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AI Spotlight on NEU
Company Description
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business.The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives, and engines in ocean-going vessels; driveline additives designed for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additives designed for products for industrial applications consisting of hydraulic fluids, grease, industrial gear fluids, and industrial specialty applications, such as turbine oils.It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers.
In addition, the company engages in the antiknock compounds business, as well as contracted manufacturing and services activities; and owns and manages a real property in Virginia.It operates in North America, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and India.NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.
Market Data
Last Price | 562.63 |
Change Percentage | -0.02% |
Open | 562.13 |
Previous Close | 562.73 |
Market Cap ( Millions) | 5359 |
Volume | 13290 |
Year High | 650 |
Year Low | 480 |
M A 50 | 518.87 |
M A 200 | 535.9 |
Financial Ratios
FCF Yield | 8.63% |
Dividend Yield | 1.78% |
ROE | 35.48% |
Debt / Equity | 72.46% |
Net Debt / EBIDTA | 129.42% |
Price To Book | 3.68 |
Price Earnings Ratio | 11.63 |
Price To FCF | 11.59 |
Price To sales | 1.92 |
EV / EBITDA | 8.36 |
News
- Feb -13 - NewMarket: Now Trading At A 10% Free Cash Flow Yield
- Feb -04 - NewMarket Corporation (NEU) Q4 2024 Earnings Call Transcript
- Jan -03 - NewMarket Corporation Schedules Conference Call and Webcast to Review Fourth Quarter and Full Year 2024 Financial Results
- Dec -16 - NewMarket Announces the Election of Executive Vice President and General Counsel
- Dec -12 - NewMarket Corporation Authorizes New Share Repurchase Program
- Oct -24 - NewMarket Corporation (NEU) Q3 2024 Earnings Call Transcript
- Oct -08 - NewMarket: Accelerating EBITDA After M&A Completion
- Oct -03 - NewMarket Announces the Retirement of Its Vice President and Chief Financial Officer and the Appointment of Successor
- Oct -01 - NewMarket Corporation Schedules Conference Call and Webcast to Review Third Quarter 2024 Financial Results
- Jul -30 - NewMarket Corporation (NEU) Q2 2024 Earnings Call Transcript
- Jul -29 - NewMarket Corporation Reports Second Quarter and First Half 2024 Results
- Jul -01 - NewMarket Corporation Schedules Conference Call and Webcast to Review Second Quarter 2024 Financial Results
- Jun -20 - NewMarket Corporation: Surprisingly Strong Start Of The Year Despite Expensive Acquisition
- Apr -25 - NewMarket Corporation (NEU) Q1 2024 Earnings Call Transcript
- Apr -25 - NewMarket Corporation Declares Quarterly Dividend
- Apr -24 - NewMarket Corporation Reports First Quarter 2024 Results
- Mar -28 - NewMarket Corporation Schedules Conference Call and Webcast to Review First Quarter 2024 Financial Results
- Mar -08 - 39 Upcoming Dividend Increases Including 2 Dividend Kings
- Feb -22 - NewMarket Corporation Increases Quarterly Dividend
- Feb -09 - CEO Stake in NewMarket Soars Despite Trim
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Petroleum Additives
Expected Growth : 4.5 %
What the company do ?
Petroleum additives from NewMarket Corporation are chemical formulations that enhance the performance of fuels and lubricants, improving efficiency, cleanliness, and overall engine performance.
Why we expect these perspectives ?
Growing demand for high-performance fuels and lubricants, increasing adoption of electric vehicles, and stringent emissions regulations drive the growth of petroleum additives market.
Segment nΒ°2 -> All Other
Expected Growth : 4.5 %
What the company do ?
All Other from NewMarket Corporation refers to the remaining business segments not classified under Petroleum Additives or Fuel Additives.
Why we expect these perspectives ?
The All Other segment, comprising lubricant and fuel ingredient businesses, is expected to grow driven by increasing demand for high-performance lubricants, expansion into new markets, and strategic partnerships.
Newmarket Corporation Products
Product Range | What is it ? |
---|---|
Petroleum Additives | NewMarket Corporation's petroleum additives are used to enhance the performance of fuels and lubricants, improving fuel efficiency, reducing emissions, and extending the life of engines and equipment. |
Fuel Additives | NewMarket Corporation's fuel additives are designed to improve fuel efficiency, reduce emissions, and enhance fuel stability, making them ideal for use in gasoline, diesel, and alternative fuels. |
Lubricant Additives | NewMarket Corporation's lubricant additives are used to enhance the performance of lubricants, reducing wear and tear on engines and equipment, and improving fuel efficiency. |
Specialty Chemicals | NewMarket Corporation's specialty chemicals are used in a variety of applications, including the manufacturing of fuels, lubricants, and other industrial products. |
NewMarket Corporation's Porter Forces
Threat Of Substitutes
NewMarket Corporation operates in the petroleum additives industry, which has a moderate threat of substitutes. While there are some substitutes available, they are not as effective as NewMarket's products, and the company's strong brand recognition and customer loyalty help to mitigate the threat.
Bargaining Power Of Customers
NewMarket Corporation's customers are largely industrial companies, which have limited bargaining power due to their dependence on the company's products. Additionally, the company's strong relationships with its customers and its ability to provide customized solutions help to reduce the bargaining power of customers.
Bargaining Power Of Suppliers
NewMarket Corporation relies on a few key suppliers for its raw materials, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate contracts help to mitigate this threat.
Threat Of New Entrants
The petroleum additives industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. Additionally, NewMarket Corporation's strong brand recognition and customer loyalty make it difficult for new entrants to gain traction in the market.
Intensity Of Rivalry
The petroleum additives industry is highly competitive, with several established players competing for market share. NewMarket Corporation faces intense competition from companies such as Afton Chemical and Chevron Oronite, which can lead to pricing pressure and reduced market share.
Capital Structure
Value | |
---|---|
Debt Weight | 40.52% |
Debt Cost | 6.40% |
Equity Weight | 59.48% |
Equity Cost | 6.51% |
WACC | 6.47% |
Leverage | 68.11% |
NewMarket Corporation : Quality Control
NewMarket Corporation passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
OLN | Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali β¦ |
IOSP | Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties β¦ |
RPM | RPM International Inc. manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and institutional roofing systems; sealants, air barriers, tapes, and β¦ |
CBT | Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions. The company offers reinforcing carbons used in β¦ |
BCPC | Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
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NewMarket
A-Score
1-Year Total Return ->
π₯
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Cabot
A-Score
1-Year Total Return ->
π₯
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RPM International
A-Score
1-Year Total Return ->
4
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Innospec
A-Score
1-Year Total Return ->
5
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Balchem
A-Score
1-Year Total Return ->
6
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