Quaker Houghton

KWR

Chemicals - Specialty · Basic Materials

Price

$150.61

-4.15 (-2.68%)

Market Cap

$2.62B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−2.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 17.9M (2021) → 17.5M (2025)

Quaker Houghton (ticker: KWR) makes specialty fluids and chemicals used in industrial manufacturing. Its products include metalworking fluids, lubricants, and surface treatments that help factories shape, cut, and protect metal parts. The main customers are steel mills, automakers, aerospace manufacturers, and other heavy industries that need these fluids to keep their production lines running smoothly.

The company earns revenue by selling its chemical products directly to industrial customers, often under long-term supply relationships that create steady repeat business. Quaker Houghton operates globally, with a significant presence in North America, Europe, and Asia, and it is one of the largest specialty process fluids companies in the world following its 2019 merger with Houghton International. Its close technical partnerships with customers make switching suppliers difficult, which provides some competitive protection. The key risk is that demand for its products is tied closely to industrial output, meaning a slowdown in auto production or steel manufacturing can quickly pressure sales and margins.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+54.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

22.1%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$170M cash & investments at current burn rate

Growth context

Quaker Houghton is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

36.8%

Modest — 36.8% gross margin

Operating Margin

8.5%

Modest — 8.5% operating margin

ROCE

1.8%

Weak — 1.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.3%

Slow sales growth (6.3% YoY)

EPS YoY

-94.5%

Earnings shrinking (-94.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

3364%

Turns 3364% of profit into real cash

FCF Margin

6.2%

Modest free cash flow (6.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.64

Moderate — manageable debt (0.64)

Interest Cover

1.67x

Dangerous — barely covers interest (1.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/A

Data not available

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

1.27%

Small dividend — 1.27% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+4.7%

Dividend growing modestly (4.7% YoY)

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