Quaker Houghton (KWR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ChampionX Corp.

Albemarle Corp.

NewMarket Corp.

Celanese Corp.

Quaker Houghton

Cabot Corp.

The Chemours Co.

Avantor, Inc.

LyondellBasell Industries NV

Westlake Corp.

Livent Corp.

Why is Quaker Houghton ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.80%

Flat results in Jun 25

NET PROFIT(HY) At USD 52.63 MM has Grown at -26.95%
ROCE(HY) Lowest at -0.52%
INTEREST COVERAGE RATIO(Q) Lowest at 493.38

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.18%, its profits have fallen by -12.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.18% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Quaker Houghton should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Quaker Houghton for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Quaker Houghton

-14.03%

-0.52

42.32%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.82%

EBIT Growth (5y)

10.49%

EBIT to Interest (avg)

5.07

Debt to EBITDA (avg)

2.66

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.87

Tax Ratio

35.01%

Dividend Payout Ratio

28.89%

Pledged Shares

Institutional Holding

91.61%

ROCE (avg)

8.80%

ROE (avg)

8.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.40

EV to EBIT

13.44

EV to EBITDA

9.24

EV to Capital Employed

1.28

EV to Sales

1.38

PEG Ratio

Dividend Yield

1.77%

ROCE (Latest)

9.55%

ROE (Latest)

7.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.26

NET SALES(Q)

Highest at USD 483.4 MM

-16What is not working for the Company

NET PROFIT(HY)

At USD 52.63 MM has Grown at -26.95%

ROCE(HY)

Lowest at -0.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 493.38

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 7.5% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 57.44 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.26 times

INTEREST(Q)

Highest at USD 13.99 MM

EPS(Q)

Lowest at USD -3.78

Here's what is working for Quaker Houghton

Dividend per share

Highest at USD 4.26 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 483.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Depreciation

Highest at USD 23.92 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Quaker Houghton

Interest

At USD 13.99 MM has Grown at 38.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 493.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 52.63 MM has Grown at -26.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Interest

Highest at USD 13.99 MM

in the last five periods and Increased by 38.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD -3.78

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 57.44 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 7.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales