RPM International Story

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RPM -- USA Stock  

USD 93.22  0.14  0.15%

It appears without question that RPM International may not recover as fast as we have hopped for as its price went down 4.35% today. The company current daily volatility is 1.35 percent, with a beta of 0.11 and an alpha of 0.06 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to summarize RPM International based on how it reacts to the new economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a week ago
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Will RPM International (NYSE:RPM) volatility hike before May
RPM International has roughly 272.94 M in cash with 829.26 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.1.
RPM International has performance score of 6 on a scale of 0 to 100. The company holds a Beta of 0.1084, 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, RPM International returns are expected to increase less than the market. However, during the bear market, the loss on holding RPM International will be expected to be smaller as well. Although it is extremely important to respect RPM International current trending patterns, it is better to be realistic regarding the information on 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 0.12% will be sustainable into the future. RPM International currently holds a risk of 1.35%. Please check RPM International maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to decide if RPM International will be following its historical price patterns.
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

Going after RPM International Financials

We consider RPM International very steady. RPM International maintains Sharpe Ratio (i.e. Efficiency) of 0.0892, which implies the firm had 0.0892% 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 check RPM International risk adjusted performance of 0.0521, and Semi Deviation of 1.23 to confirm if the risk estimate we provide is consistent with the expected return of 0.12%.
PPG
RPM
SHW
MON
OEC
PPG
0.8-0.14-0.290.62
PPG
RPM
0.8-0.13-0.290.4
RPM
SHW
-0.14-0.13-0.05-0.25
SHW
MON
-0.29-0.29-0.05-0.32
MON
OEC
0.620.4-0.25-0.32
OEC
PPG
RPM
SHW
MON
OEC
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

The case for RPM International pull down maybe to hold

Total Risk Alpha just dropped to -0.14, may denote upcoming price depreciation. RPM International has relatively low volatility with skewness of 0.32 and kurtosis of -0.14. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure RPM International's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact RPM International's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on RPM International Investment

While some firms under the specialty chemicals industry are still a bit expensive, RPM International may offer a potential longer-term growth to stakeholders. All things considered, as of the 7th of April 2021, our research shows that RPM International is a rather very steady investment opportunity with a low chance of financial distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our concluding 30 days 'Buy-vs-Sell' recommendation 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 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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