📊 KWR Key Takeaways
Is Quaker Chemical Corp. (KWR) a Good Investment?
Despite massive nominal revenue growth, Quaker Chemical exhibits deteriorating profitability and alarming cash flow dynamics. The company generated negative free cash flow of -$6.9M against operating cash flow of only $3.8M, signaling severe operational stress. Critically weak returns (ROE 1.4%, ROA 0.7%) and declining EPS (-102.2% YoY) despite revenue expansion indicate fundamental profitability challenges that offset positive liquidity metrics.
Strong liquidity and solid 36% gross margins underpin positive operating and free cash flow despite a slight net loss. Profitability is thin and debt service capacity is tight, with 1.2x interest coverage and sizable long-term debt weighing on earnings quality. Sustained margin improvement and deleveraging are needed to translate revenue scale into durable profitability.
Quaker Chemical Corp. Key Strengths (KWR)
- Solid liquidity position with current ratio of 2.45x and quick ratio of 1.77x
- Reasonable gross margin of 36.8% indicating some pricing power
- Moderate leverage with debt-to-equity ratio of 0.61x, providing debt capacity
- Robust liquidity (2.42x current, 1.72x quick)
- Healthy gross margin supporting cash generation (36%)
- Positive OCF and FCF providing financial flexibility
KWR Stock Risks: Quaker Chemical Corp. Investment Risks
- Negative free cash flow of -$6.9M signals the company is consuming cash despite positive net income, indicating unsustainable operations
- Anemic returns on equity (1.4%) and assets (0.7%) reflect severe capital inefficiency and value destruction for shareholders
- EPS declined 102.2% YoY while revenue surged 224203% YoY, suggesting the revenue growth came from a non-accretive acquisition or forced margin compression
- Thin profitability: 2.8% operating margin and slightly negative net margin
- Weak interest coverage (1.2x) alongside substantial long-term debt
- Negative ROE/ROA indicating low returns and earnings sensitivity
Key Metrics to Watch
- Free cash flow trend and operating cash flow conversion to identify if cash burn is structural or transient
- Return on equity and return on assets for evidence of operational improvement
- Margin sustainability as integration (if acquisition-driven) completes
- Operating margin
- Interest coverage
Quaker Chemical Corp. (KWR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.45x current ratio provides a solid financial cushion.
KWR Profit Margin, ROE & Profitability Analysis
KWR vs Energy Sector: How Quaker Chemical Corp. Compares
How Quaker Chemical Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quaker Chemical Corp. Stock Overvalued? KWR Valuation Analysis 2026
Based on fundamental analysis, Quaker Chemical Corp. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quaker Chemical Corp. Balance Sheet: KWR Debt, Cash & Liquidity
KWR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quaker Chemical Corp.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.26 reflects profitable operations.
KWR Revenue Growth, EPS Growth & YoY Performance
KWR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $442.9M | $12.9M | $0.73 |
| Q3 2025 | $462.3M | -$23.2M | $-1.32 |
| Q2 2025 | $463.6M | $34.9M | $1.94 |
| Q1 2025 | $442.9M | $12.9M | $0.73 |
| Q3 2024 | $462.3M | $32.3M | $1.81 |
| Q2 2024 | $463.6M | $29.3M | $1.63 |
| Q1 2024 | $469.8M | $29.5M | $1.64 |
| Q3 2023 | $490.6M | $25.9M | $1.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quaker Chemical Corp. Dividends, Buybacks & Capital Allocation
KWR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quaker Chemical Corp. (CIK: 0000081362)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KWR
What is the AI rating for KWR?
Quaker Chemical Corp. (KWR) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KWR's key strengths?
Claude: Solid liquidity position with current ratio of 2.45x and quick ratio of 1.77x. Reasonable gross margin of 36.8% indicating some pricing power. ChatGPT: Robust liquidity (2.42x current, 1.72x quick). Healthy gross margin supporting cash generation (36%).
What are the risks of investing in KWR?
Claude: Negative free cash flow of -$6.9M signals the company is consuming cash despite positive net income, indicating unsustainable operations. Anemic returns on equity (1.4%) and assets (0.7%) reflect severe capital inefficiency and value destruction for shareholders. ChatGPT: Thin profitability: 2.8% operating margin and slightly negative net margin. Weak interest coverage (1.2x) alongside substantial long-term debt.
What is KWR's revenue and growth?
Quaker Chemical Corp. reported revenue of $480.5M.
Does KWR pay dividends?
Quaker Chemical Corp. pays dividends, with $8.8M distributed to shareholders in the trailing twelve months.
Where can I find KWR SEC filings?
Official SEC filings for Quaker Chemical Corp. (CIK: 0000081362) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KWR's EPS?
Quaker Chemical Corp. has a diluted EPS of $1.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KWR's fundamental grade?
Based on our AI fundamental analysis in May 2026, Quaker Chemical Corp. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KWR stock overvalued or undervalued?
Valuation metrics for KWR: ROE of 1.4% (sector avg: 14%), net margin of 4.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KWR's AI grade for 2026?
Our dual AI analysis gives Quaker Chemical Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KWR's free cash flow?
Quaker Chemical Corp.'s operating cash flow is $3.8M, with capital expenditures of $10.7M. FCF margin is -1.4%.
How does KWR compare to other Energy stocks?
Vs Energy sector averages: Net margin 4.1% (avg: 12%), ROE 1.4% (avg: 14%), current ratio 2.45 (avg: 1.3).