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 an average financial health and profitability rating. 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.
Each year in the past 5 years KWR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.53%, KWR is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
KWR's Return On Equity of 6.79% is in line compared to the rest of the industry. KWR outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.45%, KWR is in line with its industry, outperforming 56.47% 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 7.01%.
| 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's Profit Margin of 5.19% is fine compared to the rest of the industry. KWR outperforms 67.06% of its industry peers.
KWR's Profit Margin has improved in the last couple of years.
The Operating Margin of KWR (10.45%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KWR has grown nicely.
KWR has a Gross Margin of 36.72%. This is in the better half of the industry: KWR outperforms 76.47% of its industry peers.
In the last couple of years the Gross Margin of KWR has grown nicely.
| 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
KWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KWR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KWR has about the same amount of shares outstanding.
The debt/assets ratio for KWR has been reduced compared to a year ago.
2.2 Solvency
KWR has an Altman-Z score of 2.40. 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 2.40 is fine compared to the rest of the industry. KWR outperforms 68.24% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.91, KWR is in the better half of the industry, outperforming 74.12% 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 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.65
WACC8.37%
2.3 Liquidity
A Current Ratio of 2.45 indicates that KWR has no problem at all paying its short term obligations.
The Current ratio of KWR (2.45) is better than 71.76% of its industry peers.
A Quick Ratio of 1.79 indicates that KWR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.79, KWR is doing good in the industry, outperforming 77.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
KWR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.72%.
KWR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.85% yearly.
KWR shows a decrease in Revenue. In the last year, the revenue decreased by -5.72%.
The Revenue has been growing by 10.17% on average over the past years. This is quite good.
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%-5.72%
3.2 Future
The Earnings Per Share is expected to grow by 12.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y7%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y2.96%
Revenue Next 3Y3.02%
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
The Price/Earnings ratio is 15.51, which indicates a correct valuation of KWR.
Based on the Price/Earnings ratio, KWR is valued a bit cheaper than 64.71% of the companies in the same industry.
KWR is valuated rather cheaply when we compare the Price/Earnings ratio to 24.85, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.46 indicates a reasonable valuation of KWR.
Based on the Price/Forward Earnings ratio, KWR is valued a bit cheaper than 67.06% of the companies in the same industry.
KWR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 11.46 |
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.
Based on the Price/Free Cash Flow ratio, KWR is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 9.1 |
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.
KWR's earnings are expected to grow with 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.22
PEG (5Y)3.19
EPS Next 2Y12.29%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, KWR has a reasonable but not impressive dividend return.
The stock price of KWR dropped by -23.21% 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.
KWR's Dividend Yield is comparable with the industry average which is at 3.77.
Compared to the average S&P500 Dividend Yield of 2.40, KWR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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.
KWR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.66%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
107.47
-2.18 (-1.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.86%
Inst Owner Change-1.43%
Ins Owners0.83%
Ins Owner Change-7.56%
Market Cap1.90B
Analysts76
Price Target139.23 (29.55%)
Short Float %13.03%
Short Ratio10.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)-22%
PT rev (3m)-25.21%
EPS NQ rev (1m)-8.35%
EPS NQ rev (3m)-10.74%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-7.33%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 11.46 | ||
| P/S | 1.05 | ||
| P/FCF | 15.24 | ||
| P/OCF | 10.9 | ||
| P/B | 1.37 | ||
| P/tB | 61.36 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)6.93
EY6.45%
EPS(NY)9.38
Fwd EY8.73%
FCF(TTM)7.05
FCFY6.56%
OCF(TTM)9.86
OCFY9.18%
SpS102.59
BVpS78.43
TBVpS1.75
PEG (NY)2.22
PEG (5Y)3.19
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 | 2.4 |
F-Score5
WACC8.37%
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 Y7%
EPS Next 2Y12.29%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-5.72%
Revenue Next Year0.65%
Revenue Next 2Y2.96%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y4.61%
EBIT growth 5Y13.19%
EBIT Next Year43.54%
EBIT Next 3Y18.53%
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%