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Newmarket
(NYSE:NEU)
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Rating:76Outperform
Price Target:
$1,087.00
▲(17.47% Upside)
Action:Reiterated
Date:08/17/26
NEU scores well primarily on strong financial quality—especially free cash flow generation and solid margins—supported by a constructive earnings call highlighting improved leverage and continued capital returns. The score is moderated by stretched technical conditions (overbought signals) and a valuation that appears reasonable but not notably cheap given the modest dividend yield.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow gives NewMarket resources to fund investment, reduce financial risk, and return capital. Consistent cash conversion since 2023 supports resilience, although historical volatility remains a consideration.
Negative Factors
Limited Core Segment Growth
Petroleum Additives remains the core business, so limited first-half growth constrains overall expansion if volumes and mix do not improve. Reliance on a mature, cyclical end market may make sustained earnings growth more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow gives NewMarket resources to fund investment, reduce financial risk, and return capital. Consistent cash conversion since 2023 supports resilience, although historical volatility remains a consideration.
Read all positive factors
Newmarket Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit for each business segment, making it clear which units generate the most earnings and which have weaker margins, and helping you judge overall profitability, operational efficiency, and where margin improvements could materialize.
Shows operating profit for each business segment, making it clear which units generate the most earnings and which have weaker margins, and helping you judge overall profitability, operational efficiency, and where margin improvements could materialize.
Data provided by:
The Fly
The FlyNewmarket (NEU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.56B
Dividend Yield1.27%
Average Volume (3M)107.63K
Price to Earnings (P/E)19.9
Beta (1Y)0.70
Revenue Growth-1.31%
EPS Growth-7.93%
CountryUS
Employees2,050
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)46.39
Shares Outstanding9,196,406
10 Day Avg. Volume116,845
30 Day Avg. Volume107,628
Financial Highlights & Ratios
PEG Ratio-1.97
Price to Book (P/B)3.63
Price to Sales (P/S)2.37
P/FCF Ratio13.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$2.47B
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...
How the Company Makes Money
NewMarket makes money primarily by selling petroleum additives, with revenue largely driven by volumes sold and the price/mix of additive formulations delivered to customers. Its core revenue stream comes from fuel additives (used to enhance gasol...
Newmarket Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive picture: meaningful quarter-over-quarter net income and EPS gains, strong Q2 Specialty Materials results, solid shareholder returns, and an improved leverage metric (net debt/EBITDA = 1.0x). However, headwinds remain from Middle East supply disruptions, reliance on surcharges to protect margins, flat year-to-date petroleum additives sales, and some margin/comparability pressures in Specialty Materials related to the Calca acquisition. On balance, the positive operational and financial highlights outweigh the challenges.Positive Updates
Strong Quarterly Net Income and EPS Growth
Net income for Q2 2026 was $134 million (up $23M, +20.7% vs Q2 2025) and EPS was $14.54 (up from $11.84, +22.8%). Net income for the first half of 2026 was $252 million (up $15M, +6.3% YoY) and EPS for H1 was $27.14 (up +8.1%).
Negative Updates
Supply Chain Disruptions and Higher Input Costs
Conflict-related supply chain disruptions in the Middle East increased costs across the P&L, prompting management to implement surcharges. These disruptions are a continuing risk and required temporary pricing actions to protect margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Net Income and EPS Growth
Net income for Q2 2026 was $134 million (up $23M, +20.7% vs Q2 2025) and EPS was $14.54 (up from $11.84, +22.8%). Net income for the first half of 2026 was $252 million (up $15M, +6.3% YoY) and EPS for H1 was $27.14 (up +8.1%).
Read all positive updates
Company Guidance
Management's guidance was focused on long‑term value and operational resilience, including the expectation that expanded Specialty Materials capacity for ammonium perchlorate and high‑purity hydrazine will come online toward the end of 2026, continued efficiency and cost management, and targeted investments in technology and the supply chain; they highlighted financial flexibility with net debt-to-EBITDA of 1.0x as of June 30, 2026 and the ability to return $182 million to shareholders in H1 (dividends $56M, share repurchases $126M). They tied this outlook to recent results — Q2 net income $134M ($14.54/sh) and YTD net income $252M ($27.14/sh); Petroleum Additives Q2 sales $676M and operating profit $149M (H1 sales $1.3B; H1 operating profit $284M); Specialty Materials Q2 sales $67M and operating profit $22M (H1 sales $125M; H1 operating profit $35M) — and noted surcharges implemented to offset higher supply‑chain costs.Newmarket Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74B | 2.73B | 2.79B | 2.70B | 2.76B | 2.36B |
| Gross Profit | 863.73M | 857.40M | 886.35M | 772.51M | 640.50M | 547.71M |
| EBITDA | 671.37M | 722.68M | 758.43M | 604.33M | 465.22M | 401.09M |
| Net Income | 433.37M | 418.75M | 462.41M | 388.86M | 279.54M | 190.91M |
Balance Sheet | ||||||
| Total Assets | 3.62B | 3.49B | 3.13B | 2.31B | 2.41B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 93.60M | 77.60M | 77.48M | 111.94M | 68.71M | 459.22M |
| Total Debt | 939.93M | 976.70M | 1.06B | 733.60M | 1.09B | 1.23B |
| Total Liabilities | 1.78B | 1.71B | 1.67B | 1.23B | 1.64B | 1.80B |
| Stockholders Equity | 1.84B | 1.78B | 1.46B | 1.08B | 762.41M | 762.13M |
Cash Flow | ||||||
| Free Cash Flow | 498.68M | 491.33M | 462.27M | 528.53M | 52.45M | 86.40M |
| Operating Cash Flow | 598.75M | 568.97M | 519.59M | 576.82M | 108.62M | 165.34M |
| Investing Cash Flow | -312.39M | -291.08M | -738.80M | -48.29M | 315.89M | -461.41M |
| Financing Cash Flow | -259.50M | -279.14M | 185.81M | -487.59M | -439.36M | 255.13M |
Newmarket Technical Analysis
Positive
925.33
Price Trends
835.33
Positive
773.35
Positive
725.24
Positive
Market Momentum
30.09
Positive
62.19
Neutral
17.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEU, the sentiment is Positive. The current price of 925.33 is above the 20-day moving average (MA) of 916.97, above the 50-day MA of 835.33, and above the 200-day MA of 725.24, indicating a bullish trend. The MACD of 30.09 indicates Positive momentum. The RSI at 62.19 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEU.
Newmarket Risk Analysis
Newmarket disclosed 21 risk factors in its most recent earnings report. Newmarket reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Newmarket Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.56B | 19.95 | 24.63% | 1.51% | -1.31% | -7.93% | |
71 Outperform | $7.79B | 22.46 | 14.59% | ― | -0.92% | -20.25% | |
70 Outperform | $8.24B | 18.84 | 7.42% | 4.91% | -4.30% | -46.24% | |
64 Neutral | $9.75B | -17.29 | -10.34% | ― | -1.57% | -183.83% | |
62 Neutral | $8.65B | 48.99 | 6.57% | 0.85% | 26.61% | -25.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $15.72B | 280.23 | 2.26% | 1.41% | 18.32% | ― |
* Basic Materials Sector Average
NEU
Newmarket
923.53
112.30
13.84%
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Newmarket Corporate Events
Dividends
NewMarket Declares Quarterly Dividend, Signaling Ongoing Confidence
Positive
Aug 13, 2026
On August 13, 2026, NewMarket Corporation announced that its board of directors had declared a quarterly cash dividend of $3.00 per share on its common stock. The dividend will be paid on October 1, 2026, to shareholders of record as of the close ...
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.