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. KWR has only an average score on both its financial health and profitability. KWR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KWR was profitable.
KWR had a positive operating cash flow in the past year.
KWR had positive earnings in 4 of the past 5 years.
In the past 5 years KWR always reported a positive cash flow from operatings.
1.2 Ratios
KWR has a better Return On Assets (3.53%) than 68.24% of its industry peers.
KWR has a better Return On Equity (6.79%) than 67.06% of its industry peers.
KWR has a Return On Invested Capital (5.45%) which is comparable to the rest of the industry.
KWR had an Average Return On Invested Capital over the past 3 years of 5.46%. This is in line with the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 6.79% | ||
| ROIC | 5.45% |
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 better Profit Margin (5.19%) than 67.06% of its industry peers.
In the last couple of years the Profit Margin of KWR has grown nicely.
With a Operating Margin value of 10.45%, KWR perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
KWR's Operating Margin has improved in the last couple of years.
The Gross Margin of KWR (36.72%) is better than 76.47% of its industry peers.
KWR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.45% | ||
| PM (TTM) | 5.19% | ||
| GM | 36.72% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KWR is destroying value.
Compared to 1 year ago, KWR has less shares outstanding
The number of shares outstanding for KWR remains at a similar level compared to 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 2.45. 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.
With a decent Altman-Z score value of 2.45, KWR is doing good in the industry, outperforming 69.41% of the companies in the same industry.
The Debt to FCF ratio of KWR is 5.91, which is a neutral value as it means it would take KWR, 5.91 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.91, KWR is doing good in the industry, outperforming 75.29% of the companies in the same industry.
KWR has a Debt/Equity ratio of 0.50. This is a neutral value indicating KWR is somewhat dependend on debt financing.
KWR has a Debt to Equity ratio of 0.50. This is in the better half of the industry: KWR outperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.65
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.45 indicates that KWR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.45, KWR is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that KWR should not have too much problems paying its short term obligations.
The Quick ratio of KWR (1.79) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The earnings per share for KWR have decreased strongly by -11.72% in the last year.
The Earnings Per Share has been growing slightly by 4.85% on average over the past years.
KWR shows a decrease in Revenue. In the last year, the revenue decreased by -5.72%.
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)-11.72%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-24.4%
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-5.71%
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 11.04% yearly.
KWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.20% yearly.
EPS Next Y1.35%
EPS Next 2Y8.86%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue Next Year0.87%
Revenue Next 2Y3.07%
Revenue Next 3Y3.2%
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.
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 correctly with a Price/Earnings ratio of 16.15.
KWR's Price/Earnings ratio is a bit cheaper when compared to the industry. KWR is cheaper than 61.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, KWR is valued a bit cheaper.
KWR is valuated correctly with a Price/Forward Earnings ratio of 12.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KWR indicates a somewhat cheap valuation: KWR is cheaper than 62.35% of the companies listed in the same industry.
KWR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KWR is valued a bit cheaper than 61.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KWR indicates a somewhat cheap valuation: KWR is cheaper than 75.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KWR may justify a higher PE ratio.
PEG (NY)11.94
PEG (5Y)3.33
EPS Next 2Y8.86%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
KWR has a Yearly Dividend Yield of 1.67%.
KWR's Dividend Yield is comparable with the industry average which is at 3.69.
Compared to the average S&P500 Dividend Yield of 2.42, KWR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of KWR has a limited annual growth rate of 5.75%.
KWR has paid a dividend for at least 10 years, which is a reliable track record.
KWR has decreased its dividend recently.
Dividend Growth(5Y)5.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KWR pays out 35.66% of its income as dividend. This is a sustainable payout ratio.
The dividend of KWR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.66%
EPS Next 2Y8.86%
EPS Next 3Y11.04%
111.94
-3.21 (-2.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.63%
Inst Owner Change1.93%
Ins Owners0.88%
Ins Owner Change-4.11%
Market Cap1.98B
Analysts76
Price Target148.92 (33.04%)
Short Float %13.16%
Short Ratio10.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.86
Dividend Growth(5Y)5.75%
DP35.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.86%
Min EPS beat(2)-13.37%
Max EPS beat(2)-0.36%
EPS beat(4)0
Avg EPS beat(4)-7.1%
Min EPS beat(4)-13.37%
Max EPS beat(4)-0.36%
EPS beat(8)4
Avg EPS beat(8)-1.01%
EPS beat(12)8
Avg EPS beat(12)6.91%
EPS beat(16)10
Avg EPS beat(16)5.93%
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)2.12%
Revenue beat(8)2
Avg Revenue beat(8)-2.72%
Revenue beat(12)5
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)6.96%
PT rev (3m)-16.57%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-10.26%
EPS NY rev (1m)1.44%
EPS NY rev (3m)-5.92%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 12.7 | ||
| P/S | 1.09 | ||
| P/FCF | 15.88 | ||
| P/OCF | 11.35 | ||
| P/B | 1.43 | ||
| P/tB | 63.95 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)6.93
EY6.19%
EPS(NY)8.82
Fwd EY7.88%
FCF(TTM)7.05
FCFY6.3%
OCF(TTM)9.86
OCFY8.81%
SpS102.54
BVpS78.39
TBVpS1.75
PEG (NY)11.94
PEG (5Y)3.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 6.79% | ||
| ROCE | 8.26% | ||
| ROIC | 5.45% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 16.65% | ||
| OM | 10.45% | ||
| PM (TTM) | 5.19% | ||
| GM | 36.72% | ||
| FCFM | 6.88% |
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-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 59.18% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.77% | ||
| Profit Quality | 132.45% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 2.45 |
F-Score5
WACC8.43%
ROIC/WACC0.65
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)-11.72%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-24.4%
EPS Next Y1.35%
EPS Next 2Y8.86%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-5.71%
Revenue Next Year0.87%
Revenue Next 2Y3.07%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y4.61%
EBIT growth 5Y13.19%
EBIT Next Year39.92%
EBIT Next 3Y15.53%
EBIT Next 5YN/A
FCF growth 1Y107.72%
FCF growth 3Y81.11%
FCF growth 5Y19.46%
OCF growth 1Y102.91%
OCF growth 3Y61.13%
OCF growth 5Y19.95%