Is NEU a high-quality business?

AlphaMadera's AlphaQuality grade scores NewMarket Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how NEU compares to a Buffett-style quality bar.

What is NewMarket Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to NEU based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes NEU a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

NEU - NewMarket Corporation

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B+ 78.7 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

A- 81.2

5yr Avg ROIC 13.0% 73/100
Operating Margin Trend +2.64 pp/yr 100/100

Capital Efficiency

Weight: 15%

A 92.7

5yr Avg ROE 19.6% 91/100
5yr Share-Count CAGR -3.3% 96/100

Growth Quality

Weight: 25%

B 69.6

5yr Revenue CAGR 3.7% 50/100
5yr EPS CAGR 25.9% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

B+ 78.6

5yr FCF Margin 12.0% 75/100
5yr FCF/NI Conversion 0.83x 83/100

Balance Sheet

Weight: 10%

A 87.5

Net Debt / EBITDA 1.33x 80/100
Interest Coverage (EBIT/Int) 13.70x 91/100
Altman Z-Score 4.41 97/100

Stability

Weight: 5%

C 53.6

EPS Volatility (σ/μ) 0.42 41/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 3 trimmed.

Holders: 3
Avg Δ position: -54.2%
New buys: 0
Full exits: 0

Cooperman decreased -73%
Dalio decreased -53%
Greenblatt decreased -37%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.