📊 NEU Key Takeaways
Is Newmarket Corp. (NEU) a Good Investment?
Newmarket exhibits strong profitability margins (21.4% operating margin) and excellent free cash flow generation ($99.7M), supported by fortress-like debt service coverage (16.3x). However, declining revenue (-2.2% YoY) and diluted EPS (-7.8% YoY) coupled with weak returns on capital (ROE 6.8%, ROA 3.4%) indicate limited growth prospects and suboptimal capital deployment, positioning the company as a stable cash generator rather than a growth opportunity.
Strong margins, double-digit ROE/ROA, and an 18% free cash flow margin indicate a high-quality, cash-generative chemicals business with prudent leverage. Despite a modest revenue decline and lower EPS, liquidity and interest coverage remain robust, supporting durable profitability. If management stabilizes volumes while preserving pricing, earnings power should remain resilient.
Newmarket Corp. Key Strengths (NEU)
- Exceptional profitability margins with 21.4% operating margin and 17.6% net margin, demonstrating pricing power and operational efficiency in industrial chemicals
- Robust free cash flow generation of $99.7M with 14.9% FCF margin, providing financial flexibility and shareholder return capacity
- Fortress-like balance sheet with 16.3x interest coverage ratio and moderate 0.54x debt-to-equity ratio, indicating minimal financial distress risk
- High profitability (20% operating, 15.4% net margins)
- Robust free cash flow (18% FCF margin) with strong ROE/ROA
- Solid balance sheet and liquidity (0.50x D/E, 2.53x current ratio, 13.7x interest coverage)
NEU Stock Risks: Newmarket Corp. Investment Risks
- Declining top-line revenue (-2.2% YoY) signals deteriorating market demand or competitive pressures in the industrial chemicals sector
- Weak return on equity (6.8%) and return on assets (3.4%) reveal poor capital efficiency despite strong cash generation, indicating value destruction on the $3.5B asset base
- EPS declining (-7.8% YoY) despite flat net income suggests share dilution and masks underlying operational challenges
- Top-line contraction (-2.2% YoY) suggests cyclical demand or pricing pressure
- EPS decline (-7.8% YoY) implies potential dilution or operating deleverage risk
- Raw material/energy cost volatility and regulatory pressures could compress margins
Key Metrics to Watch
- Revenue stabilization and operating margin sustainability in next quarters
- Return on equity improvement and capital allocation decisions
- Free cash flow deployment strategy and share buyback execution
- Revenue growth (YoY)
- Free cash flow margin
Newmarket Corp. (NEU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.55x current ratio provides a solid financial cushion.
NEU Profit Margin, ROE & Profitability Analysis
NEU vs Materials Sector: How Newmarket Corp. Compares
How Newmarket Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Newmarket Corp. Stock Overvalued? NEU Valuation Analysis 2026
Based on fundamental analysis, Newmarket Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Newmarket Corp. Balance Sheet: NEU Debt, Cash & Liquidity
NEU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Newmarket Corp.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $40.44 reflects profitable operations.
NEU Revenue Growth, EPS Growth & YoY Performance
NEU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $669.7M | $118.1M | $12.62 |
| Q3 2025 | $690.3M | $100.3M | $10.67 |
| Q2 2025 | $698.5M | $111.2M | $11.63 |
| Q1 2025 | $696.7M | $107.7M | $11.23 |
| Q3 2024 | $667.2M | $111.2M | $11.60 |
| Q2 2024 | $685.1M | $99.6M | $10.36 |
| Q1 2024 | $696.7M | $97.6M | $10.09 |
| Q3 2023 | $667.2M | $63.2M | $6.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Newmarket Corp. Dividends, Buybacks & Capital Allocation
NEU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Newmarket Corp. (CIK: 0001282637)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NEU
What is the AI rating for NEU?
Newmarket Corp. (NEU) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEU's key strengths?
Claude: Exceptional profitability margins with 21.4% operating margin and 17.6% net margin, demonstrating pricing power and operational efficiency in industrial chemicals. Robust free cash flow generation of $99.7M with 14.9% FCF margin, providing financial flexibility and shareholder return capacity. ChatGPT: High profitability (20% operating, 15.4% net margins). Robust free cash flow (18% FCF margin) with strong ROE/ROA.
What are the risks of investing in NEU?
Claude: Declining top-line revenue (-2.2% YoY) signals deteriorating market demand or competitive pressures in the industrial chemicals sector. Weak return on equity (6.8%) and return on assets (3.4%) reveal poor capital efficiency despite strong cash generation, indicating value destruction on the $3.5B asset base. ChatGPT: Top-line contraction (-2.2% YoY) suggests cyclical demand or pricing pressure. EPS decline (-7.8% YoY) implies potential dilution or operating deleverage risk.
What is NEU's revenue and growth?
Newmarket Corp. reported revenue of $669.7M.
Does NEU pay dividends?
Newmarket Corp. pays dividends, with $28.0M distributed to shareholders in the trailing twelve months.
Where can I find NEU SEC filings?
Official SEC filings for Newmarket Corp. (CIK: 0001282637) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NEU's EPS?
Newmarket Corp. has a diluted EPS of $12.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NEU's fundamental grade?
Based on our AI fundamental analysis in May 2026, Newmarket Corp. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NEU stock overvalued or undervalued?
Valuation metrics for NEU: ROE of 6.8% (sector avg: 14%), net margin of 17.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NEU's AI grade for 2026?
Our dual AI analysis gives Newmarket Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NEU's free cash flow?
Newmarket Corp.'s operating cash flow is $124.0M, with capital expenditures of $24.4M. FCF margin is 14.9%.
How does NEU compare to other Materials stocks?
Vs Materials sector averages: Net margin 17.6% (avg: 10%), ROE 6.8% (avg: 14%), current ratio 2.55 (avg: 1.6).