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 only an average score on both its financial health and profitability. 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.
Each year in the past 5 years KWR had a positive operating cash flow.
1.2 Ratios
KWR has a better Return On Assets (3.53%) than 69.41% of its industry peers.
KWR's Return On Equity of 6.79% is fine compared to the rest of the industry. KWR outperforms 68.24% 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 7.03%.
| 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 Profit Margin of 5.19%. This is in the better half of the industry: KWR outperforms 68.24% of its industry peers.
In the last couple of years the Profit Margin of KWR has grown nicely.
KWR has a Operating Margin (10.45%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KWR has grown nicely.
Looking at the Gross Margin, with a value of 36.72%, KWR is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
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.
The number of shares outstanding for KWR has been reduced compared to 1 year ago.
The number of shares outstanding for KWR remains at a similar level compared to 5 years ago.
KWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that KWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KWR's Altman-Z score of 2.39 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.
KWR has a Debt to FCF ratio of 5.91. This is in the better half of the industry: KWR outperforms 74.12% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that KWR is somewhat dependend on debt financing.
The Debt to Equity ratio of KWR (0.50) is better than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.64
WACC8.5%
2.3 Liquidity
KWR has a Current Ratio of 2.45. This indicates that KWR is financially healthy and has no problem in meeting its short term obligations.
KWR has a Current ratio of 2.45. This is in the better half of the industry: KWR outperforms 68.24% 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.
KWR has a Quick ratio of 1.79. This is in the better half of the industry: KWR outperforms 74.12% 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.
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.
KWR shows a decrease in Revenue. In the last year, the revenue decreased by -5.72%.
Measured over the past years, KWR shows a quite strong growth in Revenue. The Revenue has been growing by 10.17% on average per year.
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
Based on estimates for the next years, KWR will show a small growth in Earnings Per Share. The EPS will grow by 7.89% on average per year.
The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y-0.09%
EPS Next 2Y8.01%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue Next Year0.7%
Revenue Next 2Y2.81%
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
With a Price/Earnings ratio of 15.65, KWR is valued correctly.
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.
KWR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
KWR is valuated correctly with a Price/Forward Earnings ratio of 12.49.
Based on the Price/Forward Earnings ratio, KWR is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
KWR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
62.35% of the companies in the same industry are more expensive than KWR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KWR indicates a somewhat cheap valuation: KWR is cheaper than 77.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
The decent profitability rating of KWR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.22
EPS Next 2Y8.01%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, KWR has a reasonable but not impressive dividend return.
The stock price of KWR dropped by -22.00% 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 3.76, KWR has a dividend in line with its industry peers.
KWR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 2Y8.01%
EPS Next 3Y7.89%
108.44
-0.8 (-0.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.86%
Inst Owner Change1.93%
Ins Owners0.83%
Ins Owner Change-7.06%
Market Cap1.92B
Analysts76
Price Target139.23 (28.39%)
Short Float %13.03%
Short Ratio10.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)-8.9%
PT rev (3m)-25.21%
EPS NQ rev (1m)-9.89%
EPS NQ rev (3m)-11.19%
EPS NY rev (1m)-6.62%
EPS NY rev (3m)-12.21%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-2%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 12.49 | ||
| P/S | 1.06 | ||
| P/FCF | 15.38 | ||
| P/OCF | 11 | ||
| P/B | 1.38 | ||
| P/tB | 61.95 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)6.93
EY6.39%
EPS(NY)8.68
Fwd EY8%
FCF(TTM)7.05
FCFY6.5%
OCF(TTM)9.86
OCFY9.09%
SpS102.54
BVpS78.39
TBVpS1.75
PEG (NY)N/A
PEG (5Y)3.22
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 | 2.39 |
F-Score5
WACC8.5%
ROIC/WACC0.64
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 Y-0.09%
EPS Next 2Y8.01%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%-5.71%
Revenue Next Year0.7%
Revenue Next 2Y2.81%
Revenue Next 3Y3.02%
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%