Quaker Houghton Fundamental Analysis (NYSE: KWR)
Quaker Houghton (NYSE: KWR) shows weak financial fundamentals with a PE ratio of 30.60, profit margin of 4.94%, and ROE of 7.12%. The company generates $2.0B in annual revenue with weak year-over-year growth of 2.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D 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
ModerateKWR shows balanced valuation metrics.
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 30.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KWR's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Quaker Houghton at 2.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.54 times EBITDA. This is generally considered low.
How Well Does KWR Make Money?
Net Profit Margin
For every $100 in sales, Quaker Houghton keeps $4.94 as profit after all expenses.
Operating Margin
Core operations generate 9.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.12 in profit for every $100 of shareholder equity.
ROA
Quaker Houghton generates $3.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Quaker Houghton generates limited operating cash flow of $131.64M, signaling weaker underlying cash strength.
Free Cash Flow
Quaker Houghton produces free cash flow of $90.66M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.25 in free cash annually.
FCF Yield
KWR converts 3.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How KWR Stacks Against Its Sector Peers
| Metric | KWR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.60 | 27.45 | Worse (Expensive) |
| ROE | 7.12% | 1182.00% | Weak |
| Net Margin | 4.94% | 195.00% | Weak |
| Debt/Equity | 0.66 | 0.75 | Neutral |
| Current Ratio | 2.46 | 3.28 | Strong Liquidity |
| ROA | 3.43% | 476796.00% | Weak |
KWR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Quaker Houghton's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.10%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-106.36%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-22.43%
Industry Style: Cyclical, Commodity, Value
Declining