NewMarket vs Stepan
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KIRA’s take AI analyst
I put NewMarket and Stepan side by side, using each one’s latest annual report. Here is what stands out:
- NewMarket is the larger business, with $2.7B of revenue in fiscal 2025 against $2.3B for Stepan.
- Stepan grew revenue faster (7.0%, against −2.2%).
- NewMarket kept more of each dollar of sales as operating profit (20.0% operating margin, against 3.4%).
- NewMarket turned more of its sales into free cash flow (18.0% FCF margin, against 1.1%).
- NewMarket earned a higher return on the capital invested in it (16.3%, against 3.6%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
NewMarket
NEU
9/11
5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Stepan
SCL
2/11
Revenue growthPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | NEU FY25 | SCL FY25 |
|---|---|---|
| Size | ||
| Market cap | $8.1B | $1.5B |
| Revenue | $2.7B | $2.3B |
| Free cash flow | $491M | $25.4M |
| Net income | $419M | $46.9M |
| Growth | ||
| Revenue growth | −2.2% | 7.0% |
| 5-year growth | 6.3% | 4.5% |
| Share count change | −1.8% | −0.2% |
| Profitability | ||
| Gross margin | 31.5% | 11.6% |
| Operating margin | 20.0% | 3.4% |
| Net margin | 15.4% | 2.0% |
| FCF margin | 18.0% | 1.1% |
| Return on capital | 16.3% | 3.6% |
| Return on equity | 25.9% | 3.9% |
| Balance sheet | ||
| Net debt | $824M | $494M |
| Net debt / EBITDA | 1.2x | 2.4x |
| Dividends and buybacks | $183M | $35.0M |
| Valuation & quality | ||
| P/E | 18.9x | — |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.