Quaker Chemical (KWR) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: 1.8%
• Average Volume (3M): 185.83K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.27
• Revenue Growth: -5.82%
• EPS Growth: 3.75%
• Country: US
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Chemicals - Specialty
• EPS (TTM): 6.50
• Shares Outstanding: 17,670,916
• 10 Day Avg. Volume: 149,194
• 30 Day Avg. Volume: 185,833
• PEG Ratio: 4.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $136.33
• Price Target Upside: 31.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Quaker Chemical's overall score reflects its solid financial management and strategic resilience in challenging markets. While the technical indicators point to a bearish trend, the company's stable profitability, effective cost management, and strategic market expansions offer a balanced growth outlook. The valuation metrics support a fair market price, and the guidance from the latest earnings call is optimistic, despite current market headwinds.

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 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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.84B	1.95B	1.94B	1.76B	1.42B
	Gross Profit
686.03M	705.64M	612.65M	594.64M	513.44M
	EBIT
194.71M	214.50M	144.64M	150.47M	127.07M
	EBITDA
194.71M	290.11M	239.42M	253.22M	138.74M
	Net Income Common Stockholders
116.64M	112.75M	-17.81M	121.37M	39.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
188.88M	194.53M	180.96M	165.18M	181.83M
	Total Assets
2.61B	2.71B	2.82B	2.96B	2.89B
	Total Debt
737.82M	788.97M	979.77M	919.68M	915.11M
	Net Debt
548.93M	594.44M	798.81M	754.51M	733.27M
	Total Liabilities
1.26B	1.33B	1.54B	1.57B	1.57B
	Stockholders Equity
1.35B	1.38B	1.28B	1.39B	1.32B
Cash Flow		Free Cash Flow
215.86M	240.22M	13.26M	27.48M	160.49M
	Operating Cash Flow
204.58M	279.02M	41.79M	48.93M	178.39M
	Investing Cash Flow
-76.42M	-27.62M	-40.19M	-49.13M	-71.39M
	Financing Cash Flow
-122.66M	-238.61M	24.67M	-13.46M	-75.25M

Quaker Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 103.46 is below the 20-day moving average (MA) of 103.82, below the 50-day MA of 120.42, and below the 200-day MA of 146.84, indicating a bearish trend. The MACD of -4.25 indicates Negative momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KWR.

Quaker Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KWR	68 Neutral	$1.87B	16.29	8.49%	1.80%	-5.82%	3.75%
IOSP	67 Neutral	$2.32B	65.09	3.02%	1.72%	-5.31%	-74.42%
MTX	64 Neutral	$1.67B	11.37	-1.45%	0.80%	-3.82%	-126.04%
CC	56 Neutral	$1.82B	21.30	12.98%	8.20%	-4.05%	―
PRM	55 Neutral	$1.52B	―	-0.51%	―	74.16%	-112.26%
Sector *	49 Neutral	$1.95B	-1.37	-21.43%	3.74%	0.84%	-29.84%
SSL	47 Neutral	$2.21B	―	-28.05%	2.00%	-4.31%	-1421.83%

Quaker Chemical Corporate Events

Quaker Chemical Grants Long-Term Incentive Awards

Quaker Chemical Corporation’s Compensation and Human Resources Committee has granted long-term incentive equity compensation awards to its executives, Tom Coler and Jeewat Bijlani, in the form of restricted stock units (RSUs) under its Long-Term Performance Incentive Plan. These RSUs are subject to a performance modifier based on the company’s total shareholder return relative to the S&P 1500 Chemicals Index, with vesting adjustments ranging from 75% to 125% of the target number, depending on performance over a three-year period.