NewMarket Corporation (NEU)
Basic Materials · NYQ · US
Fundamentals
Valuation and ratings
NewMarket Corporation trades at USD771.99, which is 53% above the USD360.48 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 54 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About NewMarket Corporation
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.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$75.14M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$55.14M · 0.0% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$35.00M · 0.0% of book
- Joel Greenblatt, Gotham Asset Management, LLC$24.15M · 0.1% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$21.22M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is NewMarket Corporation (NEU) undervalued?
Against our discounted cash flow estimate of USD360.48, NEU at USD771.99 is 53% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own NEU?
10 of the institutions we track reported a position in NEU in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is NEU's P/E ratio?
NEU trades at 17.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for NEU, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.