QUAKER CHEMICAL CORPORATION (KWR) Stock Fundamental Analysis
NYSE:KWR - New York Stock Exchange, Inc. - US7473161070 - Common Stock - Currency: USD
KWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. KWR has an average financial health and profitability rating. KWR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KWR had positive earnings in the past year.
KWR had a positive operating cash flow in the past year.
KWR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KWR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KWR (3.53%) is better than 69.41% of its industry peers.
KWR has a Return On Equity of 6.79%. This is in the better half of the industry: KWR outperforms 67.06% of its industry peers.
With a Return On Invested Capital value of 5.45%, KWR perfoms like the industry average, outperforming 58.82% 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 6.81%.
| 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.
KWR's Profit Margin has improved in the last couple of years.
KWR has a Operating Margin of 10.45%. This is comparable to the rest of the industry: KWR outperforms 58.82% of its industry peers.
KWR's Operating Margin has improved in the last couple of years.
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.
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
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.
KWR has about the same amout of shares outstanding than it did 5 years ago.
KWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that KWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.44, 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.
The Debt to FCF ratio of KWR (5.91) is better than 75.29% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that KWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, KWR is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.63
WACC8.6%
2.3 Liquidity
A Current Ratio of 2.45 indicates that KWR has no problem at all paying its short term obligations.
KWR has a better Current ratio (2.45) than 67.06% of its industry peers.
KWR has a Quick Ratio of 1.79. This is a normal value and indicates that KWR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.79, KWR is doing good in the industry, outperforming 71.76% 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%.
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 Y1.49%
EPS Next 2Y8.79%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y3.04%
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
Based on the Price/Earnings ratio of 16.55, the valuation of KWR can be described as correct.
62.35% of the companies in the same industry are more expensive than KWR, based on the Price/Earnings ratio.
KWR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.61.
KWR is valuated correctly with a Price/Forward Earnings ratio of 13.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KWR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KWR to the average of the S&P500 Index (37.13), we can say KWR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KWR indicates a somewhat cheap valuation: KWR is cheaper than 61.18% of the companies listed 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 74.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 9.43 |
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)11.12
PEG (5Y)3.41
EPS Next 2Y8.79%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, KWR has a reasonable but not impressive dividend return.
KWR's Dividend Yield is comparable with the industry average which is at 3.56.
Compared to the average S&P500 Dividend Yield of 2.32, KWR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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.
The dividend of KWR decreased recently.
Dividend Growth(5Y)5.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
35.66% 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.
DP35.66%
EPS Next 2Y8.79%
EPS Next 3Y11.04%
114.71
-3.86 (-3.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.63%
Inst Owner Change0.04%
Ins Owners0.88%
Ins Owner Change-1.4%
Market Cap2.03B
Analysts82.22
Price Target148.92 (29.82%)
Short Float %13.53%
Short Ratio9.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)0%
PT rev (3m)-2.56%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)-10.85%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 13.03 | ||
| P/S | 1.12 | ||
| P/FCF | 16.27 | ||
| P/OCF | 11.64 | ||
| P/B | 1.46 | ||
| P/tB | 65.53 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)6.93
EY6.04%
EPS(NY)8.81
Fwd EY7.68%
FCF(TTM)7.05
FCFY6.15%
OCF(TTM)9.86
OCFY8.59%
SpS102.54
BVpS78.39
TBVpS1.75
PEG (NY)11.12
PEG (5Y)3.41
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 | 2.44 |
F-Score5
WACC8.6%
ROIC/WACC0.63
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 Y1.49%
EPS Next 2Y8.79%
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 Year0.98%
Revenue Next 2Y3.04%
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%