As of April 4, 2026, Quaker Chemical Corp has a Discounted Cash Flow (DCF) derived fair value of $259.10 per share. With the current market price at $120.57, this represents a potential upside of 114.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $205.80 |
| DCF Fair Value (10-year) | $259.10 |
| Potential Upside (5-year) | 70.7% |
| Potential Upside (10-year) | 114.9% |
| Discount Rate (WACC) | 6.9% - 8.8% |
Revenue is projected to grow from $1889 million in 12-2025 to $2475 million by 12-2035, representing a compound annual growth rate of approximately 2.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2025 | 1889 | 3% |
| 12-2026 | 1976 | 5% |
| 12-2027 | 2065 | 5% |
| 12-2028 | 2107 | 2% |
| 12-2029 | 2149 | 2% |
| 12-2030 | 2226 | 4% |
| 12-2031 | 2271 | 2% |
| 12-2032 | 2316 | 2% |
| 12-2033 | 2362 | 2% |
| 12-2034 | 2427 | 3% |
| 12-2035 | 2475 | 2% |
Net profit margin is expected to improve from -1% in 12-2025 to 13% by 12-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2025 | (18) | -1% |
| 12-2026 | 51 | 3% |
| 12-2027 | 99 | 5% |
| 12-2028 | 145 | 7% |
| 12-2029 | 191 | 9% |
| 12-2030 | 240 | 11% |
| 12-2031 | 253 | 11% |
| 12-2032 | 267 | 12% |
| 12-2033 | 280 | 12% |
| 12-2034 | 296 | 12% |
| 12-2035 | 311 | 13% |
with a 5-year average of $37 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2026 | 41 |
| 12-2027 | 43 |
| 12-2028 | 44 |
| 12-2029 | 44 |
| 12-2030 | 42 |
| 12-2031 | 43 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 81 |
| Days Inventory | 74 |
| Days Payables | 59 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 163 | 19 | 39 | 3 | 102 |
| 2027 | 234 | 37 | 41 | 16 | 140 |
| 2028 | 299 | 54 | 42 | 15 | 188 |
| 2029 | 363 | 71 | 43 | 4 | 245 |
| 2030 | 430 | 89 | 44 | 16 | 280 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 205.80 | 70.7% |
| 10-Year DCF (Growth) | 259.10 | 114.9% |
| 5-Year DCF (EBITDA) | 143.36 | 18.9% |
| 10-Year DCF (EBITDA) | 193.55 | 60.5% |
Is Quaker Chemical Corp (KWR) a buy or a sell? Quaker Chemical Corp is definitely a buy. Based on our DCF analysis, Quaker Chemical Corp (KWR) appears to be significantly undervalued with upside potential of 114.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $120.57.