NYSE:KWR

Stock Analysis Report

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Executive Summary

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has Quaker Chemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KWR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

KWR

-4.6%

US Chemicals

-4.1%

US Market


1 Year Return

21.8%

KWR

2.7%

US Chemicals

12.0%

US Market

Return vs Industry: KWR exceeded the US Chemicals industry which returned 2.7% over the past year.

Return vs Market: KWR exceeded the US Market which returned 12% over the past year.


Shareholder returns

KWRIndustryMarket
7 Day-2.9%-4.6%-4.1%
30 Day6.6%-0.5%-0.2%
90 Day-1.3%3.0%2.8%
1 Year22.9%21.8%5.1%2.7%14.6%12.0%
3 Year22.8%19.6%10.1%-10.2%35.8%26.8%
5 Year145.2%133.0%55.0%19.3%75.2%55.6%

Price Volatility Vs. Market

How volatile is Quaker Chemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quaker Chemical undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KWR ($191.57) is trading below our estimate of fair value ($223.57)

Significantly Below Fair Value: KWR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KWR is unprofitable, so we can't compare its PE Ratio to the US Chemicals industry average.

PE vs Market: KWR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KWR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KWR is overvalued based on its PB Ratio (2.9x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

How is Quaker Chemical forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

200.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: KWR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KWR's is expected to become profitable in the next 3 years.

Revenue vs Market: KWR's revenue (4.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: KWR's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KWR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quaker Chemical performed over the past 5 years?

-21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWR is currently unprofitable.

Growing Profit Margin: KWR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KWR is unprofitable, and losses have increased over the past 5 years at a rate of 21.7% per year.

Accelerating Growth: Unable to compare KWR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KWR is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-19.3%).


Return on Equity

High ROE: KWR has a negative Return on Equity (-2.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is Quaker Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: KWR's short term assets ($849.2M) exceed its short term liabilities ($282.7M).

Long Term Liabilities: KWR's short term assets ($849.2M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: KWR's debt to equity ratio (95.5%) is considered high.

Reducing Debt: KWR's debt to equity ratio has increased from 16.7% to 95.5% over the past 5 years.

Debt Coverage: KWR's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: KWR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Quaker Chemical current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KWR's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: KWR's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: KWR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: KWR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KWR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KWR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Mike Barry (62 yo)

12yrs

Tenure

US$7,192,082

Compensation

Mr. Michael F. Barry, also known as Mike, has been the Chairman of the Board at Quaker Chemical Corporation since May 13, 2009 and has also been its Chief Executive Officer and President since October 4, 2 ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.19M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Barry
Chairman of the Board12yrsUS$7.19m0.80%
$ 27.4m
Mary Hall
Senior VP4.92yrsUS$1.05m0.034%
$ 1.2m
Wilbert Platzer
Senior VP of Global Operationsno dataUS$1.47m0.022%
$ 764.5k
Robert Traub
Senior VP8.58yrsUS$911.81k0.022%
$ 759.4k
Joseph Berquist
Senior VP of Global Specialty Businesses & Chief Strategy Officer10.5yrsUS$1.17m0.079%
$ 2.7m
Shane Hostetter
VP of Finance & Chief Accounting Officer6.08yrsno data0.018%
$ 598.4k
David Slinkman
Senior VP & Chief Technology Officer1.17yrsno data0.021%
$ 723.2k
Jan Nieman
VP of Global Strategy & Marketing and Global Leader – Grease & Fluid Power6.42yrsUS$706.21k0.027%
$ 911.1k
Kym Johnson
Senior VP & Chief Human Resources Officer1.17yrsno datano data
Dieter Laininger
Senior VP & MD of Asia Pacific9.33yrsno data0.030%
$ 1.0m
Adrian Steeples
Senior VP & MD – EMEA7.25yrsno data0.036%
$ 1.2m
Jeewat Bijlani
Senior VP & MD - Americas1.17yrsno data0.028%
$ 961.6k

6.4yrs

Average Tenure

56yo

Average Age

Experienced Management: KWR's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Barry
Chairman of the Board12yrsUS$7.19m0.80%
$ 27.4m
Ronald Naples
Chairman Emeritino dataUS$511.75kno data
Donald Caldwell
Lead Independent Director4.42yrsUS$196.72k0.035%
$ 1.2m
Robert Rock
Independent Director24.75yrsUS$176.72k0.074%
$ 2.5m
Peter Benoliel
Chairman Emeritino datano datano data
Ramaswami Seshasayee
Independent Director1.17yrsUS$116.25k0.0081%
$ 277.2k
Jeffry Frisby
Independent Director14.75yrsUS$170.47k0.043%
$ 1.5m
Michael Shannon
Independent Director1.17yrsUS$117.76k0.014%
$ 477.7k
Sanjay Hinduja
Independent Director1.17yrsUS$115.50k0.0081%
$ 276.2k
Mark Douglas
Independent Director7.75yrsUS$169.47k0.011%
$ 384.6k
William Osborne
Independent Director4.58yrsUS$166.97k0.025%
$ 847.0k
Fay West
Independent Director4.58yrsUS$189.47k0.023%
$ 769.9k

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: KWR's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KWR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Quaker Chemical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quaker Chemical Corporation
  • Ticker: KWR
  • Exchange: NYSE
  • Founded: 1918
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$3.410b
  • Shares outstanding: 17.80m
  • Website: https://www.quakerchem.com

Number of Employees


Location

  • Quaker Chemical Corporation
  • 901 East Hector Street
  • Conshohocken
  • Pennsylvania
  • 19428
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KWRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
QUCDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications. It operates through four segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:25
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.