TacticScaleWhat NewMarket Does & How It Makes Money (NEU)
Updated October 2026 · reflects NewMarket's latest reported financials
Maker of fuel and lubricant additives for engines and machinery. It earns most of its revenue selling petroleum additives for lubricants and fuels to industry, government, engine makers (OEMs) and other customers worldwide.
How NewMarket makes money
It earns most of its revenue selling petroleum additives for lubricants and fuels to industry, government, engine makers (OEMs) and other customers worldwide. Smaller income comes from marketing antiknock compounds, contract manufacturing services and a real property it owns in Virginia.
What NewMarket does
NewMarket Corporation is a specialty chemicals company focused mainly on petroleum additives. Its lubricant additives go into engine oils for passenger cars, motorcycles, heavy-duty on- and off-road commercial equipment, locomotives and ocean-going vessels. It also makes driveline additives for transmission, axle and off-road powertrain fluids, and industrial additives for hydraulic fluids, greases, industrial gear fluids and turbine oils. Its fuel additives improve the oil refining process and the performance of gasoline, diesel, biofuels and other fuels. It sells them to industry, government, original equipment manufacturers and individual customers. The company also markets antiknock compounds, provides contract manufacturing and owns and manages real property in Virginia. It operates across North America, Latin America, Asia Pacific, Europe, the Middle East, Africa and India. Founded in 1887, it is headquartered in Richmond, Virginia.
Products & services
- Engine oil additives
- Driveline additives (transmission, axle and off-road powertrain fluids)
- Industrial additives (hydraulic fluids, greases, gear and turbine oils)
- Fuel additives for gasoline, diesel and biofuels
- Antiknock compounds
- Contract manufacturing services
What is NewMarket worth?
On an owner-earnings DCF, NewMarket's most-likely value is about $671 versus a recent price near $893 (25% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$401) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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