RPM International Story

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RPM -- USA Stock  

USD 81.12  1.41  1.77%

As many baby boomers are still indifferent towards basic materials space, it makes sense to summarize RPM International. We will evaluate why recent RPM International price moves suggest a bounce in August. What is the stock valuation so far in 2020? We are going to cover RPM International perspective on valuation to give investors a better transparency on taking a position in it.
Published over two months ago
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The impact of new bullish trends on RPM International (NYSE:RPM)
The company has 2.86 B in debt with debt to equity (D/E) ratio of 2.11, meaning that RPM International heavily relies on borrowing funds for operations. RPM International has 2.86 B in debt with debt to equity (D/E) ratio of 2.11, meaning that the entity heavily relies on borrowing funds for operations. The entity has a current ratio of 2.36, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. On a scale of 0 to 100, RPM International holds a performance score of 9. The company holds a Beta of -0.1984, which implies not very significant fluctuations relative to the market. Let's try to break down what RPM International's beta means in this case. As returns on the market increase, returns on owning RPM International are expected to decrease at a much lower rate. During the bear market, RPM International is likely to outperform the market. Although it is vital to follow RPM International current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The approach towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting RPM International technical indicators, you can now evaluate if the expected return of 0.29% will be sustainable into the future. Please employ RPM International standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to make a quick decision on whether RPM International historical price patterns will revert.
We determine the current worth of RPM International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of RPM International based exclusively on its fundamental and basic technical indicators. By analyzing RPM International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of RPM International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of RPM International. We calculate exposure to RPM International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to RPM International's related companies.

RPM International Investment Alerts

RPM International investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring RPM International performance across your portfolios.Please check all investment alerts for RPM International

RPM International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare RPM International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across RPM International competition to find correlations between indicators driving the intrinsic value of RPM International.

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

Breaking down the case for RPM International

The latest bullish price patterns experienced by current RPM International shareholders created some momentum for stakeholders as it was traded today as low as 78.13 and as high as 81.25 per share. The company executives have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in June. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.06. The current volatility is consistent with the ongoing market swings in June 2020 as well as with RPM International unsystematic, company-specific events.
 2017 2018 2019 (projected)
Long Term Debt to Equity1.331.41.26
Interest Coverage5.034.575.26

Margins Breakdown

RPM International profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or RPM International itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of RPM International profit margins.
4.51
Profit Margin
10.39
Operating Margin
13.13
EBITDA Margin
Operating Margin10.39
EBITDA Margin13.13
Gross Margin36.93
Profit Margin4.51


RPM International Revenue Per Employee is increasing over the last 8 years. The new value of RPM International Revenue Per Employee is 441,533. Further, RPM International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. RPM International Revenue Per Employee is increasing over the last 8 years. Further, RPM International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The new value of RPM International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 492,850,600.

Will RPM International pull back in August 2020?

New downside variance is at 6.25. As of the 26th of July, RPM International holds the semi deviation of 2.23, and Risk Adjusted Performance of 0.2891. Concerning fundamental indicators, the technical analysis model allows you to check practical technical drivers of RPM International, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for RPM International, which can be compared to its competitors. Please check RPM International standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if RPM International is priced more or less accurately, providing market reflects its current price of 79.69 per share. Given that RPM International has jensen alpha of 0.3737, we recommend you to check out RPM International's recent market performance to make sure the company can sustain itself at some point in the future.

Our Conclusion on RPM International

While some other firms under the specialty chemicals industry are still a bit expensive, RPM International may offer a potential longer-term growth to stakeholders. To conclude, as of the 26th of July 2020, our analysis shows that RPM International moves indifferently to market moves. The company is overvalued and projects low odds of financial turmoil for the next 2 years. Our up-to-date 30 days buy-hold-sell recommendation on the company is Cautious Hold.

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 Raphi Shpitalnik 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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