NewMarket CorporationNEU
NYSE•Basic Materials•Specialty Chemicals
NewMarket Corporation, through its subsidiaries, primarily engages in the manufacture and sale of petroleum additives. It 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, greases, industrial gear fluids, and industrial specialty applications comprising turbine oils. The company 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, it engages in the marketing of antiknock compounds, as well as contracted manufacturing and related services; and owns and manages a real property in Virginia. The company operates in North America, Latin America, the Asia Pacific, Europe, the Middle East, Africa, India, and internationally. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.
NewMarket Corp (NEU) reported trailing twelve months revenue of $2.69B as of March 2026, a 3.5% decline year-over-year. Quarterly revenue reached $669.72M, reflecting a contraction in sales.
NewMarket Corp generated $410.87M in TTM net income, with quarterly EBITDA of $174.89M. The operating margin contracted from 22.8% to 21.4%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (21.4%) and net margin (17.6%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 18.0% a year ago, reflecting increased costs or interest expense.
NEU trades at a P/E of 17.3x (in line with broad market averages) and a P/S of 2.6x. The price-to-book ratio of 4.1x reflects a moderate premium to book value.
The company generated $99.68M in free cash flow over the trailing twelve months, a 7.1% decrease year-over-year, indicating cash generation ability. The balance sheet shows $3.50B in total assets with $939.61M in long-term debt against $1.73B in stockholders equity for a debt-to-equity ratio of 0.5. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~20.7% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 29.0% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 10.4% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 2.5% — net buybacks are reducing shares outstanding and boosting per-share value.