By examining key indicators for RPM International and Sociedad, you can see how market fluctuations impact their stock prices. This comparison helps determine if combining these companies could reduce overall portfolio risk. You might also consider pair trading—going long on Sociedad while shorting RPM International—to capitalize on their relative movements. For more details, check out our
pair correlation tool.
Looking at asset efficiency, RPM International's asset utilization stands at 94.81%. This means the company earns about $0.95 for every dollar of assets, indicating strong operational efficiency. An upward trend in this ratio suggests RPM is getting better at turning assets into revenue.
Key Takeaways
Given RPM International's current price-to-book ratio of 4.35X and a solid net income of
690.3M, investors might consider a cautious buy, especially if the stock approaches its 52-week low of
93.92. However, with a profit margin of 0.0916 and a relatively high enterprise value revenue multiple of 2.13, it’s wise to watch for further momentum before committing heavily.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in RPM International. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on RPM International, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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.
RPM International Gross Profit
RPM International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RPM International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RPM International Gross Profit growth over the last 10 years. Please check RPM International's
gross profit and other
fundamental indicators for more details.
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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at RPM International revenue. Based on the latest financial disclosure, RPM International reported 7.37
B of revenue.
This is 6.19% lower than that of the Chemicals sector and 65.68% higher than that of the
Materials industry. The revenue for all United States stocks is 21.86% higher than that of the firm. As for Sociedad Quimica we see revenue of 4.53
B, which is about the same for the Materials average (which is currently at 4.45
B)
| RPM | 7.37 Billion |
| Sector | 4.45 Billion |
| Sociedad | 4.53 Billion |
A rising tide lifts all boats, and RPM International (NYSE:RPM) may be poised for a potential surge following Sociedad Química’s recent momentum. With a current typical price of around 106.57 and a 52-week high of 128.50, RPM’s valuation appears attractive given its solid revenue of approximately 7.4 billion dollars and a net asset base of 7.78 billion dollars. Despite a modest operating margin of 0.15%, the company maintains a healthy cash flow from operations at 768 million dollars and a low short interest of just 1.9 million shares, indicating limited downside risk. With a potential upside of 2.23 and a current market risk-adjusted performance of -0.18, RPM could follow industry peers upward if broader chemical sector trends remain positive. However, investors should watch for its debt levels, totaling nearly 3 billion dollars, which could temper enthusiasm if market conditions turn less favorable..
Possible February come-back of RPM?
With the value at risk dropping to -2.25 today, RPM International appears to be showing signs of resilience, fueling hopes of a rebound in February. This decline suggests reduced downside risk, possibly reflecting growing investor confidence or stabilizing fundamentals. If this momentum continues, it could pave the way for a stronger move upward in the coming weeks, making RPM worth watching for potential gains. The stock’s low volatility, with a skewness of 0.22 and kurtosis of 0.58, indicates relatively stable price swings. Understanding these volatility patterns helps investors gauge risk during different market conditions.
During downturns, increased volatility can pressure RPM’s stock price and prompt portfolio adjustments, as investors often rebalance by shifting into other assets when prices dip.Looking ahead, RPM International shows promising signs that could keep its momentum going. With a strong consensus among analysts leaning toward a buy, and seven out of eight recommending strong buys, there's a sense of confidence in its growth potential. The estimated target price of around
130.71 suggests some upside from current levels, especially considering the valuation market value of approximately
107. While there’s always some risk—highlighted by a possible downside of about
102.53—the overall outlook remains optimistic. If RPM can maintain its trajectory, investors might find themselves riding a wave that continues to go "nuts" in the near future..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of RPM International. Please refer to our
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