ScoreWhy is Quaker Houghton ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.80%
2
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
3
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 -7.36%, its profits have fallen by -12.7%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.36% 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 ReportHow 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
34.53%
-0.43
42.57%
S&P 500
21.51%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.90%
EBIT Growth (5y)
5.93%
EBIT to Interest (avg)
5.07
Debt to EBITDA (avg)
2.66
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.86
Tax Ratio
35.01%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
8.80%
ROE (avg)
8.58%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.58
EV to EBIT
16.20
EV to EBITDA
10.60
EV to Capital Employed
1.38
EV to Sales
1.52
PEG Ratio
NA
Dividend Yield
1.64%
ROCE (Latest)
8.52%
ROE (Latest)
8.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 4.38
INTEREST COVERAGE RATIO(Q)
Highest at 673.44
RAW MATERIAL COST(Y)
Fallen by -0.99% (YoY
NET SALES(Q)
Highest at USD 532.55 MM
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 131.18 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.67 times
Here's what is working for Quaker Houghton
Interest Coverage Ratio
Highest at 673.44
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 4.38 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 532.55 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by -0.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Quaker Houghton
Operating Cash Flow
Lowest at USD 131.18 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Lowest at 4.67 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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