Why Quaker Chemical Is On Investors’ Radar Today

Quaker Chemical (KWR) has drawn fresh attention after a recent share move, with the stock up about 13% over the past month and roughly 21% in the past 3 months.

The recent 12.97% 1 month share price return and 21.04% 3 month share price return suggest momentum has picked up again, even though the 5 year total shareholder return of a 39.05% loss shows a much tougher longer term journey.

If Quaker Chemical’s move has you thinking about where else growth stories could emerge, it might be worth scanning fast growing stocks with high insider ownership as a way to spot other under the radar candidates.

With Quaker Chemical trading at $157.98, an analyst price target of $166 and an indicated intrinsic value gap of about 48%, you have to ask: is this a genuine mispricing, or is the market already baking in future growth?

Most Popular Narrative: 4.8% Undervalued

The widely followed narrative pegs Quaker Chemical’s fair value at $166 per share, slightly above the last close at $157.98. It builds a detailed case around medium single digit growth and higher future profitability.

The analysts have a consensus price target of $155.4 for Quaker Chemical based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $167.0, and the most bearish reporting a price target of just $135.0.

Want to see what justifies a higher fair value than today’s price? The narrative leans heavily on future margin expansion, rapid earnings growth and a lower future P/E than many peers. Curious which specific revenue path and profit assumptions tie all of that together?

Result: Fair Value of $166 (UNDERVALUED)

However, the story could shift quickly if margin pressure from raw material costs persists or if higher leverage and interest expenses weigh more heavily on cash flow.

Build Your Own Quaker Chemical Narrative

If this storyline does not quite fit your view, or you would rather test the numbers yourself, you can build a custom Quaker Chemical thesis in just a few minutes by starting with Do it your way.

A great starting point for your Quaker Chemical research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

If Quaker Chemical has sparked your interest, do not stop here. The screener can help you quickly spot fresh ideas you might otherwise overlook.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.