Quaker Chemical (KWR) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: 1.33%
• Average Volume (3M): 158.92K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.25
• Revenue Growth: -3.09%
• EPS Growth: -106.46%
• Country: US
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.71
• Shares Outstanding: 17,394,619
• 10 Day Avg. Volume: 116,969
• 30 Day Avg. Volume: 158,924
• PEG Ratio: 4.64
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 11.60
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 19.48
• 1Y Price Target: $150.00
• Price Target Upside: 3.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: $159.00 ▲(9.38% Upside)

Quaker Chemical's stock score is driven by a stable financial position and strong technical momentum, despite profitability challenges and valuation concerns. The earnings call provided a balanced view with positive growth initiatives offset by regional and cost pressures.

Positive Factors

Market Trends

The company's technical sales process has doubled share gains in recent years due to scale advantages and leverage to secular trends like digitalization and automation.

Sales Growth

KWR's leverage to a cyclical recovery could significantly boost EPS, with each 1% of 'surprise' sales growth potentially adding 3.5%-4.2% to EPS.

Valuation

KWR trades at a discount to its quality compounder peers, indicating potential for valuation multiples to improve.

Negative Factors

Market Valuation

Quaker currently trades at ~8.6x NTM EBITDA, 51% below its 5-year and 10-year averages, suggesting potential for valuation improvement.

Quaker Chemical Business Overview & Revenue Model

Company Description

Quaker 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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 145.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 145.36 is above the 20-day moving average (MA) of 134.26, above the 50-day MA of 125.48, and above the 200-day MA of 128.29, indicating a bullish trend. The MACD of 6.13 indicates Negative momentum. The RSI at 72.81 is Negative, neither overbought nor oversold. The STOCH value of 70.79 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
KWR	70 Neutral	$2.50B	21.71	-0.52%	1.33%	-3.09%	-106.46%
MTX	68 Neutral	$2.00B	1,403.96	0.13%	0.68%	-3.93%	-97.39%
PRM	63 Neutral	$3.15B	50.68	7.06%	―	56.87%	―
IOSP	63 Neutral	$2.13B	113.97	1.55%	1.86%	-5.45%	-87.13%
Sector *	61 Neutral	$10.31B	6.29	0.74%	2.95%	3.36%	-36.41%
SSL	57 Neutral	$4.25B	11.39	4.56%	2.00%	-6.73%	―
CC	51 Neutral	$2.27B	59.33	-87.50%	4.48%	2.48%	-459.90%

Quaker Chemical Corporate Events

Quaker Chemical Appoints New Principal Accounting Officer

On July 18, 2025, Jeffrey Kutz resigned as Vice President, Chief Accounting Officer of Quaker Chemical Corporation, with his departure being voluntary and unrelated to any disagreement with the company. Following his resignation, Steve Dassing, who has been with the company since 2022, will assume the role of Principal Accounting Officer while maintaining his position as Vice President, Corporate Controller. The company has updated Mr. Dassing’s salary to $300,000 per annum, and he will continue to participate in the company’s incentive plans. This transition is expected to maintain stability in the company’s financial operations.