RPM International Stock Analysis, Valuation (NYSE:RPM)

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$48.84 $0.49 (1.01%) RPM stock closing price Apr 25, 2018 (Closing)
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RPM International
Updated on : Apr 25, 2018
previous close
RPM 48.8 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Paints and Allied products
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
5.6%
Operating Profit
Operating Margin:
10.9%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.18B
Debt/Equity Ratio:
 1.34
Compared to the industry
Cash Flow
Operating cash flow:
$25.6M
Net Income:
$40.2M
Dividend Yield
RPM dividend yield:
2.54%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RPM PS :
1.2
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.9%
Return on Equity:
25.2%
Free Cash Flow Margin:
-0.2%
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RPM International Stock Analysis

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View the RPM International stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for RPM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

RPM International Inc. Stock Rating 2.9/5

Amigobulls RPM stock analysis uses latest quarter 2018 Q3 financial data like RPM International revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for RPM International valuation analysis. Our RPM International stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy RPM stock?

  • The TTM operating margin was good at 10.9% for RPM International.
  • Net margins stood at a healthy 7.2% (average) for RPM International in the Trailing Twelve Months.
  • The price to earnings multiple of 17.5 is attractive when compared with the industry average PE ratio of 20.5.
  • RPM International has an attractive ROIC (Return on Invested Capital) of 11.9%
  • The LTM ROE of 25.2% for RPM International is attractive.

Should you sell RPM stock?

  • Long term revenue growth of 5.6% over the past 5 years has been disappointing.
  • RPM International is debt laden and has a high debt/equity ratio of  1.34.
  • Cash flow from operations is low at 0.6 times the net income.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -0.2%.

Comments on this video and RPM International stock

Amigobulls RPM International stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, RPM International revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of RPM technical analysis to check whether the fundamental story is reflected in the market sentiment.