Quaker Chemical (KWR)
NYSE:KWR
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Quaker Chemical
(NYSE:KWR)
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Rating:66Neutral
Price Target:
$154.00
▲(10.15% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by improving cash generation and manageable leverage, but it is held back by the sharp deterioration in profitability and returns. Technicals are supportive (positive momentum and price above key moving averages), and the latest earnings call added optimism via expected growth, near-term margin recovery, and a concrete cost-savings roadmap, while valuation remains somewhat demanding given recent earnings pressure.
Positive Factors
Strong free cash flow
Trailing‑12‑month free cash flow recovered materially and is close to reported net income, showing cash conversion from operations. Durable FCF supports reinvestment in facilities, debt reduction, and shareholder actions while cushioning margin volatility tied to input costs.
Negative Factors
Profitability deterioration
Margin collapse and near‑zero returns signal weakened operating profitability despite revenue growth. Sustained pressure on net margins reduces retained earnings, limits reinvestment capacity, and raises the bar for management to deliver structural margin recovery to meet long‑term targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Trailing‑12‑month free cash flow recovered materially and is close to reported net income, showing cash conversion from operations. Durable FCF supports reinvestment in facilities, debt reduction, and shareholder actions while cushioning margin volatility tied to input costs.
Read all positive factors
Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.49B
Dividend Yield1.37%
Average Volume (3M)132.77K
Price to Earnings (P/E)583.7
Beta (1Y)1.13
Revenue Growth6.25%
EPS Growth-94.37%
CountryUS
Employees4,400
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.29
Shares Outstanding17,366,444
10 Day Avg. Volume151,729
30 Day Avg. Volume132,768
Financial Highlights & Ratios
PEG Ratio9.44
Price to Book (P/B)1.75
Price to Sales (P/S)1.27
P/FCF Ratio29.77
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda18.40
Forecast
1Y Price Target
$169.00Price Target Upside20.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)7.17
Revenue Forecast (FY)$2.00B
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, a...
How the Company Makes Money
Quaker Houghton makes money primarily by selling formulated process fluids and specialty chemical products to industrial customers on a recurring, consumable basis. Revenue is generated from (1) product sales of industrial fluids used in customers...
Quaker Chemical Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call contained multiple positive operational and financial developments: revenue up 8%, organic volumes up 3%, adjusted EBITDA growth, strong Asia Pacific outperformance (+25% sales, +32% earnings), sustained market share gains and improved liquidity via an enhanced credit facility. Management acknowledges near-term margin pressure driven by elevated raw material and shipping costs tied to the Middle East conflict, and higher SG&A that reduced adjusted EBITDA margin to 15.1%. They outlined a targeted transformation program with identifiable cost savings ($10M in 2026 exit run-rate; $20-$30M over 3 years) and expect margins to recover within 1–2 quarters. Overall, positives (growth, market share, balance sheet and clear cost-reduction roadmap) materially outweigh the temporary challenges (Q2 margin headwinds, SG&A impact and regional disruptions).Positive Updates
Revenue and Volume Growth
Net sales of $480 million, up 8% year-over-year; organic volumes up 3% YoY. Adjusted EBITDA of $73 million, a 5% increase YoY. Non-GAAP diluted EPS $1.63, up 3% YoY.
Negative Updates
Near-Term Gross Margin Headwinds
Company expects Q2 gross margins to be ~200-300 basis points below Q1 sequentially due to raw material and shipping cost inflation related to the Middle East conflict; management expects recovery within 1-2 quarters assuming no further deterioration.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Volume Growth
Net sales of $480 million, up 8% year-over-year; organic volumes up 3% YoY. Adjusted EBITDA of $73 million, a 5% increase YoY. Non-GAAP diluted EPS $1.63, up 3% YoY.
Read all positive updates
Company Guidance
Guidance summary: Management expects sequential Q2 volume and revenue growth but temporary gross‑margin pressure of roughly 200–300 basis points sequentially (Q1 gross margin was 36.8%), with margins recovering into the 36%–37% target range within 1–2 quarters as pricing actions take hold; they still expect revenue and adjusted EBITDA growth for 2026 assuming no significant market deterioration and are targeting adjusted EBITDA margins at or above 18% longer term (Q1 adjusted EBITDA was $73M, a 15.1% margin, on $480M net sales, +8% YoY). Key Q1 and bridge metrics cited: organic volumes +3% YoY, net share gains +4% (10th consecutive quarter), acquisitions +4% sales contribution, favorable FX +4%, price & mix -3%; Asia Pacific organic volumes +10% and AP sales +25% YoY; Q1 non‑GAAP EPS $1.63 (GAAP $1.13), cash from operations $4M, Q1 capex ~$11M with full‑year capex guidance 2.5%–3.5% of sales, interest expense $10M (cost of debt ~5%), and an effective tax rate ~28%–29%. Cost actions: expect about $10M of new run‑rate savings by year‑end and a clear path to $20M–$30M of sustainable structural savings over three years (plus ~$2M 2026 and ~$5M annual savings from the Dortmund closure).Quaker Chemical Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.89B | 1.84B | 1.95B | 1.94B | 1.76B |
| Gross Profit | 662.17M | 679.37M | 686.03M | 705.64M | 612.65M | 594.64M |
| EBITDA | 175.68M | 144.53M | 280.18M | 285.81M | 120.16M | 255.87M |
| Net Income | 4.26M | -2.49M | 116.64M | 112.75M | -15.93M | 121.37M |
Balance Sheet | ||||||
| Total Assets | 2.80B | 2.80B | 2.61B | 2.71B | 2.82B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 169.73M | 179.83M | 188.88M | 194.53M | 180.96M | 165.18M |
| Total Debt | 909.42M | 928.61M | 737.82M | 788.97M | 991.80M | 929.66M |
| Total Liabilities | 1.42B | 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 | 142.71M | 80.60M | 215.86M | 240.22M | 13.26M | 27.48M |
| Operating Cash Flow | 143.29M | 136.45M | 204.58M | 279.02M | 41.79M | 48.93M |
| Investing Cash Flow | -210.24M | -214.12M | -76.42M | -27.62M | -40.19M | -49.13M |
| Financing Cash Flow | 47.26M | 61.83M | -122.66M | -238.61M | 24.67M | -13.46M |
Quaker Chemical Technical Analysis
Positive
139.81
Price Trends
134.09
Positive
143.01
Positive
139.16
Positive
Market Momentum
2.26
Negative
54.64
Neutral
81.21
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 139.81 is below the 20-day moving average (MA) of 141.68, above the 50-day MA of 134.09, and above the 200-day MA of 139.16, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 81.21 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.04B | 17.99 | 8.54% | 2.19% | 0.25% | 325.27% | |
73 Outperform | $2.69B | 33.76 | 30.23% | 1.87% | 4.23% | -6.09% | |
70 Outperform | $2.39B | 14.77 | 9.55% | 0.74% | 2.50% | ― | |
66 Neutral | $2.49B | 583.70 | 0.31% | 1.37% | 6.25% | -94.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.36B | -18.73 | -156.14% | ― | -10.27% | 63.55% | |
55 Neutral | $2.65B | -3.76 | -37.54% | 2.79% | -7.23% | -594.66% |
* Basic Materials Sector Average
KWR
Quaker Chemical
143.53
40.99
39.98%
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WDFC
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Quaker Chemical Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Quaker Chemical Refinances Credit Facilities to Boost Liquidity
Positive
Apr 14, 2026
On April 10, 2026, Quaker Chemical Corporation and its subsidiary Quaker Houghton B.V. entered into an amended senior secured credit agreement that replaces their 2019 facility with a new $550 million U.S. dollar term loan, an approximately $250 m...
Executive/Board Changes
Quaker Chemical Announces Involuntary Departure of Senior Executive
Negative
Mar 12, 2026
Effective March 9, 2026, Quaker Chemical Corporation announced that Jeffrey Fleck ceased serving as Senior Vice President and Chief Global Operations Officer, with the company stating his departure was not due to any disagreement. The company clas...
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.