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Quaker Chemical
(NYSE:KWR)
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Rating:66Neutral
Price Target:
$181.00
▲(19.53% Upside)
Action:Reiterated
Date:08/04/26
KWR scores moderately positive, led by strong technical momentum (price above key moving averages with a positive MACD) and a supportive earnings-call outlook (record adjusted EBITDA, reaffirmed growth and margin recovery targets). The score is tempered by only mid-tier financial statement quality driven by uneven earnings and variable cash generation, plus a relatively expensive valuation (28.5x P/E) with a modest dividend yield.
Positive Factors
Record adjusted EBITDA and margin recovery
Achieving a record quarterly adjusted EBITDA demonstrates durable operational improvements and better cost control. Coupled with management targets to lift EBITDA margins above 18% and stated transformation savings, this underpins sustainable cash flow generation and capacity to reinvest or return capital over the medium term.
Negative Factors
Raw-material cost exposure pressuring margins
Large exposure to base oils and container costs creates structural margin cyclicality: sustained input-price spikes or index timing lags can compress product margins despite pricing actions. This weakens predictability of operating leverage and delays recovery to targeted gross-margin bands.
Read all positive and negative factors
Positive Factors
Negative Factors
Record adjusted EBITDA and margin recovery
Achieving a record quarterly adjusted EBITDA demonstrates durable operational improvements and better cost control. Coupled with management targets to lift EBITDA margins above 18% and stated transformation savings, this underpins sustainable cash flow generation and capacity to reinvest or return capital over the medium term.
Read all positive factors
Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend Yield1.27%
Average Volume (3M)132.77K
Price to Earnings (P/E)28.5
Beta (1Y)1.11
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. Volume151,729
30 Day Avg. Volume132,768
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$189.33Price Target Upside25.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)7.01
Revenue Forecast (FY)$1.99B
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 Houghton makes money primarily by selling specialty industrial process fluids and chemical formulations to industrial customers, typically in recurring-use applications where products are consumed during manufacturing (e.g., lubricants and ...
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 | 260.06M | 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 | 100.07M | 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
Positive
151.43
Price Trends
151.07
Positive
141.55
Positive
142.59
Positive
Market Momentum
4.80
Negative
62.60
Neutral
84.15
Negative
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 151.43 is below the 20-day moving average (MA) of 155.08, above the 50-day MA of 151.07, and above the 200-day MA of 142.59, indicating a bullish trend. The MACD of 4.80 indicates Negative momentum. The RSI at 62.60 is Neutral, neither overbought nor oversold. The STOCH value of 84.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.05B | 34.42 | 33.05% | 1.73% | 10.15% | 3.57% | |
77 Outperform | $2.12B | 18.69 | 9.01% | 2.11% | 0.25% | 325.27% | |
66 Neutral | $2.76B | 28.51 | 7.12% | 1.34% | 7.79% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $3.33B | 63.69 | 2.77% | 2.51% | -1.39% | ― | |
59 Neutral | $2.51B | 47.47 | 85.17% | ― | -12.42% | ― | |
56 Neutral | $2.36B | -34.97 | -4.04% | 0.62% | 4.06% | -3189.89% |
* Basic Materials Sector Average
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Quaker Chemical Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Quaker Houghton Announces Leadership Transition and Board Changes
Positive
May 15, 2026
On May 13, 2026, Quaker Houghton’s board accepted the voluntary retirement of long-serving chairman and director Michael F. Barry, who had joined the board in 2008 and led it since 2009, and reduced its size from eleven to ten members. Indep...
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.