RPM International Story

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RPM -- USA Stock  

USD 81.12  1.41  1.77%

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?
Published over two months ago
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How risky is RPM International after the new volatility hike?
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.
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.

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. Please check the breakdown between RPM International's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for RPM International, but it might be worth checking our own buy vs. sell analysis

RPM International Correlation with Peers

Investors in RPM International 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 International 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 International for more details

Breaking down the case for RPM International

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.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will price continue to hike in August 2020?

The market risk adjusted performance is down to 0.34 as of today. RPM International currently demonstrates below-verage downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.18. However, we do advice investors to further question RPM International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on RPM International

While few other entities under the specialty chemicals industry are still a bit expensive, RPM International may offer a potential longer-term growth to stakeholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your RPM International holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to RPM International.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of RPM International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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