NewMarket Corp Common Stock (NEU)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

In the Graham tradition, I start with what is known. NewMarket is a 2,050-employee specialty chemicals maker whose petroleum additives are qualified into engine oils, transmission fluids, and industrial lubricants. That creates switching costs and technical stickiness—not a wide moat, but a durable niche. Results show cyclicality. In fiscal Q2 2026, the quarter ended June 30, 2026, revenue was $747.1 million and net income was $133.8 million, or $14.54 per diluted share, up from $698.5 million and $111.2 million in fiscal Q2 2025, the quarter ended June 30, 2025. Fiscal Q1 2026 also improved. Yet annual figures are uneven: FY2025, the fiscal year ended December 31, 2025, revenue was $2.7 billion, net income $418.7 million, EPS $44.44, versus FY2024, the fiscal year ended December 31, 2024, revenue $2.8 billion, net income $462.4 million, EPS $48.22. So this is not a smooth compounder. Financial health looks respectable. FairStock calculations show ROE of 25.12%, ROCE of 11.08%, debt-to-equity of 0.51, an Altman Z-Score of 4.02 and a Piotroski F-Score of 7/9. The supplied TTM free cash flow is $473.7 million, a 5.7% FCF yield. But the price is the issue. At the $898.98 close on 2026-10-13, FairStock’s P/E is 19.35, P/B is 4.50, EV/EBITDA is 12.40 and PEG is 0.96. The Graham Number is only $457.18, producing a negative 96.64% margin of safety. FairStock score is 57/100 and the Lynch category is cyclical—Specialty Chemicals—because earnings follow the economic cycle. Quality is evident, but I see little bargain here; the stock already discounts continued profitability.

In plain English: NewMarket makes specialty chemical additives used in engine oils, transmission fluids, and industrial lubricants. The business looks financially strong: in the quarter ended June 30, 2026, sales and profit rose from a year earlier, and it generates solid cash with moderate debt. However, at the October 13, 2026 closing price, the shares appear expensive versus the company's profits and net assets, leaving little cushion if results slow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer