M): 2
Price to Earnings (P/E): 15.9
Beta (1Y): 0.19
Revenue Growth: -4.14%
EPS Growth: -1.37%
Country: Germany
Employees: 2,050
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Newmarket Business Overview & Revenue Model

Company Description

NewMarket Corporation, through its various subsidiaries, operates primarily in the specialty chemicals sector, specializing in the creation and supply of petroleum additives. The company furnishes an extensive selection of lubricant additives that ar...

Newmarket Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-10.13%|Next Earnings Date:Feb 02, 2027

Earnings Call SentimentPositive

The call was broadly positive, with higher net income, improved specialty materials performance, solid cash generation, shareholder returns, improved leverage, and ongoing capacity expansion. These positives outweighed the stated challenges of softer lubricant additive demand, shipment declines, supply chain disruptions, geopolitical uncertainty, tariffs, and specialty materials quarterly variability.

Positive Updates

Higher Net Income and Earnings Per Share

Third-quarter 2026 net income increased to $124 million, or $13.50 per share, from $100 million, or $10.67 per share, in the third quarter of 2025. Net income for the first nine months increased to $376 million, or $40.64 per share, from $337 million, or $35.78 per share. Higher operating profit and a reduced effective tax rate were the primary drivers of the increases.

Negative Updates

Lubricant Additives Market Softness

Broader market softness in lubricant additives resulted in an 8% decline in petroleum additives shipments during the third quarter of 2026.

Company Guidance

The company expects its capacity expansion projects for both ammonium perchlorate and high-purity hydrazine to be completed by the end of 2026; for the remainder of 2026, the surcharges and operational actions implemented earlier this year remain in place, the company will continue adjusting its approach as market conditions evolve, and it believes these actions position it well to continue delivering solid results.

Newmarket Risk Analysis

Newmarket disclosed 21 risk factors in its most recent earnings report. Newmarket reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Newmarket Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:UG9 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	76Outperform	$2.46B	20.34	9.15%	1.79%	2.87%	534.76%
EMN	65Neutral	$7.61B	11.73	10.63%	5.05%	0.40%	-6.58%
ESI	62Neutral	$8.31B	40.55	7.39%	0.93%	39.62%	-14.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NGVT	58Neutral	$2.55B	48.26	85.17%	―	-12.42%	―
ASH	56Neutral	$3.42B	65.51	2.77%	2.24%	-1.39%	―

* Basic Materials Sector Average

Performance Comparison

DE:UG9 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:UG9	Newmarket Corporation	710.00	60.52	9.32%
ASH	Ashland Global Holdings, Inc.	74.68	27.76	59.17%
EMN	Eastman Chemical Company	66.53	11.40	20.67%
IOSP	Innospec	99.89	27.13	37.28%
ESI	Element Solutions	34.27	7.41	27.57%
NGVT	Ingevity	74.32	20.48	38.04%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Newmarket AI Stock Analysis