Strong cash conversion — free cash flow at roughly 10 times net income and a perfect Piotroski F-Score of 9/9 — and healthy price momentum mask extreme risk conditions: a put-to-call ratio of 8.00, 16% short interest, and a stock price $42 above the options market's max pain level of $105; with only 0.3% upside to the analyst consensus target and a recent pattern of earnings underdelivery, the risk profile has breached the minimum acceptable threshold and warrants an exit.
Thesis pillars
- Extreme Risk Options Short Positioning→Stable
- Target Reached No Upside Headroom→Stable
- Earnings Delivery Deteriorating→Stable
- +1 more pillar — see the Why tab for full reasoning
Quaker Houghton (KWR) Stock Analysis
Basic Materials · Specialty Chemicals
Sell if holding. Analyst target reached at $159.43 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. subsidiaries.
Quaker Houghton formulates specialty industrial process fluids — metal removal, rolling lubricants, hydraulic fluids, and surface solutions — sold to steel, aluminum, automotive, and aerospace manufacturers in over 25 countries across three segments. Non-US subsidiaries... Read more
Sell if holding. Analyst target reached at $159.43 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. subsidiaries. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 25d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-07Recent Developments — Quaker Houghton
Latest news
- NEWS Is Quaker Houghton (KWR) a Bargain After 3.6% Drop? GF Value Says Undervalued - GuruFocus — GuruFocus positive
- NEWS Quaker Chemical (KWR) Q1 2026 Preview: EPS Est. $1.62, Reports May 1 - AlphaStreet — AlphaStreet neutral
- NEWS Quaker Chemical Corp stock (US7473041019): Why Google Discover changes matter more now - AD HOC NEWS — AD HOC NEWS neutral
- NEWS Earnings Flash (KWR) Quaker Houghton Posts Q1 Adjusted EPS $1.63 per Share, vs. FactSet Est of $1.62 - marketscreener.co — marketscreener.com positive
- NEWS Quaker Chemical (KWR) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance neutral
Generated 2026-07-07T11:31:43Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicnon-U.S. subsidiaries10-K Item 1A: 'sales by our non-U.S. subsidiaries accounted for approximately 63% to 67% of our consolidated net sales'
- LOWProductmetal removal fluids19%10-K Item 1: 'Metal removal fluids ... 19.0'
- LOWProductrolling lubricants18%10-K Item 1: 'Rolling lubricants ... 18.3'
- LOWProducthydraulic fluids12%10-K Item 1: 'Hydraulic fluids ... 12.2'
- LOWProductsurface solutions11%10-K Item 1: 'Surface solutions ... 10.9'
Material Events(8-K, last 90d)
- 2026-03-12Item 5.02MEDIUMSVP/Chief Global Operations Officer Jeffrey Fleck departed March 9, 2026 via involuntary termination without cause. No successor named. No disagreement with the Company cited.SEC filing →
- 2026-05-15Item 5.02LOWBoard Chairman Michael F. Barry retired May 13, 2026 after serving since 2008. Mark A. Douglas appointed new Chairman. Board reduced from 11 to 10 directors. Lead Director role eliminated. No disagreement cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $159.43 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. subsidiaries. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $149.07. Score 5.7/10, moderate confidence.
Take-profit target: $160.20 (+0.5% upside). Prior stop was $149.07. Stop-loss: $149.07.
Concentration risk — Geographic: non-U.S. subsidiaries; Analyst target reached - limited upside remaining; Consecutive earnings misses (2).
Quaker Houghton trades at a P/E of 619.8 (forward 18.4). TrendMatrix value score: 6.9/10. Verdict: Sell.
11 analysts cover KWR with a consensus score of 4.1/5. Average price target: $171.
What does Quaker Houghton do?Quaker Houghton formulates specialty industrial process fluids — metal removal, rolling lubricants, hydraulic fluids,...
Quaker Houghton formulates specialty industrial process fluids — metal removal, rolling lubricants, hydraulic fluids, and surface solutions — sold to steel, aluminum, automotive, and aerospace manufacturers in over 25 countries across three segments. Non-US subsidiaries generated 63% to 67% of consolidated net sales over the past three years, employing approximately 4,700 people globally.