By analyzing existing basic indicators between RPM International and Verizon, 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 Verizon 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 135.78 percent. This denotes that the company is making $1.36 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 18th 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
Lets now check RPM International revenue. Based on the latest financial disclosure, RPM International reported 6.47
B of revenue. This is 17.67% lower than that of the Basic Materials sector and 45.39% higher than that of the
Specialty Chemicals industry. The revenue for all United States stocks is 31.42% higher than that of RPM International. As for Verizon Communications we see revenue of 134.3
B, which is much higher than that of the Specialty Chemicals
| RPM | 6.47 Billion | 4.46 |
| Sector | 4.45 Billion | 3.06 |
| VZ | 134.3 Billion | 92.48 |
RPM International has a small chance to finish above $88 in 2 months
RPM International treynor ratio is up to -0.01. RPM International has relatively low volatility with skewness of 0.01 and kurtosis of 0.09. 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.
RPM International Implied Volatility
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. All things considered, as of the 24th of July 2022, we see that RPM International almost mirrors the market. The company is
undervalued with
below average chance of bankruptcy within the next 24 months. Our primary 90 days buy-or-sell advice on the company is
Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of RPM International. Please refer to our
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