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How risky is RPM International after the new volatility hike?
 | By Ellen Johnson | Macroaxis Story |
It appears without question that RPM International will continue to recover much faster as its share price surged up 2.00% today. The company's current daily volatility is 2.05 percent, with a beta of 1.04 and an alpha of 0.18 over DOW. Whilst many millenniums are getting more into manufacturing, it makes sense to summarize RPM International. What exactly are RPM International shareholders getting in August?
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Reviewed by Gabriel Shpitalnik
RPM International has roughly 212.24 M in cash with 528.61 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.64. Macroaxis provides unbiased recommendation on RPM International that should be used to complement current analysts and expert consensus on RPM International. Our trade recommendations engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as RPM International. Your research has to be compared to or analyzed against RPM International's peers to derive any actionable benefits. When done correctly, RPM International's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in RPM International.
Investing in RPM International, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding RPM International along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of RPM International's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is RPM International's Liquidity
RPM International financial leverage refers to using borrowed capital as a funding source to finance RPM International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RPM International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to RPM International's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of RPM International's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between RPM International's total debt and its cash.
RPM International Gross Profit
RPM International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RPM International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RPM International Gross Profit growth over the last 10 years. Please check RPM International's gross profit and other fundamental indicators for more details.
RPM International Correlation with Peers
Investors in RPM can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in RPM International. Diversification will allow for the same portfolio return with reduced risk. The correlation table of RPM International and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities RPM is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of RPM for more details
Going after RPM Financials
RPM International appears to be very steady, given 1 month investment horizon. RPM International maintains Sharpe Ratio (i.e. Efficiency) of 0.14, which implies the firm had 0.14% of return per unit of volatility over the last month. Our approach towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for RPM International, which you can use to evaluate future volatility of the company. Please employ RPM International risk adjusted performance of 0.2907, and Semi Deviation of 2.23 to confirm if our risk estimates are consistent with your expectations.
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