Quaker Houghton Common Stock (KWR)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. Quaker Houghton provides industrial process fluids and chemical management services, which can be sticky, but the reported record is uneven. In fiscal 2023, the year ended 2023-12-31, revenue was $2.0B, net income $112.7M, and diluted EPS $6.26. In fiscal 2024, revenue was $1.8B, net income $116.6M, and EPS $6.51. Then fiscal 2025 brought revenue of $1.9B but a net loss of $2.5M and EPS of -$0.14, including a fiscal Q2 2025 net loss of $66.6M. The latest quarters suggest a turnaround: fiscal Q1 2026 net income was $19.7M and EPS $1.13, while fiscal Q2 2026, the quarter ended 2026-06-30, had revenue of $532.5M, net income of $26.8M, EPS of $1.55, and a thin 5.04% net margin. At the 2026-10-13 close of $160.82, FairStock shows a P/E of 28.87, P/B of 2.01, EV/EBITDA of 13.98, FCF yield of 2.7%, ROE of 7.17%, and ROCE of 4.10%. Its Graham Number is $100.14, so the price carries a negative 60.60% margin of safety. Piotroski's 8/9 and PEG of 0.21 are encouraging, but the low returns on capital and Altman Z of 1.93 show a business still earning modestly for its owners. This is a Lynch turnaround—a loss in the latest year after earlier profits. The recovery is real, but the valuation already assumes much of it continues, and I would want proof that returns, not just earnings, are improving.

In plain English: Quaker Houghton makes specialty chemicals and fluids used in heavy industry and manufacturing. The company lost money in its latest full year after earlier profits, but it has been profitable again in recent quarters. At $160.82, the stock looks expensive compared with the money it earns and the value of its assets, so the price already reflects a lot of recovery.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer