Quaker Chemical (KWR) has disclosed a new risk, in the Supply Chain category.
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Quaker Chemical faces significant exposure to volatility in a broad range of commodity-based raw materials, many of which are linked directly or indirectly to crude oil prices and biofuel-related demand. As these inputs can experience sharp and unpredictable cost swings, the company’s procurement flexibility and pricing discipline are continually tested.
Because it often seeks to pass through higher input costs to customers, Quaker Chemical risks either margin compression if it cannot fully adjust prices or volume losses if customers resist increases. Persistent inability to offset raw material inflation or retain price-sensitive customers could materially weaken its liquidity, financial position, and operating results.
Overall, Wall Street has a Moderate Buy consensus rating on KWR stock based on 1 Buy and 1 Hold.
To learn more about Quaker Chemical’s risk factors, click here.