QUAKER CHEMICAL CORPORATION (KWR)
US7473161070 - Common Stock
We assign a fundamental rating of 6 out of 10 to KWR. KWR was compared to 84 industry peers in the Chemicals industry. While KWR has a great health rating, its profitability is only average at the moment. 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.
In the past year KWR had a positive cash flow from operations.
Of the past 5 years KWR 4 years were profitable.
KWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KWR (4.13%) is better than 63.10% of its industry peers.
KWR has a Return On Equity of 8.11%. This is in the better half of the industry: KWR outperforms 60.71% of its industry peers.
KWR has a better Return On Invested Capital (7.47%) than 67.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KWR is in line with the industry average of 7.41%.
The 3 year average ROIC (6.00%) for KWR is below the current ROIC(7.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 8.11% | ||
| ROIC | 7.47% |
ROA(3y)2.55%
ROA(5y)2.03%
ROE(3y)5.19%
ROE(5y)4.22%
ROIC(3y)6%
ROIC(5y)5.12%
1.3 Margins
KWR's Profit Margin of 5.74% is fine compared to the rest of the industry. KWR outperforms 66.67% of its industry peers.
KWR's Profit Margin has declined in the last couple of years.
KWR's Operating Margin of 11.37% is fine compared to the rest of the industry. KWR outperforms 64.29% of its industry peers.
KWR's Operating Margin has been stable in the last couple of years.
KWR has a Gross Margin of 36.13%. This is in the better half of the industry: KWR outperforms 75.00% of its industry peers.
KWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 5.74% | ||
| GM | 36.13% |
OM growth 3Y6.7%
OM growth 5Y-1.15%
PM growth 3Y27.27%
PM growth 5Y-3.39%
GM growth 3Y-0.08%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KWR is destroying value.
The number of shares outstanding for KWR remains at a similar level compared to 1 year ago.
The number of shares outstanding for KWR has been increased compared to 5 years ago.
KWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.09 indicates that KWR is not in any danger for bankruptcy at the moment.
The Altman-Z score of KWR (3.09) is better than 79.76% of its industry peers.
KWR has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as KWR would need 3.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.14, KWR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that KWR is somewhat dependend on debt financing.
The Debt to Equity ratio of KWR (0.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.89
WACC8.38%
2.3 Liquidity
A Current Ratio of 2.52 indicates that KWR has no problem at all paying its short term obligations.
KWR has a better Current ratio (2.52) than 66.67% of its industry peers.
A Quick Ratio of 1.89 indicates that KWR should not have too much problems paying its short term obligations.
KWR's Quick ratio of 1.89 is fine compared to the rest of the industry. KWR outperforms 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
KWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.32%, which is quite impressive.
Measured over the past 5 years, KWR shows a small growth in Earnings Per Share. The EPS has been growing by 4.80% on average per year.
The Revenue has been growing slightly by 0.49% in the past year.
KWR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.63% yearly.
EPS 1Y (TTM)30.32%
EPS 3Y16.97%
EPS 5Y4.8%
EPS growth Q2Q28.06%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y11.27%
Revenue growth 5Y17.63%
Revenue growth Q2Q-3.65%
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 14.87% yearly.
KWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.94% yearly.
EPS Next Y15.59%
EPS Next 2Y16.07%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y3.31%
Revenue Next 3Y3.94%
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.
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 24.26, which indicates a rather expensive current valuation of KWR.
Compared to the rest of the industry, the Price/Earnings ratio of KWR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KWR to the average of the S&P500 Index (28.28), we can say KWR is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.98, KWR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KWR.
When comparing the Price/Forward Earnings ratio of KWR to the average of the S&P500 Index (20.88), we can say KWR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 20.98 |
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.
KWR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KWR is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.9 | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
KWR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 14.87% in the coming years.
PEG (NY)1.56
PEG (5Y)5.05
EPS Next 2Y16.07%
EPS Next 3Y14.87%
5. Dividend
5.1 Amount
KWR has a yearly dividend return of 0.97%, which is pretty low.
KWR's Dividend Yield is comparable with the industry average which is at 3.12.
Compared to an average S&P500 Dividend Yield of 2.41, KWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of KWR has a limited annual growth rate of 3.92%.
KWR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.21% of the earnings are spent on dividend by KWR. This is a low number and sustainable payout ratio.
KWR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.21%
EPS Next 2Y16.07%
EPS Next 3Y14.87%
QUAKER CHEMICAL CORPORATION
NYSE:KWR (5/3/2024, 7:04:00 PM)
After market: 185.56 0 (0%)185.56
-7.14 (-3.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 20.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.56
PEG (5Y)5.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 8.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.37% | ||
| PM (TTM) | 5.74% | ||
| GM | 36.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.32%
EPS 3Y16.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.49%
Revenue growth 3Y11.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y