NYSE:KWR

Stock Analysis Report

Executive Summary

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications in North America, Europe, the Middle East, Africa, the Asia/Pacific, and South America.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


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


Market Performance


7 Day Return

7.1%

KWR

1.3%

US Chemicals

1.8%

US Market


1 Year Return

-15.5%

KWR

-5.3%

US Chemicals

7.3%

US Market

Return vs Industry: KWR underperformed the US Chemicals industry which returned -5.3% over the past year.

Return vs Market: KWR underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

KWRIndustryMarket
7 Day7.1%1.3%1.8%
30 Day-2.2%-1.5%-0.7%
90 Day-11.2%-1.5%0.06%
1 Year-14.8%-15.5%8.5%-5.3%9.7%7.3%
3 Year58.4%54.2%40.8%15.1%46.3%36.9%
5 Year137.8%124.6%43.7%12.7%64.5%46.5%

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?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KWR ($163.14) is trading below our estimate of fair value ($191.47)

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


Price To Earnings Ratio

PE vs Industry: KWR is poor value based on its PE Ratio (38.2x) compared to the Chemicals industry average (18.9x).

PE vs Market: KWR is poor value based on its PE Ratio (38.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KWR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: KWR is overvalued based on its PB Ratio (4.8x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Quaker Chemical forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWR's forecast earnings growth (38% per year) is above the savings rate (2.7%).

Earnings vs Market: KWR's earnings (38% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: KWR's revenue (19.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: KWR's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KWR's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Quaker Chemical performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KWR's earnings have declined by -4.2% per year over the past 5 years.

Accelerating Growth: KWR's earnings growth over the past year (70.8%) exceeds its 5-year average (-4.2% per year).

Earnings vs Industry: KWR earnings growth over the past year (70.8%) exceeded the Chemicals industry -2.4%.


Return on Equity

High ROE: KWR's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: KWR has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: KWR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Quaker Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: KWR's short term assets ($412.2M) exceeds its short term liabilities ($153.2M)

Long Term Liabilities: KWR's short term assets (412.2M) exceeds its long term liabilities (113.4M)


Debt to Equity History and Analysis

Debt Level: KWR's debt to equity ratio (2.7%) is considered satisfactory

Reducing Debt: KWR's debt to equity ratio has reduced from 7.2% to 2.7% over the past 5 years.

Debt Coverage: KWR's debt is well covered by operating cash flow (653.5%).

Interest Coverage: KWR's interest payments on its debt are well covered by EBIT (29.8x coverage).


Balance Sheet

Inventory Level: KWR has a high level of physical assets or inventory.

Debt Coverage by Assets: KWR's debt is covered by short term assets (assets are 33.069560x debt).


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KWR's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KWR's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), KWR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KWR's dividends in 3 years are forecast to be well covered by earnings (16.2% payout ratio).


Next Steps

Management

What is the CEO of Quaker Chemical's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Mike Barry (61yo)

11yrs

Tenure

US$4,848,181

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 ($USD4.85M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

7.7yrs

Average Tenure

58yo

Average Age

Experienced Management: KWR's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

62yo

Average Age

Experienced Board: KWR's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$50,41320 May 19
Donald Caldwell
EntityIndividual
Role
Lead Director
Lead Director
Shares250
Max PriceUS$201.65
SellUS$609,18127 Nov 18
Jeffry Frisby
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,015
Max PriceUS$202.05
SellUS$503,00015 Nov 18
Dieter Laininger
EntityIndividual
Role
Senior Key Executive
VP, MD of South America & Global Leader of Primary Metals
Shares2,500
Max PriceUS$202.00
SellUS$153,89109 Nov 18
Mark Douglas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$205.19
SellUS$205,00009 Nov 18
Wilbert Platzer
EntityIndividual
Role
Senior Key Executive
President & MD - EMEA
Shares1,000
Max PriceUS$205.00

Ownership Breakdown


Management Team

  • Mike Barry (61yo)

    Chairman of the Board

    • Tenure: 11yrs
    • Compensation: US$4.85m
  • Wilbert Platzer (58yo)

    President & MD - EMEA

    • Tenure: 0yrs
    • Compensation: US$803.29k
  • Jan Nieman (58yo)

    VP of Global Strategy & Marketing and Global Leader – Grease & Fluid Power

    • Tenure: 5.4yrs
    • Compensation: US$706.21k
  • Joseph Berquist (48yo)

    MD of North America Operations & VP

    • Tenure: 9.5yrs
    • Compensation: US$868.89k
  • Dieter Laininger (56yo)

    VP, MD of South America & Global Leader of Primary Metals

    • Tenure: 8.3yrs
  • Ronald Ettinger (67yo)

    Vice President of Human Resources

    • Tenure: 7.8yrs
  • Robert Traub (54yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 7.5yrs
  • Shane Hostetter (38yo)

    Global Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Adrian Steeples (59yo)

    MD of Asia Pacific & VP

    • Tenure: 6.3yrs
  • Mary Hall (61yo)

    CFO, VP & Treasurer

    • Tenure: 3.9yrs
    • Compensation: US$924.20k

Board Members

  • Mike Barry (61yo)

    Chairman of the Board

    • Tenure: 11yrs
    • Compensation: US$4.85m
  • Bob Chappell (74yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$134.83k
  • Don Caldwell (73yo)

    Lead Director

    • Tenure: 3.4yrs
    • Compensation: US$153.33k
  • Robert Rock (69yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$136.08k
  • Sesh Seshasayee (71yo)

    Additional Director

    • Tenure: 0.2yrs
  • Jeff Frisby (63yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$134.33k
  • Sanjay Hinduja (55yo)

    Additional Director

    • Tenure: 0.2yrs
  • Mark Douglas (57yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$133.08k
  • Bill Osborne (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$131.83k
  • Fay West (50yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$142.58k

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$2.893b
  • Shares outstanding: 17.73m
  • Website: https://www.quakerchem.com

Number of Employees


Location

  • Quaker Chemical Corporation
  • One Quaker Park
  • 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 in North America, Europe, the Middl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.