Quaker Chemical (KWR) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 1.41%
• Average Volume (3M): 103.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 0.08%
• EPS Growth: -107.33%
• Country: US
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.08
• Shares Outstanding: 17,340,034
• 10 Day Avg. Volume: 121,940
• 30 Day Avg. Volume: 103,091
• PEG Ratio: 5.61
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 11.60
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 23.44
• 1Y Price Target: $161.67
• Price Target Upside: 21.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $144.00 ▲(8.12% Upside)

Quaker Chemical's overall stock score reflects a challenging financial performance with declining profitability and cash flow issues. However, positive earnings call highlights, including strong EBITDA growth and effective cost management, provide some optimism. The technical analysis suggests a stable trend, but valuation concerns persist due to a negative P/E ratio.

Positive Factors

Organic Volume Growth

Strong organic volume growth, especially in Asia Pacific, indicates robust demand and effective market penetration, supporting long-term revenue expansion.

Cost Management

Effective cost management improves profitability and operational efficiency, enhancing the company's ability to navigate economic challenges and invest in growth.

Debt Reduction

Reducing debt strengthens the balance sheet, lowers interest expenses, and increases financial flexibility, supporting long-term strategic initiatives.

Negative Factors

Declining Profitability

Negative profitability suggests challenges in cost control and pricing power, potentially hindering reinvestment and shareholder returns if not addressed.

Cash Flow Challenges

Weak cash flow performance limits the company's ability to fund operations and growth initiatives, potentially impacting long-term sustainability.

Macroeconomic Challenges

Persistent macroeconomic challenges and tariff uncertainties can disrupt supply chains and demand, affecting the company's strategic planning and market stability.

Quaker Chemical Business Overview & Revenue Model

Company Description

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications. The company operates through four segments: Americas; Europe, Middle East, and Africa; Asia/Pacific; and Global Specialty Businesses. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies. The company was formerly known as Quaker Chemical Products Corporation and changed its name to Quaker Chemical Corporation in August 1962. Quaker Chemical Corporation was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

How the Company Makes Money

Quaker Chemical primarily generates revenue through the sale of its specialty lubricants and fluids, which are integral to manufacturing processes in various industries. The company has a diverse revenue model that includes direct sales to customers, as well as distribution through third-party partners. Key revenue streams stem from long-term contracts with major manufacturing firms, which provide a stable income base. Additionally, Quaker Chemical benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The company also invests in research and development to innovate new products and improve existing ones, which helps maintain a competitive edge and drive sales growth.

Quaker Chemical Financial Statement Overview

Summary

Quaker Chemical is facing financial headwinds, with declining profitability and cash flow challenges. While the company maintains a stable capital structure, operational inefficiencies and cash flow issues need to be addressed to improve financial health.

Income Statement

Quaker Chemical's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 1.72%, but the company is currently experiencing a negative net profit margin of -0.48%, indicating a loss. Gross profit margin remains healthy at 35.94%, but the EBIT and EBITDA margins have significantly declined compared to previous years, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.66, which is manageable but has increased over the years. The return on equity is negative in the TTM period, signaling inefficiencies in generating returns for shareholders. However, the equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by -16.56% in the TTM period, indicating potential cash management issues. The operating cash flow to net income ratio is below 1, suggesting that cash generation is not keeping pace with earnings. The free cash flow to net income ratio is relatively strong at 0.83, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.84B	1.95B	1.94B	1.76B	1.42B
Gross Profit	670.05M	686.03M	705.64M	612.65M	594.64M	513.44M
EBITDA	129.49M	284.95M	290.11M	239.42M	253.22M	138.74M
Net Income	-9.00M	116.64M	112.75M	-17.81M	121.37M	39.66M
Balance Sheet
Total Assets	2.82B	2.61B	2.71B	2.82B	2.96B	2.89B
Cash, Cash Equivalents and Short-Term Investments	172.04M	188.88M	194.53M	180.96M	165.18M	181.83M
Total Debt	897.11M	737.82M	788.97M	979.77M	919.68M	915.11M
Total Liabilities	1.45B	1.26B	1.33B	1.54B	1.57B	1.57B
Stockholders Equity	1.36B	1.35B	1.38B	1.28B	1.39B	1.32B
Cash Flow
Free Cash Flow	127.53M	215.86M	240.22M	13.26M	27.48M	160.49M
Operating Cash Flow	152.97M	204.58M	279.02M	41.79M	48.93M	178.39M
Investing Cash Flow	-213.60M	-76.42M	-27.62M	-40.19M	-49.13M	-71.39M
Financing Cash Flow	23.61M	-122.66M	-238.61M	24.67M	-13.46M	-75.25M

Quaker Chemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KWR, the sentiment is Positive. The current price of 133.19 is above the 20-day moving average (MA) of 131.32, below the 50-day MA of 135.38, and above the 200-day MA of 124.68, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 41.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KWR.

Quaker Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDFC	―	$2.63B	29.05	36.39%	1.93%	4.98%	30.84%
MTX	―	$1.75B	-2,107.52	-0.09%	0.79%	-2.53%	-100.23%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	―	$2.31B	―	-0.64%	1.41%	0.08%	-107.33%
IOSP	―	$1.83B	97.68	1.55%	2.22%	-5.45%	-87.13%
NGVT	―	$1.96B	―	-106.83%	―	-14.45%	49.92%
ASH	―	$2.20B	-2.59	-34.43%	3.40%	-11.38%	-690.99%

Quaker Chemical Corporate Events

Quaker Chemical’s Insider Trading Policies Under Scrutiny: Investor Confidence at Risk

Quaker Chemical faces a potential business risk related to insider trading arrangements and policies. As of the quarter ending September 30, 2025, no directors or officers of the company have adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements. This lack of activity could raise concerns about the company’s internal controls and governance practices, potentially affecting investor confidence. Stakeholders may scrutinize the company’s adherence to regulatory compliance and its ability to manage insider trading risks effectively.