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Quaker Chemical (KWR)
NYSE:KWR
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Quaker Chemical
(NYSE:KWR)
68Neutral
Quaker Chemical (KWR) vs. S&P 500 (SPY)
Market Cap
$1.89B
Dividend Yield1.79%
Average Volume (3M)172.82K
Price to Earnings (P/E)20.3
Beta (1Y)1.25
Revenue Growth-5.72%
EPS Growth-19.82%
CountryUS
Employees4,400
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.58
Shares Outstanding17,680,655
10 Day Avg. Volume120,967
30 Day Avg. Volume172,816
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)1.28
Price to Sales (P/S)0.00
P/FCF Ratio11.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$124.67Price Target Upside16.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Quaker Chemical Business Overview & Revenue Model
Company DescriptionQuaker Chemical Corporation, operating under the ticker KWR, is a global leader in process fluids, chemical specialties, and technical expertise serving a diverse set of industries including automotive, aerospace, industrial manufacturing, and steel. The company provides high-quality products such as lubricants, coatings, coolants, and cleaning fluids, which are essential in the production and maintenance processes of its clients. With a strong focus on innovation and sustainability, Quaker Chemical aims to enhance operational efficiencies and safeguard resources for its customers worldwide.
How the Company Makes MoneyQuaker Chemical generates revenue primarily through the sale of its specialized chemical products and services to a variety of industrial sectors. The company offers tailored solutions that enhance manufacturing processes and equipment performance, which are critical to its clients' operations. Revenue streams include the direct sale of high-performance fluids and chemical solutions, as well as service agreements for technical support and process optimization. Quaker Chemical's earnings are bolstered by strategic partnerships and long-term contracts with major industrial players, ensuring a steady demand for its customized solutions. The company's global presence and commitment to innovation further support its financial performance by allowing it to leverage emerging market opportunities and address evolving customer needs.
Quaker Chemical Financial Statement Overview
Summary
Quaker Chemical exhibits stable financial performance with strong cash flow management and moderate profitability. However, the recent decline in revenue and profit margins poses a concern, alongside increased debt levels.Income Statement
The income statement shows a stable revenue base with a slight decline in the TTM period compared to the previous year. Gross profit margin for TTM is 35.91%, which is solid, but there is a decline compared to the previous year. Net profit margin in the TTM period is 5.20%, indicating moderate profitability but reflects a decrease from prior periods. The EBIT and EBITDA margins also indicate healthy operational efficiency, albeit with a slight downward trend. Overall, the company maintains healthy margins, but the recent decline in revenue and profits poses a concern.75
Positive
Balance Sheet
The balance sheet demonstrates a moderate financial structure. The debt-to-equity ratio stands at 0.55, showing balanced leverage. The return on equity (ROE) for TTM is 6.81%, indicating moderate profitability relative to equity. The equity ratio is 52.02%, which reflects a stable proportion of equity financing. While the company maintains a strong equity base, the slight increase in debt levels over the recent periods warrants attention.70
Positive
Cash Flow
The cash flow statement highlights strong cash generation capabilities. The operating cash flow to net income ratio is 1.85 for TTM, indicating robust cash flow generation relative to earnings. Free cash flow for the TTM period, though decreased from the previous year, remains positive and substantial. The free cash flow to net income ratio also reflects strong cash conversion efficiency. Overall, the company demonstrates solid cash flow management, providing a cushion for operational and investment activities.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.81B | 1.84B | 1.95B | 1.94B | 1.76B | 1.42B | Gross Profit |
| 650.98M | 686.03M | 705.64M | 612.65M | 594.64M | 513.44M | EBIT |
| 167.12M | 194.71M | 214.50M | 144.64M | 150.47M | 127.07M | EBITDA |
| 251.80M | 194.71M | 290.11M | 239.42M | 253.22M | 138.74M | Net Income Common Stockholders |
| 94.34M | 116.64M | 112.75M | -17.81M | 121.37M | 39.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 186.22M | 188.88M | 194.53M | 180.96M | 165.18M | 181.83M | Total Assets |
| 2.66B | 2.61B | 2.71B | 2.82B | 2.96B | 2.89B | Total Debt |
| 757.19M | 737.82M | 788.97M | 979.77M | 919.68M | 915.11M | Net Debt |
| 570.97M | 548.93M | 594.44M | 798.81M | 754.51M | 733.27M | Total Liabilities |
| 1.28B | 1.26B | 1.33B | 1.54B | 1.57B | 1.57B | Stockholders Equity |
| 1.39B | 1.35B | 1.38B | 1.28B | 1.39B | 1.32B |
| Cash Flow | Free Cash Flow | ||||
| 149.19M | 215.86M | 240.22M | 13.26M | 27.48M | 160.49M | Operating Cash Flow |
| 174.30M | 204.58M | 279.02M | 41.79M | 48.93M | 178.39M | Investing Cash Flow |
| -60.53M | -76.42M | -27.62M | -40.19M | -49.13M | -71.39M | Financing Cash Flow |
| -118.27M | -122.66M | -238.61M | 24.67M | -13.46M | -75.25M |
Quaker Chemical Technical Analysis
Neutral
106.86
Price Trends
113.75
Negative
125.50
Negative
143.06
Negative
Market Momentum
-1.46
Negative
48.85
Neutral
60.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KWR, the sentiment is Neutral. The current price of 106.86 is above the 20-day moving average (MA) of 104.59, below the 50-day MA of 113.75, and below the 200-day MA of 143.06, indicating a neutral trend. The MACD of -1.46 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 60.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KWR.
Quaker Chemical Risk Analysis
Quaker Chemical disclosed 28 risk factors in its most recent earnings report. Quaker Chemical reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quaker Chemical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.76B | 15.18 | 11.76% | ― | 70.16% | ― | |
68 Neutral | $1.89B | 20.27 | 6.78% | 1.79% | -5.72% | -19.82% | |
66 Neutral | $2.22B | 84.06 | 2.21% | 1.74% | -7.91% | -81.73% | |
65 Neutral | $1.88B | 11.37 | -1.45% | 0.71% | -3.82% | -126.04% | |
50 Neutral | $1.98B | -1.06 | -21.29% | 3.61% | 1.95% | -30.61% | |
49 Neutral | $1.67B | 54.28 | 4.66% | 8.95% | -0.68% | ― | |
47 Neutral | $2.44B | ― | -28.05% | 2.00% | -4.31% | -1421.83% |
* Basic Materials Sector Average
Performance Comparison
KWR
Quaker Chemical
106.86
-86.60
-44.76%
IOSP
Innospec
88.99
-39.22
-30.59%
MTX
Minerals Technologies
59.38
-23.75
-28.57%
SSL
Sasol
3.86
-3.68
-48.81%
CC
Chemours Company
11.17
-16.31
-59.35%
PRM
Perimeter Solutions
11.89
3.92
49.18%
Quaker Chemical Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 0.80%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Quaker Houghton faces challenges with declining sales volumes and the impact of tariffs, but strategic acquisitions and market share gains provide positive momentum. The company's gross margin improvement and adjusted EBITDA growth indicate effective cost management despite external pressures.Q1-2025 Updates
Positive Updates
Market Share Gains
Despite a challenging global macroeconomic environment, Quaker Houghton successfully gained additional market share across all segments.
Strategic Acquisitions
Completed three strategic acquisitions, including Dipsol, enhancing the portfolio and expanding the addressable market.
Gross Margin Improvement
Gross margins improved by 120 basis points to 36.4% compared to the fourth quarter of 2024.
Adjusted EBITDA Growth
Generated $69 million of adjusted EBITDA in the first quarter, an increase of $4 million sequentially.
Net New Business Wins
Net new business wins are trending at the high end of the targeted annual range of 2% to 4%.
Negative Updates
Volume Decline
Sales volumes declined approximately 1.5% compared to the prior year due to softer market conditions.
Net Sales Decline
First quarter net sales were $443 million, 6% below the prior year or 3% lower on a constant currency basis.
Impact of Tariffs
Uncertainty regarding tariffs impacted customer decision-making and order patterns, contributing to softer market conditions.
Foreign Exchange Impact
Foreign exchange was a $4 million headwind year-over-year and a $1 million headwind sequentially.
EMEA and Americas Weakness
Continued soft macroeconomic environment in the Americas and EMEA segments.
Company Guidance
During Quaker Houghton's first quarter 2025 earnings call, the company provided guidance that included several key metrics and strategic initiatives. Despite a 1.5% decline in volume, Quaker Houghton estimated that their markets were down by a low to mid-single-digit percentage compared to the prior year. Net sales for the quarter were reported at $443 million, a 6% decrease from the previous year, or 3% lower on a constant currency basis. Gross margins improved by 120 basis points to 36.4%, and the company generated $69 million in adjusted EBITDA with an adjusted EBITDA margin of 15.6%. The company is advancing a $20 million cost program expected to deliver approximately $15 million of in-year benefits, primarily in SG&A. Quaker Houghton is also making strategic investments, including the acquisition of three companies, to enhance its portfolio and expand its addressable market. The outlook for 2025 includes expectations of revenue and earnings in line with 2024 levels, with anticipated market growth rates declining by a low-single-digit percentage. The company remains focused on leveraging its "local for local" strategy to mitigate the impacts of tariffs and trade uncertainties on its supply chain.Quaker Chemical Corporate Events
Executive/Board Changes
Quaker Chemical Announces Board Member Retirement
Neutral
May 16, 2025
On May 14, 2025, Quaker Chemical Corporation announced the retirement of Mr. Ramaswami Seshasayee from its Board of Directors, where he served since 2019. His departure was voluntary and not due to any disagreements with the company. Following his retirement, the board’s size will be reduced from twelve to eleven members.
The most recent analyst rating on (KWR) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Quaker Chemical stock, see the KWR Stock Forecast page.
Spark’s Take on KWR Stock
According to Spark, TipRanks’ AI Analyst, KWR is a Neutral.
Quaker Chemical’s overall stock score reflects a balanced view of its financial stability, technical weakness, and mixed earnings outlook. Strong cash flow management and strategic initiatives are offset by declining revenues, bearish technical indicators, and external market challenges.
To see Spark’s full report on KWR stock, click here.
Executive/Board ChangesShareholder Meetings
Quaker Chemical Holds Annual Shareholder Meeting
Neutral
May 8, 2025
On March 4, 2025, Quaker Chemical held its Annual Meeting where shareholders voted on several key proposals. Four directors were elected to serve until 2028, the compensation of named executive officers was approved, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for fiscal year 2025.
Spark’s Take on KWR Stock
According to Spark, TipRanks’ AI Analyst, KWR is a Neutral.
Quaker Chemical’s overall stock score reflects a balanced view of its financial stability, technical weakness, and mixed earnings outlook. Strong cash flow management and strategic initiatives are offset by declining revenues, bearish technical indicators, and external market challenges.
To see Spark’s full report on KWR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.