Quaker Houghton — Earnings Quality Grade F
KWR · Basic Materials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 81 days, change +1 days YoY
AR growth 4.3% vs revenue growth 2.7%
Revenue 2.7%, CFFO -33.3%. Cash follows revenue
Expense Quality
Inventory 16.8% vs COGS 4.8%. Normal
CapEx growth 33.6% is >2x revenue growth 2.7%
SG&A/Gross Profit = 74.0%, exceeds 70%
Gross margin 36.0%, change -1.3pp. Stable
Cash Flow Quality
CFFO/NI = -54.84. Below 1.0
FCF $0.1B, FCF/NI = -32.39
Accruals ratio = -5.0%. Low accruals
Cash $0.2B covers only 20% of debt $0.9B
Balance Sheet Health
Goodwill+Intangibles $1.4B = 100% of equity. Over 50%
Debt/EBITDA = 6.3x (>4x). Financial stress
Other assets grew 23.5% vs revenue 2.7%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.68 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25