NewMarket Corp NEU

Competitive advantage analysis · basic-materials

Corporate Default
Overall moat score
80/100
Strong

About NewMarket Corp

NewMarket Corporation, through its subsidiaries, primarily engages in the manufacture and sale of petroleum additives. It offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, … Full NEU analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 90.9th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Cost Leadership Position Operating margin at 92.7th percentile with strong OpEx control demonstrates cost leadership.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
67

Where NEU ranks in Specialty Chemicals

NewMarket Corp ranks #4 of 56 scored companies in Specialty Chemicals by moat score — the top 7%. The widest moat in the group is WD-40 Company (WDFC) at 81/100.

Moat scores for companies ranked near NEU in Specialty Chemicals
# Company Moat score Rating
1 WD-40 Company WDFC 81/100 Strong
2 Balchem Corporation BCPC 80/100 Strong
3 Linde plc LIN 80/100 Strong
4 NewMarket Corp NEU 80/100 Strong
5 Ecolab Inc. ECL 75/100 Moderate
6 Sherwin-Williams Company (The) SHW 74/100 Moderate
7 Oil-Dri Corporation Of America ODC 74/100 Moderate
8 Axalta Coating Systems Ltd. AXTA 72/100 Moderate
9 Cabot Corporation CBT 72/100 Moderate

See every General Corporate company ranked by moat score →

How NEU scores on the Corporate Default defenses

Pricing Power

Score 67 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 93 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 86 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 82 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 77 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 80 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding NEU's moat

What is NewMarket Corp's moat score?

NewMarket Corp (NEU) scores 80 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #4 of 56 scored companies in Specialty Chemicals, the top 7%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Specialty Chemicals. Its strongest defense is Cost Advantage (93/100) and its weakest is Pricing Power (67/100).

How does NewMarket Corp compare with other Specialty Chemicals companies?

NewMarket Corp ranks #4 of 56 scored companies in Specialty Chemicals by moat score. The widest moat in Specialty Chemicals is WD-40 Company (WDFC) at 81/100. The companies ranked closest are Linde plc (LIN) at 80 just above it and Ecolab Inc. (ECL) at 75 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Specialty Chemicals. The defenses are then weighted to produce the overall score out of 100.

Why is NewMarket Corp scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for NewMarket Corp?

The Corporate Default template measures 6 defenses, and NEU scores: Pricing Power (67), Cost Advantage (93), Customer Stickiness (86), Capital Efficiency (82), Resilience (77), Scale & Market Position (80). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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