QUAKER CHEMICAL CORPORATION (KWR) Stock Fundamental Analysis
NYSE:KWR - New York Stock Exchange, Inc. - US7473161070 - Common Stock - Currency: USD
Taking everything into account, KWR scores 5 out of 10 in our fundamental rating. KWR was compared to 85 industry peers in the Chemicals industry. Both the profitability and the financial health of KWR get a neutral evaluation. Nothing too spectacular is happening here. KWR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KWR was profitable.
KWR had a positive operating cash flow in the past year.
Of the past 5 years KWR 4 years were profitable.
In the past 5 years KWR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KWR (3.53%) is better than 69.41% 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 of 5.45%. This is comparable to the rest of the industry: KWR outperforms 58.82% of its industry peers.
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 6.78%.
| 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 68.24% of its industry peers.
KWR's Profit Margin has improved in the last couple of years.
KWR has a Operating Margin (10.45%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KWR has grown nicely.
KWR's Gross Margin of 36.72% is fine compared to the rest 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.
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
KWR has an Altman-Z score of 2.47. 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.
The Altman-Z score of KWR (2.47) is better than 72.94% of its industry peers.
KWR has a debt to FCF ratio of 5.91. This is a neutral value as KWR would need 5.91 years to pay back of all of its debts.
KWR has a better Debt to FCF ratio (5.91) than 75.29% of its industry peers.
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 better Debt to Equity ratio (0.50) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.72
WACC7.61%
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 Current ratio of 2.45. This is in the better half of the industry: KWR outperforms 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.
KWR's Quick ratio of 1.79 is fine compared to the rest of the industry. KWR outperforms 71.76% of its industry peers.
| 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 -19.13%.
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 -5.82%.
The Revenue has been growing by 10.17% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.13%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-19.72%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%4.28%
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.
The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y1.49%
EPS Next 2Y8.79%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue Next Year0.87%
Revenue Next 2Y2.99%
Revenue Next 3Y3.12%
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
A Price/Earnings ratio of 18.11 indicates a rather expensive valuation of KWR.
KWR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.82, KWR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.39, KWR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KWR is on the same level as its industry peers.
KWR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 13.39 |
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 71.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KWR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.17
PEG (5Y)3.73
EPS Next 2Y8.79%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
KWR has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 3.75, KWR has a dividend in line with its industry peers.
KWR's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| 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 been paying a dividend for at least 10 years, so it has 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.
KWR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.66%
EPS Next 2Y8.79%
EPS Next 3Y11.04%
117.91
+3.49 (+3.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.63%
Inst Owner Change-0.21%
Ins Owners0.88%
Ins Owner Change-0.65%
Market Cap2.08B
Analysts82.22
Price Target148.92 (26.3%)
Short Float %13.53%
Short Ratio9.97
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)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%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 13.39 | ||
| P/S | 1.15 | ||
| P/FCF | 16.73 | ||
| P/OCF | 11.96 | ||
| P/B | 1.5 | ||
| P/tB | 67.36 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)6.51
EY5.52%
EPS(NY)8.81
Fwd EY7.47%
FCF(TTM)7.05
FCFY5.98%
OCF(TTM)9.86
OCFY8.36%
SpS102.54
BVpS78.39
TBVpS1.75
PEG (NY)12.17
PEG (5Y)3.73
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 | 2.47 |
F-Score5
WACC7.61%
ROIC/WACC0.72
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)-19.13%
EPS 3Y2.79%
EPS 5Y4.85%
EPS Q2Q%-19.72%
EPS Next Y1.49%
EPS Next 2Y8.79%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y1.46%
Revenue growth 5Y10.17%
Sales Q2Q%4.28%
Revenue Next Year0.87%
Revenue Next 2Y2.99%
Revenue Next 3Y3.12%
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%