📊 NEU Key Takeaways
Is NEU a Good Investment? Thesis Analysis
NewMarket Corp demonstrates exceptional financial fundamentals with 15.4% net margin, 23.5% ROE, and outstanding free cash flow of $491.3M (18% of revenue), indicating a high-quality business with strong capital returns. However, 2.2% revenue decline and constrained cash position ($77.6M) relative to $883.4M in debt present near-term headwinds that prevent a stronger rating.
Why Buy NEU? Key Strengths
- Exceptional profitability and capital efficiency: 31.5% gross margin, 20% operating margin, 23.5% ROE, and 12% ROA
- Superior cash generation: $491.3M free cash flow with 18% FCF margin demonstrates earnings quality and financial flexibility
- Solid financial stability: 2.53x current ratio, 13.7x interest coverage ratio, and manageable 0.50x debt/equity provide strong safety margin
NEU Investment Risks to Consider
- Revenue contraction of 2.2% YoY indicates market headwinds in cyclical industrial chemicals sector
- Thin cash position of $77.6M relative to $883.4M long-term debt limits financial flexibility and refinancing cushion
- EPS decline of 7.8% despite flat net income growth suggests shareholder dilution or unfavorable capital allocation
Key Metrics to Watch
- Quarterly revenue trends and gross margin stability
- Free cash flow sustainability and debt reduction trajectory
- Cash balance improvement and working capital management
NEU Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.53x current ratio provides a solid financial cushion.
NEU Profitability Ratios
NEU vs Industrial Sector
How NEWMARKET CORP compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NEU Overvalued or Undervalued?
Based on fundamental analysis, NEWMARKET CORP appears fundamentally strong relative to the Industrial 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.
NEU Balance Sheet & Liquidity
NEU 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NEU Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $685.1M | $66.5M | $6.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NEU Capital Allocation
NEU SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEU's key strengths?
Claude: Exceptional profitability and capital efficiency: 31.5% gross margin, 20% operating margin, 23.5% ROE, and 12% ROA. Superior cash generation: $491.3M free cash flow with 18% FCF margin demonstrates earnings quality and financial flexibility.
What are the risks of investing in NEU?
Claude: Revenue contraction of 2.2% YoY indicates market headwinds in cyclical industrial chemicals sector. Thin cash position of $77.6M relative to $883.4M long-term debt limits financial flexibility and refinancing cushion.
What is NEU's revenue and growth?
NEWMARKET CORP reported revenue of $2.7B.
Does NEU pay dividends?
NEWMARKET CORP pays dividends, with $105.9M 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 $44.44.
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 rating reflects both perspectives for balanced insights.
Is NEU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NEWMARKET CORP has a BUY rating with 78% 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 23.5% (sector avg: 15%), net margin of 15.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy NEU stock in 2026?
Our dual AI analysis gives NEWMARKET CORP a combined BUY rating 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 $569.0M, with capital expenditures of $77.6M. FCF margin is 18.0%.
How does NEU compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 15.4% (avg: 10%), ROE 23.5% (avg: 15%), current ratio 2.53 (avg: 1.8).