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Quaker Chemical (KWR)
:KWR
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Quaker Chemical
(NYSE:KWR)
Select Model
Select Model
Rating:64Neutral
Price Target:
$140.00
▲(5.11% Upside)
Quaker Chemical's overall stock score reflects a mix of strengths and challenges. The company's stable financial position and strategic initiatives are positive, but profitability issues and valuation concerns weigh on the score. Technical indicators suggest cautious optimism, while the earnings call provides a hopeful outlook despite market uncertainties.
Positive Factors
Organic Volume Growth
The organic volume growth, especially in Asia/Pacific, indicates strong demand and effective market penetration, supporting long-term revenue expansion.
Strategic Acquisitions
Strategic acquisitions enhance product offerings and market reach, positioning the company for sustained growth and competitive advantage.
Cash Flow Strength
Robust cash flow generation ensures financial stability and flexibility, enabling investment in growth initiatives and shareholder returns.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder reinvestment in business growth and affect long-term financial health.
EMEA Segment Challenges
Challenges in the EMEA segment may continue to impact earnings and require strategic adjustments to mitigate risks.
Tariff and Cost Pressures
Tariff and cost pressures can erode margins and affect competitiveness, necessitating cost management and pricing strategies.
Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.27B
Dividend Yield1.56%
Average Volume (3M)97.34K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-3.09%
EPS Growth-106.46%
CountryUS
Employees4,400
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.08
Shares Outstanding17,394,619
10 Day Avg. Volume90,378
30 Day Avg. Volume97,340
Financial Highlights & Ratios
PEG Ratio4.64
Price to Book (P/B)1.85
Price to Sales (P/S)1.36
P/FCF Ratio11.60
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$154.33Price Target Upside15.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Quaker Chemical Business Overview & Revenue Model
Company DescriptionQuaker Chemical Corporation (KWR) is a global provider of specialty lubricants and coatings, primarily serving the metalworking, automotive, aerospace, and industrial markets. Founded in 1918, the company focuses on delivering high-performance products and innovative solutions that enhance the efficiency and sustainability of manufacturing processes. Quaker Chemical's core offerings include metalworking fluids, rust preventives, and hydraulic fluids, along with a range of applications that support manufacturing operations across various sectors.
How the Company Makes MoneyQuaker 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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted positive developments in volume growth, EBITDA improvement, and strategic acquisitions. However, these were tempered by challenges in EMEA, cost pressures from tariffs, and a decline in the Americas segment. While the company is making strides in growth and cost management, ongoing market uncertainties pose risks.Q2-2025 Updates
Positive Updates
Organic Volume Growth
Quaker Houghton achieved 2% year-over-year organic volume growth, with a notable 8% increase in Asia/Pacific.
Adjusted EBITDA Increase
The company reported $75.5 million of adjusted EBITDA in the second quarter, an increase of approximately $6 million sequentially, with adjusted EBITDA margins of 15.6%.
Share Repurchase and Dividend Increase
Quaker Houghton repurchased $33 million of shares and the Board approved a 5% increase to the cash dividend, marking the 16th consecutive annual increase.
Acquisitions and Integration
The company completed acquisitions of Dipsol and Natech, which are performing in line with expectations, contributing to sales and providing additional market opportunities.
Negative Updates
EMEA Segment Challenges
Persistent market volatility and geopolitical events led to a non-cash goodwill impairment charge in the EMEA segment, impacting overall earnings.
Tariff and Cost Pressures
Uncertainty created by tariffs is impacting demand, product, and geographic mix, along with higher raw material and manufacturing costs.
Americas Segment Decline
Net sales in the Americas declined 1% year-over-year, with a 2% volume decline despite a modest contraction in end markets.
Company Guidance
During the second quarter of 2025, Quaker Houghton demonstrated notable financial performance with a 4% year-over-year increase in sales, driven by a 2% rise in organic sales volume. The company's Asia/Pacific segment led with an 8% increase in organic sales volume, while acquisitions, such as Dipsol, contributed an additional 6% to sales. Despite macroeconomic challenges, Quaker Houghton maintained gross margins at 36%, albeit slightly down from the previous year, influenced by product and geographic mix and higher raw material costs. The company achieved $75.5 million in adjusted EBITDA, reflecting a margin of 15.6%, and generated $42 million in operating cash flow. Quaker Houghton executed a $33 million share repurchase as part of its capital allocation strategy. Looking ahead, the company expects end-market softness to persist but remains confident in achieving its long-term growth targets of 2% to 4% annually through continued business development and strategic cost actions aimed at yielding $20 million in additional savings by the end of 2026.Quaker Chemical Financial Statement Overview
Summary
Quaker Chemical faces challenges with negative net income and declining revenue growth. However, stable balance sheet metrics and strong operational cash flow provide a buffer against earnings volatility.Income Statement
The income statement reveals challenges in profitability with a TTM net profit margin of -0.39%, down from a positive 6.34% in the previous year. The gross profit margin is relatively stable at 36.11% for TTM. The revenue growth has declined by 6.18% from 2023 to 2024, indicating a need for revenue generation strategies.65
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.72 for TTM, a slight increase from the previous year, indicating a manageable but rising leverage. ROE has turned negative at -0.53% for TTM, reflecting recent profitability challenges. The equity ratio remains stable at 47.12%, demonstrating solid equity support.70
Positive
Cash Flow
Cash flow analysis indicates strong operational efficiency with an operating cash flow to net income ratio of -23.8 for TTM. Free cash flow remains positive, though it declined from 2023 to TTM, suggesting a need to manage capital expenditures.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.84B | 1.95B | 1.94B | 1.76B | 1.42B |
| Gross Profit | 661.73M | 686.03M | 705.64M | 612.65M | 594.64M | 513.44M |
| EBITDA | 140.75M | 194.71M | 290.11M | 239.42M | 253.22M | 138.74M |
| Net Income | -7.13M | 116.64M | 112.75M | -17.81M | 121.37M | 39.66M |
Balance Sheet | ||||||
| Total Assets | 2.85B | 2.61B | 2.71B | 2.82B | 2.96B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 201.92M | 188.88M | 194.53M | 180.96M | 165.18M | 181.83M |
| Total Debt | 960.13M | 737.82M | 788.97M | 979.77M | 919.68M | 915.11M |
| Total Liabilities | 1.50B | 1.26B | 1.33B | 1.54B | 1.57B | 1.57B |
| Stockholders Equity | 1.34B | 1.35B | 1.38B | 1.28B | 1.39B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 152.84M | 215.86M | 240.22M | 13.26M | 27.48M | 160.49M |
| Operating Cash Flow | 169.57M | 204.58M | 279.02M | 41.79M | 48.93M | 178.39M |
| Investing Cash Flow | -223.91M | -76.42M | -27.62M | -40.19M | -49.13M | -71.39M |
| Financing Cash Flow | 64.19M | -122.66M | -238.61M | 24.67M | -13.46M | -75.25M |
Quaker Chemical Technical Analysis
Negative
133.19
Price Trends
135.55
Negative
128.69
Negative
124.63
Positive
Market Momentum
-0.82
Positive
36.82
Neutral
24.95
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 133.19 is above the 20-day moving average (MA) of 130.98, below the 50-day MA of 135.55, and above the 200-day MA of 124.63, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 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 30 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 |
|---|---|---|---|---|---|---|---|
| ― | $2.62B | 28.62 | 36.39% | 1.94% | 4.98% | 30.84% | |
| ― | $2.27B | ― | -0.52% | 1.56% | -3.09% | -106.46% | |
| ― | $1.72B | -2,066.54 | -0.09% | 0.81% | -2.53% | -100.23% | |
| ― | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
| ― | $1.82B | 97.45 | 1.55% | 2.22% | -5.45% | -87.13% | |
| ― | $1.95B | ― | -106.83% | ― | -14.45% | 49.92% | |
| ― | $2.22B | -2.61 | -34.43% | 3.30% | -11.38% | -690.99% |
* Basic Materials Sector Average
KWR
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Quaker Chemical Corporate Events
Quaker Houghton Reports Q2 2025 Financial Results
Aug 2, 2025
Quaker Houghton is a global leader in industrial process fluids, serving a diverse range of industries including steel, automotive, and aerospace. The company is known for its innovative and sustainable solutions, supported by a strong presence in over 25 countries.
Quaker Chemical’s Earnings Call: Growth Amid Challenges
Aug 2, 2025
Quaker Chemical’s Recent Earnings Call: A Balanced Performance Amid Challenges
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.