Quaker Chemical Corporation
Quaker Chemical Corporation Fundamental Analysis
Quaker Chemical Corporation (KWR) shows weak financial fundamentals with a PE ratio of -825.70, profit margin of -0.13%, and ROE of -0.18%. The company generates $1.9B in annual revenue with weak year-over-year growth of -5.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KWR's fundamental strength across five key dimensions:
Efficiency Score
WeakKWR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKWR trades at attractive valuation levels.
Growth Score
WeakKWR faces weak or negative growth trends.
Financial Health Score
ExcellentKWR maintains a strong and stable balance sheet.
Profitability Score
WeakKWR struggles to sustain strong margins.
Key Financial Metrics
Is KWR Expensive or Cheap?
P/E Ratio
KWR trades at -825.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KWR's PEG of -10.86 indicates potential undervaluation.
Price to Book
The market values Quaker Chemical Corporation at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.78 times EBITDA. This is generally considered low.
How Well Does KWR Make Money?
Net Profit Margin
For every $100 in sales, Quaker Chemical Corporation keeps $-0.13 as profit after all expenses.
Operating Margin
Core operations generate 3.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.18 in profit for every $100 of shareholder equity.
ROA
Quaker Chemical Corporation generates $-0.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Quaker Chemical Corporation generates limited operating cash flow of $136.57M, signaling weaker underlying cash strength.
Free Cash Flow
Quaker Chemical Corporation produces free cash flow of $121.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.98 in free cash annually.
FCF Yield
KWR converts 5.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-825.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-10.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KWR Stacks Against Its Sector Peers
| Metric | KWR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -825.70 | 24.91 | Better (Cheaper) |
| ROE | -0.18% | 840.00% | Weak |
| Net Margin | -0.13% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.68 | 0.55 | Weak (High Leverage) |
| Current Ratio | 2.42 | 4.94 | Strong Liquidity |
| ROA | -0.09% | -4176.00% (disorted) | Weak |
KWR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Quaker Chemical Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.03%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
213.71%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
111.22%
Industry Style: Cyclical, Commodity, Value
High Growth