QUAKER CHEMICAL CORPORATION (KWR) Stock Fundamental Analysis
NYSE:KWR - New York Stock Exchange, Inc. - US7473161070 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KWR. KWR was compared to 85 industry peers in the Chemicals industry. Both the profitability and the financial health of KWR get a neutral evaluation. Nothing too spectacular is happening here. KWR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KWR had positive earnings in the past year.
In the past year KWR had a positive cash flow from operations.
Of the past 5 years KWR 4 years were profitable.
In the past 5 years KWR always reported a positive cash flow from operatings.
1.2 Ratios
KWR has a better Return On Assets (4.47%) than 68.67% of its industry peers.
KWR has a better Return On Equity (8.45%) than 66.27% of its industry peers.
With a decent Return On Invested Capital value of 7.36%, KWR is doing good in the industry, outperforming 72.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KWR is in line with the industry average of 6.71%.
The 3 year average ROIC (6.00%) for KWR is below the current ROIC(7.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 8.45% | ||
| ROIC | 7.36% |
ROA(3y)2.55%
ROA(5y)2.03%
ROE(3y)5.19%
ROE(5y)4.22%
ROIC(3y)6%
ROIC(5y)5.12%
1.3 Margins
KWR's Profit Margin of 6.56% is fine compared to the rest of the industry. KWR outperforms 71.08% of its industry peers.
KWR's Profit Margin has declined in the last couple of years.
KWR has a better Operating Margin (11.83%) than 65.06% of its industry peers.
KWR's Operating Margin has been stable in the last couple of years.
KWR has a better Gross Margin (37.63%) than 77.11% of its industry peers.
KWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.83% | ||
| PM (TTM) | 6.56% | ||
| GM | 37.63% |
OM growth 3Y6.7%
OM growth 5Y-1.15%
PM growth 3Y27.27%
PM growth 5Y-3.39%
GM growth 3Y-0.08%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
KWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KWR has about the same amout of shares outstanding than it did 1 year ago.
KWR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KWR has been reduced compared to a year ago.
2.2 Solvency
KWR has an Altman-Z score of 2.69. This is not the best score and indicates that KWR is in the grey zone with still only limited risk for bankruptcy at the moment.
KWR has a better Altman-Z score (2.69) than 77.11% of its industry peers.
KWR has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as KWR would need 3.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.92, KWR is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
KWR has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.48, KWR is doing good in the industry, outperforming 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.83
WACC8.92%
2.3 Liquidity
A Current Ratio of 2.54 indicates that KWR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.54, KWR is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that KWR should not have too much problems paying its short term obligations.
KWR has a better Quick ratio (1.88) than 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.68% over the past year.
KWR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.80% yearly.
The Revenue has decreased by -5.49% in the past year.
Measured over the past years, KWR shows a quite strong growth in Revenue. The Revenue has been growing by 17.63% on average per year.
EPS 1Y (TTM)8.68%
EPS 3Y16.97%
EPS 5Y4.8%
EPS Q2Q%-7.8%
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y11.27%
Revenue growth 5Y17.63%
Sales Q2Q%-5.78%
3.2 Future
Based on estimates for the next years, KWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
KWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.02% yearly.
EPS Next Y1.26%
EPS Next 2Y5.21%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year-6.68%
Revenue Next 2Y-2.46%
Revenue Next 3Y0.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KWR is valuated rather expensively with a Price/Earnings ratio of 17.96.
The rest of the industry has a similar Price/Earnings ratio as KWR.
KWR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of KWR.
The rest of the industry has a similar Price/Forward Earnings ratio as KWR.
The average S&P500 Price/Forward Earnings ratio is at 22.70. KWR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KWR is on the same level as its industry peers.
KWR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KWR is cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KWR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of KWR may justify a higher PE ratio.
PEG (NY)14.21
PEG (5Y)3.74
EPS Next 2Y5.21%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
KWR has a Yearly Dividend Yield of 1.33%.
KWR's Dividend Yield is comparable with the industry average which is at 3.28.
With a Dividend Yield of 1.33, KWR pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of KWR has a limited annual growth rate of 3.92%.
KWR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of KWR decreased recently.
Dividend Growth(5Y)3.92%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
26.74% of the earnings are spent on dividend by KWR. This is a low number and sustainable payout ratio.
The dividend of KWR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.74%
EPS Next 2Y5.21%
EPS Next 3Y9.14%
141.68
-3.71 (-2.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.86%
Inst Owner Change-83.2%
Ins Owners0.83%
Ins Owner Change-7.6%
Market Cap2.52B
Analysts76
Price Target186.15 (31.39%)
Short Float %11.66%
Short Ratio10.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.76
Dividend Growth(5Y)3.92%
DP26.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.34%
Min EPS beat(2)-9.89%
Max EPS beat(2)-4.79%
EPS beat(4)2
Avg EPS beat(4)-1.24%
Min EPS beat(4)-9.89%
Max EPS beat(4)5.74%
EPS beat(8)6
Avg EPS beat(8)6.87%
EPS beat(12)8
Avg EPS beat(12)6.42%
EPS beat(16)12
Avg EPS beat(16)9.88%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)-2.46%
Revenue beat(4)0
Avg Revenue beat(4)-4.29%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)-1.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.73%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)1.39%
PT rev (1m)-4.2%
PT rev (3m)-4.2%
EPS NQ rev (1m)-6.27%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)-2.58%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.35 | ||
| P/FCF | 13.36 | ||
| P/OCF | 11.4 | ||
| P/B | 1.74 | ||
| P/tB | 65.75 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)7.89
EY5.57%
EPS(NY)8.47
Fwd EY5.98%
FCF(TTM)10.61
FCFY7.49%
OCF(TTM)12.42
OCFY8.77%
SpS104.71
BVpS81.26
TBVpS2.15
PEG (NY)14.21
PEG (5Y)3.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 8.45% | ||
| ROCE | 9.32% | ||
| ROIC | 7.36% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 23.36% | ||
| OM | 11.83% | ||
| PM (TTM) | 6.56% | ||
| GM | 37.63% | ||
| FCFM | 10.13% |
ROA(3y)2.55%
ROA(5y)2.03%
ROE(3y)5.19%
ROE(5y)4.22%
ROIC(3y)6%
ROIC(5y)5.12%
ROICexc(3y)6.49%
ROICexc(5y)5.52%
ROICexgc(3y)19.47%
ROICexgc(5y)17.78%
ROCE(3y)7.6%
ROCE(5y)6.49%
ROICexcg growth 3Y11.44%
ROICexcg growth 5Y-2.55%
ROICexc growth 3Y21.86%
ROICexc growth 5Y-14.82%
OM growth 3Y6.7%
OM growth 5Y-1.15%
PM growth 3Y27.27%
PM growth 5Y-3.39%
GM growth 3Y-0.08%
GM growth 5Y0.07%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.92 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 38.61% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.7% | ||
| Profit Quality | 154.41% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 2.69 |
F-Score7
WACC8.92%
ROIC/WACC0.83
Cap/Depr(3y)35.85%
Cap/Depr(5y)32.72%
Cap/Sales(3y)1.56%
Cap/Sales(5y)1.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.68%
EPS 3Y16.97%
EPS 5Y4.8%
EPS Q2Q%-7.8%
EPS Next Y1.26%
EPS Next 2Y5.21%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y11.27%
Revenue growth 5Y17.63%
Sales Q2Q%-5.78%
Revenue Next Year-6.68%
Revenue Next 2Y-2.46%
Revenue Next 3Y0.02%
Revenue Next 5YN/A
EBIT growth 1Y1.89%
EBIT growth 3Y18.73%
EBIT growth 5Y16.27%
EBIT Next Year37.42%
EBIT Next 3Y15.69%
EBIT Next 5YN/A
FCF growth 1Y2244.28%
FCF growth 3Y14.39%
FCF growth 5Y29.52%
OCF growth 1Y999.67%
OCF growth 3Y16.08%
OCF growth 5Y28.77%