NewMarket Is A Cash Cow

Summary

• Net sales recovered in 2021 from the coronavirus pandemic crisis and continued increasing in 2022.
• Both gross profit and EBITDA margins increased during the past quarter boosted by cost control initiatives along with price increases.
• The company's debt load doesn't represent a significant risk as inventories are highly inflated and cash from operations remains high.
• Aggressive share buybacks are perpetually increasing the position of shareholders holding the company's shares.
• The recent share price decline represents a good opportunity to acquire shares and hold them for the long term.

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Investment thesis

NewMarket Corporation (NYSE:NEU) is a company that can be bought and held for decades as it is a leading player in the petroleum additives industry and has very healthy profit margins, which allows

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.