RPM International Story

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RPM -- USA Stock  

USD 86.72  0.53  0.61%

It appears without question that RPM International may not recover as fast as we have hopped for as its price went down 2.11% today. The company's current daily volatility is 1.29 percent, with a beta of 0.13 and an alpha of 0.15 over DOW. As many millenniums are trying to avoid the new volatility, we are going to summarize RPM International a little further to understand its historical price patterns. We will analyze why it could be a much better year for RPM International shareholders.
Published over three months ago
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Should you take over RPM International after the new volatility hike?
RPM International has roughly 241.02 M in cash with 549.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.86. Macroaxis provides advice on RPM International to complement and cross-verify current analyst consensus on RPM International. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of RPM International's stock 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. Please use the tools below to analyze the current value of RPM International in the context of predictive analytics.
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 towards taking a position in RPM International.

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 0.15, which implies the firm had 0.15% 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-one technical indicators for RPM International, which you can use to evaluate future volatility of the company. Please employ RPM International semi deviation of 1.27, and Risk Adjusted Performance of 0.1373 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another setback for RPM International stakeholders

Risk adjusted performance is down to 0.14. It may denote a possible volatility pull down. RPM International has relatively low volatility with skewness of -0.85 and kurtosis of 1.25. However, we advise all investors to independently investigate RPM International to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on RPM International

While other companies in the specialty chemicals industry are either recovering or due for a correction, RPM International may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 6th of October 2020, we believe that at this point, RPM International is very steady with below average chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. Our overall 30 days buy vs. sell advice on the company is Strong 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 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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