Home Sectors Basic Materials Long or Short: RPM International (NYSE: RPM)

Long or Short: RPM International (NYSE: RPM)


RPM International is part of the chemicals industry and trades as part of the basic materials sector. RPM International Inc manufactures, markets, and sells various specialty chemical product lines, including high-quality specialty paints, protective coatings, roofing systems, sealants and adhesives.

Previous Intraday Trading Performance:

The RPM stock showed a previous change of 3.40% with an open at 55.25 and a close of 56.29. It reached an intraday high of 56.37 and a low of 55.03.

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The stock has a market cap of $7.4b with 131.1m shares outstanding, of which the float is 128.3m shares. Trading volume reached 942,549 shares compared to its average volume of 462,715 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, RPM International shares returned 4.28% and in the past 30 trading days it returned -8.37%. Over three months, it changed -3.09%. In one year it has changed 15.53% and within that year its 52-week high was 68.13 and its 52-week low was 49.02. RPM stock is 14.83% above its 52 Week Low.

Our calculations show a 200 day moving average of 59.59 and a 50 day moving average of 58.39. Currently RPM stock is trading -5.54% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 2.49 that ended on 31st of May 2018, which according to the previous close, that is a PE of 22.61. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.86. The TTM EPS is 2.72, which comes to a TTM PE of 20.69. Historically, the PE high was 62.30 and the PE low was 17.60. If the stock reached its PE low, that would represent a price of 47.88, which is a decrease of -14.93%.

Below was the last reported quarterly diluted earnings per share:

Feb19 (Reported on 04/04/2019): 0.11
Nov18 (Reported on 01/04/2019): 0.37
Aug18 (Reported on 10/03/2018): 0.52
May18 (Reported on 07/19/2018): 0.63
Feb18 (Reported on 04/05/2018): 0.30

The dividend per share is currently 1.40, which is a dividend yield of 2.49%. Also, the payout ratio is 51.47%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 81.11, which means it is possibly undervalued and has a margin of safety of 30.60%.

Indicators to Watch:

Short-interest was 3,272,705, which was 2.50% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.49. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.23.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 14.67%, return on assets is 4.34%, profit margin is 3.38%, price-to-sales is 1.80 and price-to-book is 4.96.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 1  :Past Performance Score
 2  :Financial Strength Score
 4  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.