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Quaker Chemical
(NYSE:KWR)
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Rating:61Neutral
Price Target:
$167.00
▲(0.66% Upside)
Action:Reiterated
Date:10/02/26
KWR scores in the low 60s primarily due to solid but uneven financial performance (healthy gross margins and manageable leverage, but volatile earnings and less consistent cash generation). The earnings call adds support with reaffirmed growth/margin targets and strong operational highlights, while technicals are neutral-to-soft short term and valuation is somewhat rich (P/E ~28 with a modest ~1.29% yield).
Positive Factors
Sticky recurring consumables model
Recurring process-fluid demand and embedded technical support can deepen customer relationships over time. Qualification requirements, production risk, and re-qualification burdens create switching friction, supporting retention and repeat purchasing across industrial manufacturing accounts.
Negative Factors
Volatile operating profitability
Healthy gross margins have not consistently translated into operating or bottom-line profits. Loss years and recent operating-margin compression make earnings power less predictable, potentially limiting the company’s ability to compound returns reliably through changing industrial conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Sticky recurring consumables model
Recurring process-fluid demand and embedded technical support can deepen customer relationships over time. Qualification requirements, production risk, and re-qualification burdens create switching friction, supporting retention and repeat purchasing across industrial manufacturing accounts.
Read all positive factors
Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.70B
Dividend Yield1.29%
Average Volume (3M)143.34K
Price to Earnings (P/E)27.9
Beta (1Y)1.15
Revenue Growth7.79%
EPS GrowthN/A
CountryUS
Employees4,700
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)5.63
Shares Outstanding17,207,703
10 Day Avg. Volume151,444
30 Day Avg. Volume143,342
Financial Highlights & Ratios
PEG Ratio9.60
Price to Book (P/B)1.75
Price to Sales (P/S)1.27
P/FCF Ratio29.77
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.77
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda13.45
Forecast
1Y Price Target
$192.00Price Target Upside15.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)7.86
Revenue Forecast (FY)$2.03B
Quaker Chemical Business Overview & Revenue Model
Company Description
Quaker Chemical Corporation is a global provider of specialized chemical formulations, which it develops, produces, and markets for a broad spectrum of heavy industrial and manufacturing applications. Its global operations are strategically divide...
How the Company Makes Money
Quaker Chemical (Quaker Houghton) makes money mainly by selling specialty chemical formulations (process fluids) and related technical services to industrial customers under ongoing supply relationships.
Key revenue streams and model:
- Sale of p...
Quaker Chemical Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: record adjusted EBITDA, double-digit regional growth in Asia, broad-based net share gains, a new China manufacturing start-up, a $250 million repurchase authorization, and transformation actions delivering run-rate savings. These positives were balanced against margin pressure from elevated and volatile raw material costs (base oils and container costs), higher SG&A, working capital outflows that reduced cash from operations, and some Americas operational headwinds. Management reiterated guidance for mid- to high-single-digit adjusted EBITDA growth for the year and a path to return gross margin above 36% by year-end, signaling confidence in recovery and execution despite near-term cost and timing headwinds.Positive Updates
Record Quarterly Adjusted EBITDA
Adjusted EBITDA of $85 million in Q2, the highest quarterly adjusted EBITDA in company history; adjusted EBITDA margin of 16%, up 40 basis points year-over-year and 90 basis points sequentially.
Negative Updates
Gross Margin Pressure from Elevated Raw Material Costs
Gross margin declined to 35.5% in Q2 (down year-over-year and sequentially), with a sequential decline of ~130 basis points due to product margin pressure from higher raw material costs (notably base oils and container costs); management expects Q3 gross margin to be roughly flat with Q2 while working through price recovery and inventory timing, with a target to return above 36% by year-end.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Adjusted EBITDA
Adjusted EBITDA of $85 million in Q2, the highest quarterly adjusted EBITDA in company history; adjusted EBITDA margin of 16%, up 40 basis points year-over-year and 90 basis points sequentially.
Read all positive updates
Company Guidance
Management guided that end markets should be flat to modestly positive in H2 2026, Q3 gross margin is expected to be roughly in line with Q2’s 35.5% and return to the 36%–37% target range by year‑end as index adjustments and price increases take effect, Q3 performance is expected to be in the range of Q2, and the company still expects meaningful revenue and mid‑ to high‑single‑digit adjusted EBITDA growth for full‑year 2026 while targeting sustained EBITDA margins above 18% over the next few years. This outlook is grounded in Q2 results of $533M net sales (+10% YoY) with volumes +7% and selling price/mix +1%, adjusted EBITDA $85M (16% margin, +40 bps YoY, +90 bps seq), gross margin 35.5% (down 130 bps seq), non‑GAAP EPS $2.19 (+28% YoY) and GAAP EPS $1.55, cash from operations $29M, Q2 capex $10M (FY guide 2.5%–3% of sales), expected ~$10M run‑rate savings from transformation, $250M repurchase authorization (~$24M repurchased in Q2), dividend increase ~4.3% ($9M paid in Q2) and $33M returned to shareholders in the quarter; interest expense was $10M, cost of debt ~4.4%, and the effective tax rate ~28%.Quaker Chemical Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.98B | 1.89B | 1.84B | 1.95B | 1.94B | 1.76B |
| Gross Profit | 679.65M | 679.37M | 686.03M | 705.64M | 612.65M | 594.64M |
| EBITDA | 260.54M | 144.53M | 280.18M | 285.81M | 120.16M | 255.87M |
| Net Income | 97.67M | -2.49M | 116.64M | 112.75M | -15.93M | 121.37M |
Balance Sheet | ||||||
| Total Assets | 2.85B | 2.80B | 2.61B | 2.71B | 2.82B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 155.09M | 179.83M | 188.88M | 194.53M | 180.96M | 165.18M |
| Total Debt | 911.07M | 928.61M | 737.82M | 788.97M | 991.80M | 929.66M |
| Total Liabilities | 1.47B | 1.42B | 1.26B | 1.33B | 1.54B | 1.57B |
| Stockholders Equity | 1.38B | 1.37B | 1.35B | 1.38B | 1.28B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 90.34M | 80.60M | 215.86M | 240.22M | 13.26M | 27.48M |
| Operating Cash Flow | 131.17M | 136.45M | 204.58M | 279.02M | 41.79M | 48.93M |
| Investing Cash Flow | -52.17M | -214.12M | -76.42M | -27.62M | -40.19M | -49.13M |
| Financing Cash Flow | -124.20M | 61.83M | -122.66M | -238.61M | 24.67M | -13.46M |
Quaker Chemical Technical Analysis
Negative
165.91
Price Trends
162.19
Negative
155.49
Positive
148.89
Positive
Market Momentum
-0.56
Positive
45.55
Neutral
29.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KWR, the sentiment is Negative. The current price of 165.91 is above the 20-day moving average (MA) of 158.06, above the 50-day MA of 162.19, and above the 200-day MA of 148.89, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 29.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KWR.
Quaker Chemical Risk Analysis
Quaker Chemical disclosed 33 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $79.70B | 37.91 | 21.41% | 1.03% | 7.11% | -0.48% | |
69 Neutral | $12.44B | 17.97 | 21.13% | 2.24% | 5.96% | 0.68% | |
62 Neutral | $1.38B | -506.67 | -0.22% | 2.60% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.70B | 27.88 | 7.12% | 1.30% | 7.79% | ― | |
60 Neutral | $8.88B | 49.58 | 6.57% | 0.88% | 26.61% | -25.95% | |
56 Neutral | $3.24B | 62.09 | 2.77% | 2.36% | -1.39% | ― |
* Basic Materials Sector Average
KWR
Quaker Chemical
156.95
29.27
22.93%
ASH
Ashland
70.78
23.75
50.49%
ECL
Ecolab
284.30
17.00
6.36%
RPM
RPM International
97.57
-11.79
-10.78%
SCL
Stepan Company
60.80
14.72
31.95%
ESI
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36.45
11.60
46.67%
Quaker Chemical Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Quaker Houghton Completes Leverage-Neutral Term Loan Refinancing
Positive
Oct 1, 2026
On October 1, 2026, Quaker Houghton completed a leverage-neutral refinancing, closing a new seven-year, U.S. dollar-denominated Term Loan B facility totaling $550 million to amend its existing credit agreement. The proceeds were used to fully repa...
Executive/Board Changes
Quaker Houghton Announces Executive Leadership Transition and Severance
Neutral
Sep 8, 2026
Quaker Houghton said that, effective September 30, 2026, Jeewat Bijlani will step down from his role as Executive Vice President, Global Specialty and Chief Growth Officer. The company noted that Bijlani’s departure is not due to any disagre...
Executive/Board Changes
Quaker Chemical CFO Expands Role Amid Leadership Transition
Neutral
Jul 7, 2026
On June 30, 2026, Quaker Houghton announced that Vice President, Corporate Controller and Principal Accounting Officer Steven Dassing resigned, effective July 22, 2026, to pursue another career opportunity, with the company emphasizing that his de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.