NYSE:KWR

Stock Analysis Report

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Market Cap

US$4.5b

Last Updated

2021/08/01 22:15 UTC

Data Sources

Company Financials +

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 with questionable track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KWR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

KWR

1.9%

US Chemicals

-0.4%

US Market


1 Year Return

29.8%

KWR

35.3%

US Chemicals

35.9%

US Market

Return vs Industry: KWR underperformed the US Chemicals industry which returned 35.3% over the past year.

Return vs Market: KWR underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

KWRIndustryMarket
7 Day5.0%1.9%-0.4%
30 Day5.6%0.4%-0.3%
90 Day4.2%-1.4%3.1%
1 Year30.7%29.8%37.9%35.3%38.0%35.9%
3 Year54.8%51.2%42.2%21.3%62.9%52.7%
5 Year168.8%157.2%98.4%59.7%121.3%96.9%

Long-Term 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?

42.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KWR ($251.74) is trading above our estimate of fair value ($179.79)

Significantly Below Fair Value: KWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KWR is poor value based on its PE Ratio (42.1x) compared to the US Chemicals industry average (25x).

PE vs Market: KWR is poor value based on its PE Ratio (42.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KWR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: KWR is overvalued based on its PB Ratio (3.4x) compared to the US Chemicals industry average (3x).


Future Growth

How is Quaker Chemical forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWR's forecast earnings growth (26.3% per year) is above the savings rate (2%).

Earnings vs Market: KWR's earnings (26.3% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KWR's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: KWR's revenue (3.1% 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


Past Performance

How has Quaker Chemical performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWR has high quality earnings.

Growing Profit Margin: KWR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KWR's earnings have declined by 12.1% per year over the past 5 years.

Accelerating Growth: KWR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KWR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (28.2%).


Return on Equity

High ROE: KWR's Return on Equity (8%) is considered low.


Financial Health

How is Quaker Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: KWR's short term assets ($831.0M) exceed its short term liabilities ($396.4M).

Long Term Liabilities: KWR's short term assets ($831.0M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: KWR's debt to equity ratio (68.2%) is considered high.

Reducing Debt: KWR's debt to equity ratio has increased from 25.1% to 68.2% over the past 5 years.

Debt Coverage: KWR's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: KWR's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KWR's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KWR's dividend (0.63%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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?

4.5yrs

Average management tenure


CEO

Mike Barry (63 yo)

12.75yrs

Tenure

US$7,045,414

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 ($USD7.05M) is above average for companies of similar size in the US market ($USD5.32M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KWR's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: KWR's board of directors are considered experienced (5.4 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$4.499b
  • Shares outstanding: 17.87m
  • Website: https://www.quakerchem.com

Number of Employees


Location

  • Quaker Chemical Corporation
  • One Quaker Park
  • 901 East Hector Street
  • Conshohocken
  • Pennsylvania
  • 19428-2380
  • United States

Listings


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 Analysis2021/08/01 22:15
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.