📊 KWR Key Takeaways
Is Quaker Chemical Corp. (KWR) a Good Investment?
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.
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.
Why Buy Quaker Chemical Corp. Stock? 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
- 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
- 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
- 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
- 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
- Operating margin
- Interest coverage
Quaker Chemical Corp. (KWR) Financial Metrics & Key Ratios
💡 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 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 |
|---|---|---|---|
| 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.
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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined 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. 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: 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. 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 $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 68% 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).