Quaker Chemical Corporation (KWR)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$161.50+0.73%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
Intact: The reason to own it still holds.
Quaker Chemical grows sales about 8% yearly. Gross profit rose $15 million last year. Cash flow from operations improved to $3.8 million in Q1. The company is buying back shares.
Leadership changes may hurt execution. Earnings missed last year. Cash flow progress is mixed. These could slow growth and profits.
The price is about 4% above our fair value near $149. Analysts expect about 6% revenue growth. Our fair value is below the Street median by 10%.
Breaks if: Gross profit increase falls below $15 million next year
Breaks if: Operating cash flow falls below $3.8 million next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and margin stability. The current thesis state is intact, supported by strong recent financial performance, but the valuation appears stretched compared to peers.
The market seems to have priced in a moderate expectations gap, indicating that investors are anticipating continued performance without significant surprises. However, the valuation is considered expensive relative to peers, suggesting that high expectations are already embedded in the stock.
Management is on track with priorities to increase revenue and maintain cost discipline, which supports a stable margin outlook. However, cash flow improvements are mixed, and there is a moderate risk of missing earnings expectations in the near term.
The long-term thesis hinges on management's ability to deliver consistent revenue growth and maintain margin stability. Key factors include guidance updates, inflation trends, and performance of sector peers, which could influence market sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the thesis. The company raised its dividend and plans share repurchases. This return of capital to shareholders is significant. There are no new threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 6% next year
Overall, KWR's fundamentals are solid, but the valuation is stretched, and risks remain. Not investment advice.