Quaker Chemical (KWR) AI Stock Analysis

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Quaker Chemical

(NYSE:KWR)

Rating:68Neutral

Price Target:―

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.

Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.88B

Dividend Yield1.79%

Average Volume (3M)154.18K

Price to Earnings (P/E)20.2

Beta (1Y)1.22

Revenue Growth-5.72%

EPS Growth-19.82%

CountryUS

Employees4,400

SectorBasic Materials

Sector Strength64

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.58

Shares Outstanding17,680,655

10 Day Avg. Volume154,857

30 Day Avg. Volume154,184

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

$124.67

Price Target Upside17.08% 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 Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 0.44%|

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 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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Neutral

Last Price106.48

Price Trends

50DMA

110.72

Positive

100DMA

123.61

Negative

200DMA

141.25

Negative

Market Momentum

MACD

-0.38

Negative

RSI

57.98

Neutral

STOCH

59.15

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 106.48 is above the 20-day moving average (MA) of 105.53, below the 50-day MA of 110.72, and below the 200-day MA of 141.25, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 59.15 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 1 New Risks

The timing and amount of the Company's share repurchases are subject to a number of uncertainties, and there can be no assurance that we will continue to repurchase shares of our common stock. Q4, 2024

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
PRM	72 Outperform	$1.73B	14.97	11.76%	―	70.16%	―
KWR	68 Neutral	$1.88B	20.20	6.78%	1.79%	-5.72%	-19.82%
IOSP	66 Neutral	$2.14B	80.83	2.21%	1.81%	-7.91%	-81.73%
MTX	65 Neutral	$1.84B	11.37	-1.45%	0.72%	-3.82%	-126.04%
SSL	53 Neutral	$2.85B	―	-28.05%	2.00%	-4.31%	-1421.83%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
CC	49 Neutral	$1.54B	50.05	4.66%	9.71%	-0.68%	―

* Basic Materials Sector Average

Performance Comparison

KWR

Quaker Chemical

111.78

-67.29

-37.58%

IOSP

Innospec

87.85

-38.55

-30.50%

MTX

Minerals Technologies

59.95

-23.96

-28.55%

SSL

Sasol

4.56

-2.43

-34.76%

Chemours Company

10.62

-14.70

-58.06%

PRM

Perimeter Solutions

11.95

4.44

59.12%

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.

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.

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.