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Oil-Dri
Industry & manufacturing / Absorbent and cat litter
At a Glance | Core Facts | Company Due Diligence | Industry Due Diligence | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web1. Fluctuations in Oil Prices: Oil-Dri is highly dependent on the fluctuations in the global oil prices, since they purchase their core raw material, clay, at prices based on the price of crude oil. A decline in the oil prices could have a negative effect on the company’s financial performance.
2. Cost of Raw Materials: Clay is a major raw material for Oil-Dri. The cost of the clay is directly proportional to the cost of crude oil, which is a volatile commodity. Any fluctuation in the crude oil market can adversely affect the company’s profitability.
3. Regulatory & Environmental Risks: Oil-Dri is at risk of government regulation from agencies such as the Environmental Protection Agency and the Occupational Safety and Health Administration as their products may contain hazardous materials. They are also at risk of facing fines for not complying with laws regarding hazardous material disposal.
4. Competitive Pressure: Oil-Dri is facing increasing competition from other companies offering similar products. This could reduce their market share and have a negative effect on their performance.
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