Quaker Chemical (KWR) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: 1.62%
• Average Volume (3M): 198.62K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.24
• Revenue Growth: -5.72%
• EPS Growth: -19.82%
• Country: US
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 1.58
• Shares Outstanding: 17,680,655
• 10 Day Avg. Volume: 219,802
• 30 Day Avg. Volume: 198,616
• PEG Ratio: -1.21
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.36
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 2.33
• 1Y Price Target: $152.00
• Price Target Upside: 24.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $136.00 ▲(11.72%Upside)

Quaker Chemical's overall stock score of 73.2 reflects a stable financial position with strong cash flow management and moderate profitability, despite recent declines in revenue and profit margins. Technical analysis shows positive short-term momentum, although longer-term indicators suggest caution. Valuation metrics indicate the stock may be overvalued, while the earnings call highlights effective cost management and strategic initiatives that could drive future growth.

Positive Factors

Market Position

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 Conditions

Solid margins and ROCE above 2019 levels despite soft end-markets mark KWR as a good quality-at-a-reasonable-price candidate.

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 Houghton generates revenue primarily through the sale of its specialized chemical products and technical services to industrial clients. The company’s revenue streams are mainly derived from the production and distribution of metalworking fluids, industrial lubricants, cleaners, and specialty coatings. Quaker Houghton collaborates closely with its customers to tailor its products to specific industrial processes, thereby enhancing efficiency and performance. Additionally, the company engages in research and development to continuously innovate and expand its product offerings. Strategic partnerships and long-term contracts with key clients in various sectors, along with a strong global distribution network, significantly contribute to its earnings.

Quaker Chemical Financial Statement Overview

Summary

Quaker Chemical exhibits a stable financial position with strong cash flow management and moderate profitability. However, there is concern due to recent declines in revenue and profit margins, 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
EBITDA	194.71M	290.11M	239.42M	253.22M	138.74M
Net Income	116.64M	112.75M	-17.81M	121.37M	39.66M
Balance Sheet
Total Assets	2.61B	2.71B	2.82B	2.96B	2.89B
Cash, Cash Equivalents and Short-Term Investments	188.88M	194.53M	180.96M	165.18M	181.83M
Total Debt	737.82M	788.97M	979.77M	919.68M	915.11M
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: Positive
• Last Price: 121.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 121.73 is above the 20-day moving average (MA) of 119.72, above the 50-day MA of 113.18, and below the 200-day MA of 132.75, indicating a neutral trend. The MACD of 2.75 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 is Positive, 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	73 Outperform	$2.11B	22.65	6.78%	1.62%	-5.72%	-19.82%
Sector *	70 Outperform	¥175.49B	11.17	6.29%	3.42%	3.91%	3.49%
IOSP	70 Neutral	$2.12B	80.36	2.21%	1.99%	-7.91%	-81.73%
PRM	69 Neutral	$2.41B	21.29	11.76%	―	70.16%	―
MTX	61 Neutral	$1.81B	11.37	-1.45%	0.77%	-3.82%	-126.04%
SSL	57 Neutral	$3.23B	―	-28.05%	2.00%	-4.31%	-1421.83%
CC	57 Neutral	$1.98B	66.42	4.66%	2.64%	-0.68%	―

Quaker Chemical Corporate Events

Quaker Chemical Announces Board Member Retirement

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.

Quaker Chemical Holds Annual Shareholder Meeting

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.