📊 KWR Key Takeaways
Is KWR a Good Investment? Thesis Analysis
Quaker Chemical generated massive revenue of $1.9B but remains unprofitable with negative net income and weak -0.1% net margins, indicating severe operational challenges in converting sales to earnings. The company's interest coverage ratio of 1.2x is dangerously low, leaving minimal buffer for any operational decline to service its $869.8M debt, representing an unacceptable risk profile.
Why Buy KWR? Key Strengths
- Positive operating cash flow of $136.5M demonstrates ability to generate cash despite losses
- Solid liquidity position with 2.42x current ratio and $179.8M in cash reserves
- Moderate leverage with 0.63x debt-to-equity ratio provides some financial flexibility
- Positive free cash flow of $80.6M despite net losses suggests underlying operational viability
KWR Investment Risks to Consider
- Unprofitable operations with -$2.5M net income and negative ROE/ROA despite $1.9B revenue indicates structural margin compression
- Critical interest coverage ratio of 1.2x leaves minimal safety margin; any operating income decline threatens debt servicing
- Operating margin of only 2.8% on massive revenue base suggests operational inefficiency or integration challenges from apparent acquisition
- Extreme revenue growth of 224203% YoY points to acquisition-related distortion; integrated business must prove sustainable profitability
Key Metrics to Watch
- Operating margin improvement trajectory toward industry norms (5-8% range)
- Net income path to profitability with focus on EBITDA trends
- Interest coverage ratio movement above 2.0x to establish debt service safety
- Operating cash flow sustainability and FCF conversion rates
- Post-acquisition integration progress and SG&A expense reduction
KWR Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.42x current ratio provides a solid financial cushion.
KWR Profitability Ratios
KWR vs Energy Sector
How QUAKER CHEMICAL CORP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KWR Overvalued or Undervalued?
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.
KWR Balance Sheet & Liquidity
KWR 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KWR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $492.4M | $14.3M | $0.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KWR Capital Allocation
KWR SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KWR's key strengths?
Claude: Positive operating cash flow of $136.5M demonstrates ability to generate cash despite losses. Solid liquidity position with 2.42x current ratio and $179.8M in cash reserves.
What are the risks of investing in KWR?
Claude: Unprofitable operations with -$2.5M net income and negative ROE/ROA despite $1.9B revenue indicates structural margin compression. Critical interest coverage ratio of 1.2x leaves minimal safety margin; any operating income decline threatens debt servicing.
What is KWR's revenue and growth?
QUAKER CHEMICAL CORP reported revenue of $1.9B.
Does KWR pay dividends?
QUAKER CHEMICAL CORP pays dividends, with $34.4M 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 $-0.14.
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 rating reflects both perspectives for balanced insights.
Is KWR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, QUAKER CHEMICAL CORP has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KWR stock overvalued or undervalued?
Valuation metrics for KWR: ROE of -0.2% (sector avg: 14%), net margin of -0.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KWR stock in 2026?
Our dual AI analysis gives QUAKER CHEMICAL CORP a combined SELL rating 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 $136.5M, with capital expenditures of $55.9M. FCF margin is 4.3%.
How does KWR compare to other Energy stocks?
Vs Energy sector averages: Net margin -0.1% (avg: 12%), ROE -0.2% (avg: 14%), current ratio 2.42 (avg: 1.3).