By analyzing existing forward indicators between RPM International and PolyOne, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in PolyOne with a short position in RPM International. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RPM International has an asset utilization ratio of 115.64 percent. This denotes that the company is making $1.16 for each dollar of assets. An increasing asset utilization means that RPM International is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as RPM or Ecolab is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding RPM International dividends
A dividend is the distribution of a portion of RPM International earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. RPM International dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. RPM one year expected dividend income is about USD1.27 per share.
At this time, RPM International's
Dividends Paid is very stable compared to the past year. As of the 25th of April 2024,
Dividend Yield is likely to grow to 0.03, though
Dividend Paid And Capex Coverage Ratio is likely to grow to
(15.56).
Investing in dividend-paying stocks, such as RPM International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in RPM International must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for RPM International. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
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.
Correlation Between RPM and Ecolab Inc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding RPM International together with similar or unrelated positions with a negative correlation. For example, you can also add Ecolab to your portfolio. If Ecolab is not perfectly correlated to RPM International it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When RPM International, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both RPM International and Ecolab in your portfolio? Please note if you are using this as a pair-trade strategy between RPM International and Ecolab, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between RPM and ECL for more information.
Going after RPM Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check RPM International revenue. Based on the latest financial disclosure, RPM International reported 5.51
B of revenue. This is 29.89% lower than that of the Basic Materials sector and 23.82% higher than that of the
Specialty Chemicals industry. The revenue for all United States stocks is 41.6% higher than that of RPM International. As for PolyOne we see revenue of 2.82
B, which is 36.63% lower than that of the Specialty Chemicals
| RPM International | 5.51 Billion |
| Sector | 4.45 Billion |
| PolyOne | 2.82 Billion |
RPM International is estimated to stay under $86 in November
New coefficient of variation is at 730.33. As of the 6th of October, RPM International holds the
semi deviation of 1.27, and Risk Adjusted Performance of 0.1373. 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 84.32 per share. Given that RPM International has
jensen alpha of 0.1481, 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 other companies within the specialty chemicals industry are still a little expensive, even after the recent corrections, RPM International may offer a potential longer-term growth to stakeholders. The bottom line, as of the 6th of October 2020, our analysis shows that RPM International barely shadows the market. The company is
overvalued and projects
below average chance of distress for the next 2 years. Our current 30 days buy-or-sell advice on the company is
Strong Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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
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