# Quaker Chemical (KWR.US)

Canonical: https://gigainvestors.com/s/KWR

Analysis as of: 2026-10-16T07:29:43.806Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $158.55 per share; close as of 2026-10-15.

Estimated value: low $106.88 per share, central $120.69 per share, high $139.08 per share. Buy at or below the central value $120.69 per share. Valuation as of 2026-10-16T07:29:43.806Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.08×

- FY2018: 0.10×

- FY2019: 0.04×

- FY2020: 0.10×

- FY2021: 0.09×

- FY2022: 0.03×

- FY2023: 0.11×

- FY2024: 0.11×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.6%

- ROIC, second-lowest year: 2.9%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 36.0%

- Recent gross margin (lower of latest and 3-year median): 36.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: 7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.1%

- FY2017: 13.7%

- FY2018: 21.6%

- FY2019: 2.9%

- FY2020: 9.5%

- FY2021: 7.7%

- FY2022: 2.2%

- FY2023: 9.8%

- FY2024: 9.9%

- FY2025: 7.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $603M

- Net income, five-year total: $332M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.2 pp

- Working capital / revenue, final three-year average: 24.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.54×

- FY2022: -2.26×

- FY2023: 1.38×

- FY2024: 1.62×

- FY2025: -14.11×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.1% vs 9.8%

- Per-share earnings: 3.87 to 6.29 (three-year endpoint medians)

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: $696M

- Cumulative retained earnings: $232M

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.3%

- Per-share value change: $2.42

- Per-share value, starting three-year median: $3.87

- Per-share value, ending three-year median: $6.29

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 0.7%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: $545M

- ROIC, first three-year median: 20.1%

- ROIC, last three-year median: 9.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.67

- FY2017: $1.53

- FY2018: $4.47

- FY2019: $2.09

- FY2020: $2.23

- FY2021: $6.80

- FY2022: -$0.89

- FY2023: $6.29

- FY2024: $6.53

- FY2025: -$0.14

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.0%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 10.0%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.8%

- FY2017: -6.2%

- FY2018: -2.7%

- FY2019: -1.8%

- FY2020: -4.8%

- FY2021: 2.5%

- FY2022: -2.0%

- FY2023: -6.1%

- FY2024: -3.4%

- FY2025: -5.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Oct 2021 · "Quaker Chemical (KWR): Five-Year Losses and Slow 4% Revenue Growth Highlight Cautious Earnings Backdrop" (finance.yahoo.com, Nov 2025) · sales +2.7%

Story as of 2026-10-16T09:59:02.664Z; price observation 2026-10-15.

Price needs cash profits to grow 4.5% a year for ten years

- 2025-11-01: Quaker Chemical (KWR): Five-Year Losses and Slow 4% Revenue Growth Highlight Cautious Earnings Backdrop ([finance.yahoo.com](https://finance.yahoo.com/news/quaker-chemical-kwr-five-losses-052127812.html))

- 2026-08-06: Quaker Chemical's Q2 Earnings Beat, Sales Rise on Volume Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/quaker-chemicals-q2-earnings-beat-125900662.html))

### Sales · FY2024–2025

sales +2.7%; source https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm; observed 2026-02-23.

- FY2016: $747M 

- FY2017: $820M 

- FY2018: $868M 

- FY2019: $1.1B 

- FY2020: $1.4B 

- FY2021: $1.8B 

- FY2022: $1.9B 

- FY2023: $2.0B 

- FY2024: $1.8B 

- FY2025: $1.9B 

### Gross margin · FY2025

gross margin 36%; source https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm; observed 2026-02-23.

- FY2016: 37.4% 

- FY2017: 35.5% 

- FY2018: 36.0% 

- FY2019: 34.6% 

- FY2020: 36.2% 

- FY2021: 33.8% 

- FY2022: 31.5% 

- FY2023: 36.1% 

- FY2024: 37.3% 

- FY2025: 36.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm (filed 2026-02-23); FY2025: revenue 1888634000; grossProfit 679372000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KWR.US: Quaker Chemical Corporation, doing business as Quaker Houghton, provides industrial process fluids worldwide. The company develops, produces, and markets various formulated specialty chemical products; and offers chemical management services for various heavy industrial and manufacturing applications. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging and hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, and rod and wire drawing fluids. The company serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. Quaker Chemical Corporation was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

### Why customers stay

Margins ranged from 36% to 37.3% during 2023–25; it earns 9.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: grossProfit / revenue = 36.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: grossProfit / revenue = 37.3%.

- Source: https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm (filed 2026-02-23); FY2025: grossProfit / revenue = 36%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); 10-year return on capital observations [[2016,0.20055757949324954],[2017,0.13659964563592944],[2018,0.2157793183424344],[2019,0.02905660682897201],[2020,0.09490938900807563],[2021,0.07684306268898],[2022,0.021603005317256174],[2023,0.09801857388456699],[2024,0.09893753440821042],[2025,0.07099315136133358]]; median 0.09646398144632132. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 41.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2016: growth capex 0; upkeep 9954000; cash acquisitions 15024000; owner earnings 71015000. Growth capex plus acquisitions / owner earnings = 0.2115609378300359.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2017: growth capex 0; upkeep 10872000; cash acquisitions 5363000; owner earnings 29372000. Growth capex plus acquisitions / owner earnings = 0.1825888601389078.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2018: growth capex 0; upkeep 12886000; cash acquisitions 500000; owner earnings 66301000. Growth capex plus acquisitions / owner earnings = 0.007541364383644289.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2019: growth capex 0; upkeep 15545000; cash acquisitions 893412000; owner earnings 60972000. Growth capex plus acquisitions / owner earnings = 14.652824247195435.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2020: growth capex 0; upkeep 17901000; cash acquisitions 56230000; owner earnings 105003000. Growth capex plus acquisitions / owner earnings = 0.5355085092806873.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2021: growth capex 0; upkeep 21457000; cash acquisitions 42417000; owner earnings 186462000. Growth capex plus acquisitions / owner earnings = 0.22748334781349552.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2022: growth capex 0; upkeep 28539000; cash acquisitions 13115000; owner earnings 35997000. Growth capex plus acquisitions / owner earnings = 0.3643359168819624.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: growth capex 0; upkeep 38800000; cash acquisitions 0; owner earnings 155935000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: growth capex 0; upkeep 11282000; cash acquisitions 39302000; owner earnings 189481000. Growth capex plus acquisitions / owner earnings = 0.2074192135359218.

- Source: https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm (filed 2026-02-23); FY2025: growth capex 0; upkeep 55856000; cash acquisitions 164209000; owner earnings 35109000. Growth capex plus acquisitions / owner earnings = 4.677119826825031.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Dividend observations: [[2016,17625000],[2017,18613000],[2018,19319000],[2019,21830000],[2020,27563000],[2021,28599000],[2022,30103000],[2023,31650000],[2024,33170000],[2025,34393000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm (filed 2026-02-23); FY2025: cash repurchases 41521000 USD.

### Are managers owners

Insiders own 22.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KWR.US SharesStats.PercentInsiders = 22.16 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.5% yearly over ten years; actual decline was 7.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Ten-year compound average after fade. Initial solved rate 0.05129663398183404. Price 158.55; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.4913869239065844 → FY2025 2.0093393732365197. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $107.50 per share

- 2016-11: $127.24 per share

- 2016-12: $127.94 per share

- 2017-01: $128.50 per share

- 2017-02: $131.68 per share

- 2017-03: $131.66 per share

- 2017-04: $144.60 per share

- 2017-05: $139.39 per share

- 2017-06: $145.23 per share

- 2017-07: $141.87 per share

- 2017-08: $139.22 per share

- 2017-09: $147.95 per share

- 2017-10: $155.32 per share

- 2017-11: $164.78 per share

- 2017-12: $150.79 per share

- 2018-01: $153.90 per share

- 2018-02: $142.53 per share

- 2018-03: $148.13 per share

- 2018-04: $146.99 per share

- 2018-05: $152.85 per share

- 2018-06: $154.87 per share

- 2018-07: $177.54 per share

- 2018-08: $180.14 per share

- 2018-09: $202.21 per share

- 2018-10: $179.90 per share

- 2018-11: $206.24 per share

- 2018-12: $177.71 per share

- 2019-01: $204.46 per share

- 2019-02: $208.99 per share

- 2019-03: $200.33 per share

- 2019-04: $223.82 per share

- 2019-05: $180.86 per share

- 2019-06: $202.88 per share

- 2019-07: $187.39 per share

- 2019-08: $158.86 per share

- 2019-09: $158.14 per share

- 2019-10: $152.88 per share

- 2019-11: $149.23 per share

- 2019-12: $164.52 per share

- 2020-01: $166.02 per share

- 2020-02: $157.57 per share

- 2020-03: $126.28 per share

- 2020-04: $152.12 per share

- 2020-05: $170.85 per share

- 2020-06: $185.65 per share

- 2020-07: $194.00 per share

- 2020-08: $190.00 per share

- 2020-09: $179.71 per share

- 2020-10: $190.79 per share

- 2020-11: $247.00 per share

- 2020-12: $253.39 per share

- 2021-01: $262.13 per share

- 2021-02: $282.38 per share

- 2021-03: $243.77 per share

- 2021-04: $242.35 per share

- 2021-05: $242.55 per share

- 2021-06: $237.19 per share

- 2021-07: $251.74 per share

- 2021-08: $259.12 per share

- 2021-09: $237.72 per share

- 2021-10: $245.84 per share

- 2021-11: $227.85 per share

- 2021-12: $230.78 per share

- 2022-01: $209.17 per share

- 2022-02: $185.61 per share

- 2022-03: $172.81 per share

- 2022-04: $162.71 per share

- 2022-05: $156.40 per share

- 2022-06: $149.52 per share

- 2022-07: $162.21 per share

- 2022-08: $174.32 per share

- 2022-09: $144.38 per share

- 2022-10: $162.64 per share

- 2022-11: $196.79 per share

- 2022-12: $166.90 per share

- 2023-01: $196.87 per share

- 2023-02: $195.78 per share

- 2023-03: $197.95 per share

- 2023-04: $186.63 per share

- 2023-05: $189.81 per share

- 2023-06: $194.90 per share

- 2023-07: $200.38 per share

- 2023-08: $177.48 per share

- 2023-09: $160.00 per share

- 2023-10: $143.72 per share

- 2023-11: $178.79 per share

- 2023-12: $213.42 per share

- 2024-01: $189.94 per share

- 2024-02: $200.50 per share

- 2024-03: $205.25 per share

- 2024-04: $186.53 per share

- 2024-05: $181.35 per share

- 2024-06: $169.70 per share

- 2024-07: $181.57 per share

- 2024-08: $169.27 per share

- 2024-09: $168.49 per share

- 2024-10: $151.58 per share

- 2024-11: $157.70 per share

- 2024-12: $140.76 per share

- 2025-01: $141.18 per share

- 2025-02: $139.02 per share

- 2025-03: $123.61 per share

- 2025-04: $105.94 per share

- 2025-05: $108.44 per share

- 2025-06: $111.94 per share

- 2025-07: $114.42 per share

- 2025-08: $145.07 per share

- 2025-09: $131.75 per share

- 2025-10: $138.89 per share

- 2025-11: $137.85 per share

- 2025-12: $137.31 per share

- 2026-01: $153.74 per share

- 2026-02: $147.03 per share

- 2026-03: $124.23 per share

- 2026-04: $135.89 per share

- 2026-05: $143.53 per share

- 2026-06: $158.87 per share

- 2026-07: $160.52 per share

- 2026-08: $165.80 per share

- 2026-09: $157.76 per share

- 2026-10: $158.55 per share

## Annual estimated value (USD per share)

- FY2016: low $56.76 per share, central $65.34 per share, high $75.07 per share

- FY2017: low $60.91 per share, central $69.65 per share, high $80.06 per share

- FY2018: low $63.57 per share, central $72.83 per share, high $83.61 per share

- FY2019: low $75.16 per share, central $92.59 per share, high $106.97 per share

- FY2020: low $78.50 per share, central $94.87 per share, high $109.22 per share

- FY2021: low $94.51 per share, central $116.19 per share, high $134.39 per share

- FY2022: low $96.07 per share, central $108.22 per share, high $124.40 per share

- FY2023: low $106.23 per share, central $131.98 per share, high $152.67 per share

- FY2024: low $98.34 per share, central $110.73 per share, high $127.21 per share

- FY2025: low $102.45 per share, central $115.45 per share, high $132.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/81362/000162828026010694/kwr-20251231.htm); period 2025-12-31, filed 2026-02-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.