📊 NEU Key Takeaways
Is Newmarket Corp. (NEU) a Good Investment?
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.
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.
Why Buy Newmarket Corp. Stock? 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
- 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
- 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
- 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
- Quarterly revenue trends and gross margin stability
- Free cash flow sustainability and debt reduction trajectory
- Cash balance improvement and working capital management
- Revenue growth (YoY)
- Free cash flow margin
Newmarket Corp. (NEU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.53x 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. appears fundamentally strong 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 |
|---|---|---|---|
| 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.
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined 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. 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: 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. 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 $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: 14%), 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 Materials stocks?
Vs Materials sector averages: Net margin 15.4% (avg: 10%), ROE 23.5% (avg: 14%), current ratio 2.53 (avg: 1.6).