QUAKER CHEMICAL CORPORATION (KWR) Stock Fundamental Analysis
NYSE:KWR - New York Stock Exchange, Inc. - US7473161070 - Common Stock - Currency: USD
Taking everything into account, KWR scores 6 out of 10 in our fundamental rating. KWR was compared to 85 industry peers in the Chemicals industry. KWR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KWR has a correct valuation and a medium 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
With a decent Return On Assets value of 4.45%, KWR is doing good in the industry, outperforming 72.94% of the companies in the same industry.
KWR has a better Return On Equity (8.59%) than 68.24% of its industry peers.
KWR has a Return On Invested Capital of 5.95%. This is in the better half of the industry: KWR outperforms 62.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KWR is in line with the industry average of 7.05%.
The 3 year average ROIC (5.46%) for KWR is below the current ROIC(5.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 8.59% | ||
| ROIC | 5.95% |
ROA(3y)2.68%
ROA(5y)2.7%
ROE(3y)5.15%
ROE(5y)5.43%
ROIC(3y)5.46%
ROIC(5y)4.89%
1.3 Margins
KWR has a Profit Margin of 6.32%. This is in the better half of the industry: KWR outperforms 76.47% of its industry peers.
KWR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.94%, KWR is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
In the last couple of years the Operating Margin of KWR has grown nicely.
KWR has a Gross Margin of 37.29%. This is in the better half of the industry: KWR outperforms 77.65% of its industry peers.
KWR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.94% | ||
| PM (TTM) | 6.32% | ||
| GM | 37.29% |
OM growth 3Y3.1%
OM growth 5Y2.74%
PM growth 3Y-2.72%
PM growth 5Y17.86%
GM growth 3Y3.37%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KWR is destroying value.
KWR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KWR remains at a similar level compared to 5 years ago.
Compared to 1 year ago, KWR has an improved debt to assets ratio.
2.2 Solvency
KWR has an Altman-Z score of 2.38. 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's Altman-Z score of 2.38 is fine compared to the rest of the industry. KWR outperforms 74.12% of its industry peers.
The Debt to FCF ratio of KWR is 4.34, which is a neutral value as it means it would take KWR, 4.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, KWR belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that KWR is not too dependend on debt financing.
KWR's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. KWR outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.73
WACC8.15%
2.3 Liquidity
KWR has a Current Ratio of 2.31. This indicates that KWR is financially healthy and has no problem in meeting its short term obligations.
KWR has a Current ratio of 2.31. This is in the better half of the industry: KWR outperforms 67.06% of its industry peers.
KWR has a Quick Ratio of 1.71. This is a normal value and indicates that KWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.71, KWR is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for KWR have decreased by -2.75% in the last year.
Measured over the past 5 years, KWR shows a small growth in Earnings Per Share. The EPS has been growing by 4.85% on average per year.
The Revenue has decreased by -5.81% in the past year.
KWR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.17% yearly.
EPS 1Y (TTM)-2.75%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-25.28%
Revenue 1Y (TTM)-5.81%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-4.93%
3.2 Future
KWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
KWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y7%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue Next Year2.28%
Revenue Next 2Y3.52%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.53, which indicates a correct valuation of KWR.
Compared to the rest of the industry, the Price/Earnings ratio of KWR indicates a somewhat cheap valuation: KWR is cheaper than 65.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KWR to the average of the S&P500 Index (27.63), we can say KWR is valued rather cheaply.
The Price/Forward Earnings ratio is 12.64, which indicates a correct valuation of KWR.
63.53% of the companies in the same industry are more expensive than KWR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.85. KWR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KWR.
77.65% of the companies in the same industry are more expensive than KWR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.92 | ||
| EV/EBITDA | 8.05 |
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.
KWR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KWR's earnings are expected to grow with 12.63% in the coming years.
PEG (NY)1.93
PEG (5Y)2.79
EPS Next 2Y12.29%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
KWR has a Yearly Dividend Yield of 1.91%.
The stock price of KWR dropped by -27.27% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.98, KWR has a dividend in line with its industry peers.
KWR's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of KWR has a limited annual growth rate of 5.75%.
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)5.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KWR pays out 28.53% of its income as dividend. This is a sustainable payout ratio.
KWR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.53%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
100.63
-0.97 (-0.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.86%
Inst Owner Change0.49%
Ins Owners0.83%
Ins Owner Change-7.56%
Market Cap1.78B
Analysts76
Price Target178.5 (77.38%)
Short Float %11.28%
Short Ratio10.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.86
Dividend Growth(5Y)5.75%
DP28.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.63%
Min EPS beat(2)-13.37%
Max EPS beat(2)-9.89%
EPS beat(4)1
Avg EPS beat(4)-6.02%
Min EPS beat(4)-13.37%
Max EPS beat(4)3.99%
EPS beat(8)5
Avg EPS beat(8)4.17%
EPS beat(12)8
Avg EPS beat(12)6.92%
EPS beat(16)11
Avg EPS beat(16)8.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-3.33%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)2.12%
Revenue beat(8)3
Avg Revenue beat(8)-2.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.46%
Revenue beat(16)8
Avg Revenue beat(16)1.25%
PT rev (1m)-1.78%
PT rev (3m)-8.14%
EPS NQ rev (1m)-3.63%
EPS NQ rev (3m)-20.31%
EPS NY rev (1m)-5.98%
EPS NY rev (3m)-10.25%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.64 | ||
| P/S | 0.97 | ||
| P/FCF | 10.92 | ||
| P/OCF | 8.69 | ||
| P/B | 1.31 | ||
| P/tB | 234.74 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)7.44
EY7.39%
EPS(NY)7.96
Fwd EY7.91%
FCF(TTM)9.21
FCFY9.15%
OCF(TTM)11.58
OCFY11.51%
SpS104.11
BVpS76.6
TBVpS0.43
PEG (NY)1.93
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 8.59% | ||
| ROCE | 9.02% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.5% | ||
| ROICexgc | 19.07% | ||
| OM | 10.94% | ||
| PM (TTM) | 6.32% | ||
| GM | 37.29% | ||
| FCFM | 8.85% |
ROA(3y)2.68%
ROA(5y)2.7%
ROE(3y)5.15%
ROE(5y)5.43%
ROIC(3y)5.46%
ROIC(5y)4.89%
ROICexc(3y)5.95%
ROICexc(5y)5.3%
ROICexgc(3y)17.1%
ROICexgc(5y)16.42%
ROCE(3y)8.29%
ROCE(5y)7.42%
ROICexcg growth 3Y4.86%
ROICexcg growth 5Y11.24%
ROICexc growth 3Y9.78%
ROICexc growth 5Y16.58%
OM growth 3Y3.1%
OM growth 5Y2.74%
PM growth 3Y-2.72%
PM growth 5Y17.86%
GM growth 3Y3.37%
GM growth 5Y1.51%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 49.68% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 71.69% | ||
| Profit Quality | 140.01% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.38 |
F-Score7
WACC8.15%
ROIC/WACC0.73
Cap/Depr(3y)44.14%
Cap/Depr(5y)35.75%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.75%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-25.28%
EPS Next Y7%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.81%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-4.93%
Revenue Next Year2.28%
Revenue Next 2Y3.52%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
EBIT growth 1Y-9.36%
EBIT growth 3Y4.61%
EBIT growth 5Y13.19%
EBIT Next Year43.54%
EBIT Next 3Y18.53%
EBIT Next 5YN/A
FCF growth 1Y-32.24%
FCF growth 3Y81.11%
FCF growth 5Y19.46%
OCF growth 1Y-26.68%
OCF growth 3Y61.13%
OCF growth 5Y19.95%