NewMarket Corp (NEU) exhibits 31.5% gross margins and 16.6% return on invested capital within Materials (Major Chemicals), balanced against a 13.4x enterprise multiple and 4.8% implied options volatility.
Sustained 31.5% gross profitability converts into 20.0% operating margin and 16.6% ROIC, outpacing sector cost of capital.
ROIC: 16.6% // GM: 31.5%YoY revenue trajectory of -2.2% paired with 6.65% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -2.2% // FCF YLD: 6.65%Altman Z-Score of 4.77 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.77 // F-SCORE: 6/9Trading at 17.6x trailing P/E (16.4x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 17.6x // EV/EBITDA: 13.4xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $783.66 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Major Chemicals require continuous execution to defend 15.4% net margins.
NET MARGIN: 15.4% // D/E: 0.50x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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