Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified NewMarket Corporation as such a stock due to the following factors:
- NEU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
- NEU has traded 46,160 shares today.
- NEU is trading at a new lifetime high.
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More details on NEU:
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives and real estate development businesses. It operates in two segments, Petroleum Additives and Real Estate Development. The stock currently has a dividend yield of 1.3%. NEU has a PE ratio of 14.9. Currently there are no analysts that rate NewMarket Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for NewMarket Corporation has been 39,600 shares per day over the past 30 days. NewMarket has a market cap of $3.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.82 and a short float of 12.8% with 29.13 days to cover. Shares are up 6.3% year to date as of the close of trading on Friday.
rates NewMarket Corporation as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, NEWMARKET CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 178.59% to $95.78 million when compared to the same quarter last year. In addition, NEWMARKET CORP has also vastly surpassed the industry average cash flow growth rate of -11.07%.
- NEU's debt-to-equity ratio of 0.80 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that NEU's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.63 is high and demonstrates strong liquidity.
- NEWMARKET CORP has improved earnings per share by 17.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEWMARKET CORP increased its bottom line by earning $17.81 versus $15.07 in the prior year. This year, the market expects earnings to be in line with last year ($17.81 versus $17.81).
- You can view the full NewMarket Corporation Ratings Report.