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KWRQuaker HoughtonBuy Wait5.9·$156.92
Buy WaitModerate Confidence
Investment thesis

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↓Deteriorating
  • Target Reached No Upside Headroom→Stable
  • Earnings Delivery Deteriorating↑Improving
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026, based on the 10-K filed Feb 23, 2026

Full reasoning →

Open full analysis

Quaker Houghton (KWR) Stock Analysis

Range Bound setup · Sector Rotation edge

Buy WaitVALUE-TRAP 1/5GrowthQualityShortModerate Confidence

Basic Materials · Specialty Chemicals

Earnings today — results expected after close (2026-10-29). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $153.72. At $156.92 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $153.72 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. subsidiaries; Thin upside margin: 7.1%.

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

$156.92+7.1% A.UpsideScore 5.9/10#10 of 43 Specialty Chemicals
QualityF-score9 / 9FCF yield4.81%
IncomeYield1.35%(5y avg 1.08%)Payout35.81%sustainable
Entry $153.72(support + ATR (held))Stop $147.29Target $168.03(analyst − 13%)A.R:R 1.4:1
Analyst consensus$193.14+23.1%7 analysts
$168.03our TP
$156.92price
$193.14mean
$202

Wait for pullback to $153.72. At $156.92 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $153.72 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. subsidiaries; Thin upside margin: 7.1%. Chart setup: RSI 48 mid-range, Bollinger mid-band. Earnings today. Wait until post-earnings. Score 5.9/10, moderate confidence.

Passes 4/8 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Oct 29, 2026Earnings today — results expected after close· next earnings call

Thesis

Rewards
Attractive valuation
Strong growth profile
Risks
Concentration risk — Geographic: non-U.S. subsidiaries
Thin upside margin: 7.1%
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4)

Key Metrics

P/E (TTM)28.0
P/E (Fwd)16.4
Mkt Cap$2.7B
EV/EBITDA12.1
Profit Mgn4.9%
ROE7.2%
Rev Growth10.2%
Beta1.40
Dividend1.35%
Rating analysts11

Quality Signals

Piotroski F9/9MoatNarrow

Options Flow

P/C0.77neutral
IV70%elevated

Concentration Risks(10-K Item 1A)

  • HIGHGeographicnon-U.S. subsidiaries
    10-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 5.02MEDIUM
    SVP/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 5.02LOW
    Board 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. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Obv
1.0
Macd
3.0
Ma Position
4.0
Volume
4.8
Rsi
5.5
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.7<4.5A.R:R 1.4 < 1.5@spotEARNINGS PROXIMITY 0d<=7dExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
48 · Neutral
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $151.85Resistance $163.14

Price Targets

$147
$154
$168
A.Upside+7.1%
A.R:R1.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Earnings today - binary event risk
! momentum at 3.7 (below the engine's 4.5 threshold)
! asymmetry at 1.4 (below the engine's 1.5 threshold)@spot

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-10-29 (Earnings today — results expected after close)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KWR stock a buy right now?

Wait for pullback to $153.72. At $156.92 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $153.72 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. subsidiaries; Thin upside margin: 7.1%. Chart setup: RSI 48 mid-range, Bollinger mid-band. Earnings today. Wait until post-earnings. Target $168.03 (+7.1%), stop $147.29 (−6.5%), A.R:R 1.4:1. Score 5.9/10, moderate confidence.

What is the KWR stock price target?

Take-profit target: $168.03 (+7.1% upside). Target $168.03 (+7.1%), stop $147.29 (−6.5%), A.R:R 1.4:1. Stop-loss: $147.29.

What are the risks of investing in KWR?

Concentration risk — Geographic: non-U.S. subsidiaries; Thin upside margin: 7.1%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4).

Is KWR overvalued or undervalued?

Quaker Houghton trades at a P/E of 28.0 (forward 16.4). TrendMatrix value score: 7.2/10. Verdict: Buy (Wait for Entry).

What do analysts say about KWR?

11 analysts cover KWR with a consensus score of 4.1/5. Average price target: $193.

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.

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