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NewMarket Corporation (NewMarket) (NYSE: NEU) is a holding company and is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), American Pacific Corporation (AMPAC), Calca Solutions, LLC (Calca), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). Afton manufactures and sells petroleum additives, whil…
19.95% operating margin is respectable but not wide. ROIC at 15.22%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 2.2% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 21.60% to 15.22%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$2.69B
▼ -2.2% YoY
Net Income (TTM)
$411M
▼ -9.4% YoY
Op. Margin
19.57%
▼ -1.2pp YoY
ROIC
14.72%
▼ -6.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$484M
▲ +6.3% YoY
Op. Cash Flow (TTM)
$573M
▲ +9.5% YoY
Net Debt
$947M
Cash & Equiv.
$73M
5Y CAGR: +6.3%
5Y CAGR: +20.8%
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