NewMarket Corporation (NEU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+53.6%

$1,178.40

vs $766.95 price

Levered DCF

$1,364.08

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.72

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.46×	10.96×	13.5×	11.2×	19.35×	16.16×	21.37×	20.21×
P/B	3.63×	3.46×	4.86×	4.09×	4.84×	5.75×	7.95×	9.69×
P/S	2.37×	1.81×	1.94×	1.13×	1.56×	2.17×	2.48×	2.07×
EV / EBITDA	10.17×	7.95×	9.68×	8.9×	13.21×	11.13×	13.39×	14×
Gross margin	31.5%	31.8%	28.6%	23.2%	23.2%	29.6%	28.8%	25.6%
Operating margin	20.0%	21.2%	17.9%	12.8%	10.9%	15.5%	15.4%	12.8%
Net margin	15.4%	16.6%	14.4%	10.1%	8.1%	13.5%	11.6%	10.3%
Current ratio	2.53×	2.75×	2.85×	2.81×	1.91×	2.87×	2.85×	3×
Debt / equity	0.55×	0.72×	0.68×	1.43×	1.62×	0.89×	1.05×	1.57×
Interest coverage	13.7×	10.29×	12.93×	10.09×	7.53×	11.84×	11.54×	10.95×
Dividend yield	1.6%	1.9%	1.6%	2.7%	2.3%	1.9%	1.5%	1.7%
Payout ratio	25.3%	20.7%	21.9%	30.1%	45.0%	30.8%	32.1%	34.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	23.5%	31.6%	36.1%	36.7%	25.0%	35.6%	37.2%	47.9%
Return on invested capital	13.1%	16.9%	19.6%	14.3%	9.0%	15.6%	16.2%	16.6%
Return on assets	12.0%	14.8%	16.8%	11.6%	7.5%	14.0%	13.5%	13.8%
Free cash flow yield	7.6%	9.2%	10.1%	1.7%	2.3%	4.4%	5.1%	2.6%
Earnings yield	6.5%	9.2%	7.4%	9.0%	5.2%	6.2%	4.7%	4.9%
Enterprise value	$7.3B	$6B	$5.9B	$4.1B	$4.8B	$4.9B	$6B	$5.4B
Net debt / EBITDA	1.24×	1.29×	1.03×	2.19×	3.14×	1.24×	1.28×	1.8×
Cash conversion cycle (days)	108	105	101	121	112	115	100	103