Quaker Chemical (NYSE:KWR) - Share price, News & Analysis

Q: What is the Fair Price of KWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KWR ($193.74) is trading above our estimate of [[fair value]] ($133.1)

KWR fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	1/6
Financial Health	2/6
Dividends	3/6

KWR Stock Overview

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

Rewards

Earnings are forecast to grow 36.37% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (4.5%) are lower than last year (9.1%)

Quaker Chemical Competitors

Avient

NYSE:AVNT

US$4.5b

H.B. Fuller

NYSE:FUL

US$3.7b

Balchem

NasdaqGS:BCPC

US$4.3b

Atotech

NYSE:ATC

US$4.4b

Price History & Performance

Summary of all time highs, changes and price drops for Quaker Chemical
Historical stock prices
Current Share Price	US$193.74
52 Week High	US$276.60
52 Week Low	US$129.80
Beta	1.33
1 Month Change	45.49%
3 Month Change	31.55%
1 Year Change	-23.47%
3 Year Change	21.94%
5 Year Change	45.57%
Change since IPO	1,300.53%

Recent News & Updates

Aug 01

Quaker Chemical (NYSE:KWR) Is Increasing Its Dividend To $0.435

Quaker Chemical Corporation's ( NYSE:KWR ) dividend will be increasing from last year's payment of the same period to...

Shareholder Returns

	KWR	US Chemicals	US Market
7D	3.6%	5.9%	3.2%
1Y	-23.5%	-3.8%	-10.2%

Return vs Industry: KWR underperformed the US Chemicals industry which returned -3.8% over the past year.

Return vs Market: KWR underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is KWR's price volatile compared to industry and market?
KWR volatility
KWR Average Weekly Movement	9.0%
Chemicals Industry Average Movement	6.7%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: KWR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: KWR's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1918	4,700	Andy Tometich	https://www.quakerhoughton.com

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.

Quaker Chemical Fundamentals Summary

How do Quaker Chemical's earnings and revenue compare to its market cap?
KWR fundamental statistics
Market Cap	US$3.47b
Earnings (TTM)	US$83.01m
Revenue (TTM)	US$1.86b

41.8x

P/E Ratio

1.9x

P/S Ratio

Is KWR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KWR income statement (TTM)
Revenue	US$1.86b
Cost of Revenue	US$1.28b
Gross Profit	US$580.33m
Other Expenses	US$497.32m
Earnings	US$83.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.63
Gross Margin	31.16%
Net Profit Margin	4.46%
Debt/Equity Ratio	74.2%

How did KWR perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

36%

Payout Ratio

Does KWR pay a reliable dividends?

See KWR dividend history and benchmarks

When do you need to buy KWR by to receive an upcoming dividend?
Quaker Chemical dividend dates
Ex Dividend Date	Oct 14 2022
Dividend Pay Date	Oct 31 2022
Days until Ex dividend	61 days
Days until Dividend pay date	78 days

Does KWR pay a reliable dividends?

See KWR dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is KWR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KWR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KWR. This is calculated by dividing KWR's market cap by their current preferred multiple.
What is KWR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.47b

KWR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	18.6x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does KWR's PE Ratio compare to its peers?

KWR PE Ratio vs Peers

The above table shows the PE ratio for KWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.7x
AVNT Avient	17.7x	18.7%	US$4.5b
FUL H.B. Fuller	21.9x	15.7%	US$3.7b
BCPC Balchem	39.7x	12.7%	US$4.3b
ATC Atotech	36.8x	29.6%	US$4.4b
KWR Quaker Chemical	41.8x	36.4%	US$3.5b

Price-To-Earnings vs Peers: KWR is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does KWR's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: KWR is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the US Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is KWR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KWR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.8x
Fair PE Ratio	30.5x

Price-To-Earnings vs Fair Ratio: KWR is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

Share Price vs Fair Value

What is the Fair Price of KWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KWR ($193.74) is trading above our estimate of fair value ($133.1)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWR's forecast earnings growth (36.4% per year) is above the savings rate (1.9%).

Earnings vs Market: KWR's earnings (36.4% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: KWR's revenue (3.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: KWR's revenue (3.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KWR's Return on Equity is forecast to be high in 3 years time (24.8%)

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Past Performance

How has Quaker Chemical performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KWR has a large one-off loss of $26.8M impacting its June 30 2022 financial results.

Growing Profit Margin: KWR's current net profit margins (4.5%) are lower than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: KWR's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: KWR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KWR had negative earnings growth (-43.7%) over the past year, making it difficult to compare to the Chemicals industry average (19.9%).

Return on Equity

High ROE: KWR's Return on Equity (6.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Quaker Chemical's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KWR's short term assets ($1.0B) exceed its short term liabilities ($400.7M).

Long Term Liabilities: KWR's short term assets ($1.0B) do not cover its long term liabilities ($1.2B).

Debt to Equity History and Analysis

Debt Level: KWR's net debt to equity ratio (59%) is considered high.

Reducing Debt: KWR's debt to equity ratio has increased from 16.7% to 74.2% over the past 5 years.

Debt Coverage: KWR's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: KWR's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.90%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: KWR's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: KWR's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (3.96%).

Stability and Growth of Payments

Stable Dividend: KWR's dividends per share have been stable in the past 10 years.

Growing Dividend: KWR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.6%), KWR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (152.5%), KWR's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Andy Tometich (55 yo)

0.67

Tenure

US$4,250,417

Compensation

Mr. Andrew E. Tometich, also known as Andy, serves as Chief Executive Officer and President at Quaker Chemical Corporation since December 1, 2021 and serves as its Director. Mr. Tometich served as Executiv...

CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD4.25M) is below average for companies of similar size in the US market ($USD6.55M).

Compensation vs Earnings: Insufficient data to compare Andy's compensation with company performance.

Leadership Team

Experienced Management: KWR's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: KWR's board of directors are considered experienced (9.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31