NewMarket Corporation (NEU)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
NewMarket Corporation (NEU) trades at $796.86 with AI Score 89/100 (Grade A+). NewMarket Corporation specializes in petroleum additives, serving diverse industries globally. Market cap: $7.33B, Sector: Basic materials.
Price live · AI analysis from May 6, 2026Analyst Coverage for NEU: NEU does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates NEU against Basic Materials peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
NEU: 1/1 perspectives are bullish.
How is this calculated? →NewMarket Corporation (NEU) Materials & Commodity Exposure
NewMarket Corporation, established in 1887, is a global leader in the petroleum additives business, providing specialized lubricant and fuel additives. Operating across North America, Asia Pacific, and Europe, the company supports various industries with solutions enhancing vehicle and industrial performance, maintaining a strong market presence with a P/E ratio of 15.5.
What Is the Investment Thesis for NEU?
NewMarket Corporation presents a compelling investment case based on its established market position and consistent profitability. With a market capitalization of $7.33B and a profit margin of 15.3%, the company demonstrates financial stability. The dividend yield of 1.67% offers a steady return for investors. Key value drivers include the increasing demand for high-performance additives in both automotive and industrial sectors. Growth catalysts involve expanding the company's presence in emerging markets and developing innovative additive solutions that meet stringent environmental standards. Potential risks include fluctuations in raw material costs and evolving regulatory landscapes. Investors should monitor these factors to assess the long-term viability of NEU.
Based on FMP financials and quantitative analysis
NEU Key Highlights
- Market capitalization of $7.33B, reflecting substantial investor confidence.
- P/E ratio of 15.5, indicating a reasonable valuation compared to earnings.
- Profit margin of 15.3%, showcasing efficient operations and strong pricing power.
- Gross margin of 31.3%, highlighting effective cost management in production.
- Beta of 0.50, suggesting lower volatility compared to the overall market.
Who Are NEU's Competitors?
NEU is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| WLK Westlake Corporation | $74.72 | -0.07% | $9.57B | — |
| ESI Element Solutions Inc. | $42.59 | -2.41% | $10.38B | 68 |
| IAG IAMGOLD Corporation | $16.43 | -0.75% | $9.50B | 61 |
| GGB Gerdau S.A. | $4.24 | +4.18% | $8.43B | 47 |
| SSL Sasol Limited | $9.79 | +1.08% | $6.28B | 52 |
| LWLG Lightwave Logic, Inc. | $7.46 | +1.29% | $1.15B | 69 |
| COOSF Carbios SAS | $6.50 | -9.09% | $109.66M | 69 |
| HGRAF HydroGraph Clean Power Inc. | $3.43 | -3.11% | $1.20B | 69 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NEU's Key Strengths?
- Established market position in the petroleum additives industry.
- Diverse product portfolio catering to various applications.
- Global presence with operations in multiple regions.
- Strong financial performance with consistent profitability.
What Are NEU's Weaknesses?
- Dependence on the petroleum industry, subject to oil price volatility.
- Exposure to fluctuating raw material costs.
- Potential impact from evolving environmental regulations.
- Limited diversification beyond petroleum additives.
What Could Drive NEU Stock Higher?
- Increasing demand for high-performance additives in automotive and industrial sectors.
- Expansion in emerging markets driving revenue growth.
- Launch of new eco-friendly additive technologies in Q4 2026.
- Strategic acquisitions enhancing product portfolio and market reach.
What Are the Key Risks for NEU?
- Fluctuations in raw material costs impacting profitability.
- Evolving environmental regulations increasing compliance costs.
- Economic downturns reducing demand for petroleum products.
- Increasing competition from other additive manufacturers.
What Are the Growth Opportunities for NEU?
- Expansion in Emerging Markets: NewMarket has a significant opportunity to expand its presence in rapidly growing economies in Asia Pacific and Latin America. These regions are experiencing increased demand for high-performance lubricants and fuels due to growing vehicle ownership and industrialization. By establishing strategic partnerships and distribution networks, NewMarket can capture a larger share of these markets. This expansion could increase revenue by 10-15% over the next five years.
- Development of Eco-Friendly Additives: With increasing environmental regulations, there is a growing demand for eco-friendly additives. NewMarket can invest in research and development to create innovative, sustainable solutions that meet these requirements. This includes developing additives that reduce emissions and improve fuel efficiency. Successfully launching these products could position NewMarket as a leader in green technology and attract environmentally conscious customers.
- Strategic Acquisitions: NewMarket can pursue strategic acquisitions to expand its product portfolio and geographic reach. By acquiring smaller companies with complementary technologies or market access, NewMarket can accelerate its growth and strengthen its competitive position. This approach can provide access to new markets and innovative technologies, enhancing overall capabilities and market share.
- Enhanced Customer Relationships: Strengthening relationships with key customers can lead to increased sales and long-term partnerships. NewMarket can invest in customer service and technical support to provide tailored solutions and build loyalty. This includes offering customized additive formulations and providing technical expertise to help customers optimize their operations. Stronger customer relationships can result in recurring revenue streams and increased market penetration.
- Investment in R&D: Continuous investment in research and development is crucial for maintaining a competitive edge in the petroleum additives industry. NewMarket can allocate resources to develop new additive technologies that improve fuel efficiency, reduce emissions, and enhance the performance of lubricants. This includes exploring nanotechnology and advanced materials to create innovative solutions. Successful R&D efforts can lead to patentable technologies and new product offerings, driving revenue growth and market leadership.
What Opportunities Does NEU Have?
- Expansion in emerging markets with growing demand for additives.
- Development of eco-friendly additives to meet environmental regulations.
- Strategic acquisitions to expand product portfolio and market reach.
- Strengthening customer relationships through tailored solutions.
What Threats Does NEU Face?
- Increasing competition from other additive manufacturers.
- Potential disruptions from technological advancements in alternative fuels.
- Economic downturns impacting demand for petroleum products.
- Stringent environmental regulations increasing compliance costs.
What Are NEU's Competitive Advantages?
- Specialized Expertise: Decades of experience in developing and manufacturing petroleum additives.
- Strong Customer Relationships: Long-standing relationships with major oil refining companies and OEMs.
- Global Reach: Operations in North America, Latin America, Asia Pacific, Europe, the Middle East, Africa, and India.
- Proprietary Formulations: Patented additive formulations that provide superior performance.
What Does NEU Do?
Founded in 1887 and headquartered in Richmond, Virginia, NewMarket Corporation has evolved into a prominent player in the petroleum additives industry. The company operates through its subsidiaries, developing, manufacturing, and distributing a wide range of additives for lubricants and fuels. These additives are crucial for enhancing the performance and extending the lifespan of vehicles and industrial equipment. NewMarket's lubricant additives are used in engine oils, transmission fluids, gear oils, hydraulic oils, and turbine oils, catering to passenger cars, motorcycles, heavy-duty commercial equipment, and ocean-going vessels. Their fuel additives improve oil refining processes and the performance of gasoline, diesel, and biofuels. NewMarket serves a diverse clientele, including oil refining companies, original equipment manufacturers (OEMs), government entities, and individual consumers across North America, Latin America, Asia Pacific, Europe, the Middle East, Africa, and India. The company also engages in the antiknock compounds business and provides contracted manufacturing services. With a strong focus on innovation and customer needs, NewMarket continues to adapt its product offerings to meet evolving industry standards and environmental regulations, solidifying its position as a key supplier in the global additives market.
What Products and Services Does NEU Offer?
- Develops lubricant additives for vehicle and industrial applications.
- Offers fuel additives to enhance oil refining and fuel performance.
- Provides additives for engine oils, transmission fluids, and gear oils.
- Supplies additives for hydraulic oils and turbine oils.
- Engages in the antiknock compounds business.
- Offers contracted manufacturing and services activities.
- Manages real property in Virginia.
How Does NEU Make Money?
- Develops and manufactures petroleum additives.
- Sells additives to oil refining companies, OEMs, and other customers.
- Provides contracted manufacturing services.
- Generates revenue through product sales and service contracts.
What Industry Does NEU Operate In?
NewMarket Corporation operates within the specialty chemicals industry, specifically focusing on petroleum additives. This sector is characterized by continuous innovation and stringent regulatory requirements. The global market for lubricant additives is driven by the increasing complexity of engine designs and the demand for improved fuel efficiency. NewMarket competes with companies like Westlake Corporation (WLK) and Element Solutions Inc. (ESI), striving to differentiate itself through technological advancements and customer-focused solutions. The industry is also influenced by environmental regulations, pushing companies to develop eco-friendly additives.
Who Are NEU's Key Customers?
- Oil refining companies.
- Original equipment manufacturers (OEMs).
- Government entities.
- Individual consumers.
FY2026 estForward Outlook
Wall Street analysts project NewMarket Corporation revenue of about $2.47B for fiscal 2026, with EPS near $0.00.
F-Score 6/9Financial Health
NewMarket Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.65 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 24%Key Financial Metrics
Return on equity for NewMarket Corporation stands at 24.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.7%, showing how much profit it generates from its asset base. NEU trades at a trailing price-to-earnings ratio of 15.45, below the Basic Materials sector average of ~22x. Its free cash flow yield is 6.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.55 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.6%, the inverse of the P/E and a quick read on earnings relative to price.
NewMarket Corporation (NEU) Valuation Context
Valued at $7.33B, NEU is classified as a mid-cap stock. Relative to its peer group, NEU's quantitative score of 89/100 is above the peer average of 57/100.
Company Profile
NewMarket Corporation operates in the Chemicals - Specialty industry within the Basic Materials sector. It is headquartered in Richmond, US. The company is led by CEO Thomas E. Gottwald. NEU has traded publicly since 1980.
NEU Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in NewMarket's future performance, indicating that executives believe the stock is undervalued.
- Community sentiment has shifted positively, with discussions highlighting the company's strong market position in specialty chemicals.
- Analysts have noted robust demand in the agricultural sector, which could benefit NewMarket's product lines significantly.
- Recent product innovations are generating buzz, reflecting the company's commitment to growth and adaptation in a competitive landscape.
Bear Case
- Concerns over rising raw material costs are prevalent, which may squeeze margins and impact profitability in the near term.
- Some investors express skepticism about the sustainability of recent growth trends, fearing they may not hold in a fluctuating market.
- Social sentiment includes caution regarding potential regulatory challenges in the chemical industry, which could affect operations.
- Recent quarterly results showed slower-than-expected revenue growth, leading to doubts about the company's ability to meet future expectations.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · February 2026
NEU Latest News
-
Top 2 Materials Stocks That Are Ticking Portfolio Bombs
benzinga · May 26, 2026
NEU Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NEU.
Price Targets
Wall Street price target analysis for NEU.
NEU MoonshotScore
What does this score mean?
The MoonshotScore rates NEU's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Thomas E. Gottwald
CEO
Thomas E. Gottwald has served as the CEO of NewMarket Corporation, bringing extensive experience in the chemical and petroleum industries. His career includes various leadership roles within NewMarket and its subsidiaries, focusing on strategic planning, operational efficiency, and business development. Gottwald's expertise spans across multiple functional areas, including manufacturing, sales, and marketing. He is known for his commitment to innovation and sustainable growth, driving NewMarket's efforts to develop environmentally friendly additive solutions.
Track Record: Under Thomas E. Gottwald's leadership, NewMarket Corporation has maintained a strong market position and achieved consistent financial performance. Key milestones include expanding the company's global presence and launching innovative additive technologies. Gottwald has also overseen strategic acquisitions to enhance NewMarket's product portfolio and market reach. His focus on operational excellence has contributed to improved efficiency and profitability.
Common Questions About NEU (Basic Materials)
What does NewMarket Corporation do?
NewMarket Corporation specializes in the development, manufacture, and sale of petroleum additives. These additives are crucial for enhancing the performance and extending the lifespan of vehicles and industrial equipment. The company's products include lubricant additives for engine oils, transmission fluids, and gear oils, as well as fuel additives that improve oil refining processes and fuel efficiency. NewMarket serves a global clientele, including oil refining companies, OEMs, and government entities, operating across North America, Latin America, Asia Pacific, and Europe.
What do analysts say about NEU stock?
Analyst consensus on NewMarket Corporation (NEU) reflects a generally positive outlook, citing the company's strong market position and consistent financial performance. Key valuation metrics, such as the P/E ratio of 15.5, suggest a reasonable valuation compared to earnings. Growth considerations include the increasing demand for high-performance additives and the company's expansion in emerging markets. However, analysts also note potential risks, such as fluctuations in raw material costs and evolving environmental regulations. Investors should conduct their own due diligence to assess the long-term viability of NEU.
What are the main risks for NEU?
NewMarket Corporation faces several key risks, including fluctuations in raw material costs, which can impact profitability. Evolving environmental regulations pose a challenge, requiring investments in compliance and the development of eco-friendly additives. Economic downturns can reduce demand for petroleum products, affecting revenue. Additionally, increasing competition from other additive manufacturers puts pressure on market share and pricing. These risks require careful monitoring and strategic management to mitigate their potential impact on NewMarket's financial performance.
What are the key factors to evaluate for NEU?
NewMarket Corporation (NEU) holds an AI score of 89/100 (high). P/E: 15.5x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does NEU data refresh on this page?
NEU prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NEU's recent stock price performance?
NewMarket Corporation (NEU) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established market position in the petroleum additives industry. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider NEU overvalued or undervalued right now?
NewMarket Corporation (NEU) trades at 15.5x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying NEU?
Before investing in NewMarket Corporation (NEU), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and is subject to change.
- This analysis is for informational purposes only and does not constitute investment advice.