Stock fact sheet · data as of
NewMarket Corporation (NEU): fair value, margin of safety and Wheel Score
Basic Materials · Chemicals - Specialty · United States · Blend
Is NEU undervalued?
NewMarket Corporation (NEU) closed at 887.82 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 1,257.42, so the price sits 29% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 9 models disagree widely: DDM gives 176.57 while GLS Growth gives 2,823.25. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files NEU under Blend.
Nine valuation models for NEU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1,134.87 | +28% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 450.54 | -49% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 1,916.31 | +116% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 783.94 | -12% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2,823.25 | +218% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1,417.59 | +60% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 2,101.29 | +137% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 176.57 | -80% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 512.40 | -42% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -71.17 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - NEU passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 15.2%, ROE 23.5%, ROA 12.0% - with debt at 0.55 times equity and a free-cash-flow yield of 6.1%.
The dividend yield is 1.35% with a payout ratio of 25% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Petroleum Additives 90%, Specialty Materials 9%, Other Operating 1% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 15.2% |
|---|---|---|---|
| GLS Moat | 6.5 / 10 | ROE | 23.5% |
| Debt / equity | 0.55 | ROA | 12.0% |
| Free-cash-flow yield | 6.1% | Payout ratio | 25% |
| Institutions | 8 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 76: Good
NEU scores 76 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (10/15), the option premium on offer (18/20) and how easily the stock trades (12/20). Health (11/20) is the part holding the score back.
Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). Chain open interest is 2,455 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 127k shares a day on a market cap of $8.2B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 29% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 10 / 15 | moat 6.5/10 | |
| Premium | 18 / 20 | implied volatility 33% | |
| Stability | 12 / 20 | 127k shares/day, $8.2B cap, beta 0.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
NewMarket Corporation reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals - Specialty
The 12 companies below are the closest to NewMarket Corporation by market cap within the Chemicals - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WLK Westlake Corporation | 62.21 | 61.73 | -1% | 45Weak | $8.0B |
| ESI Element Solutions Inc | 35.53 | 11.90 | -199% | 57Fair | $8.7B |
| EMN Eastman Chemical Company | 63.87 | 64.37 | +1% | 73Good | $7.3B |
| AXTA Axalta Coating Systems Ltd. | 33.73 | 46.66 | +28% | 88Prime | $7.2B |
| SOLS Solstice Advanced Materials Inc. | 60.13 | 46.12 | -30% | 60Fair | $9.6B |
| ALB Albemarle Corporation | 98.18 | 69.68 | -41% | 58Fair | $11.6B |
| SXT Sensient Technologies Corporation | 132.85 | 76.23 | -74% | 52Fair | $5.7B |
| BCPC Balchem Corp | 170.53 | 79.03 | -116% | 60Fair | $5.4B |
| RPM RPM International Inc. | 97.95 | 92.95 | -5% | 73Good | $12.5B |
| CLMT Calumet Inc. | 58.24 | 10.34 | -463% | 45Weak | $5.1B |
| PRM Perimeter Solutions, Inc. | 27.49 | 1.20 | -2200% | 45Weak | $4.5B |
| CBT Cabot Corp. | 75.48 | 112.28 | +33% | 79Good | $3.9B |
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Start free See the Sunday ScanQuestions about NEU
Is NEU undervalued right now?
By the GLS models, moderately: at 887.82 the stock trades 29% below the average fair value of 1,257.42 (data as of 16 Oct 2026).
What is the Wheel Score of NEU and what does it mean?
NEU scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for NEU?
1,257.42 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does NewMarket Corporation report earnings next?
The next earnings report is due on 26 Oct 2026 (after the close), 10 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NEU have listed options, and how liquid are they?
Yes. The nightly snapshot found 784 listed contracts with 2,455 open interest across all expiries and implied volatility of 33% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.