Last Updated: 10 Nov 2024
Executive Summary
RPM International Inc. (RPM) is a leading manufacturer and seller of specialty chemicals for the global consumer, specialty, and industrial markets. The company has a strong financial position with a market capitalization of $17.3 billion, EBITDA of $1.07 billion, and a trailing PE ratio of 28.25. RPM's financial performance has been solid, with quarterly earnings growth of 13.2% and revenue growth of -2.1% year-over-year. The company's strong fundamentals and positive analyst outlook suggest that it is a good long-term investment opportunity.
Company Overview
RPM International Inc. is headquartered in Medina, Ohio, and has a global presence. The company's products include coatings, sealants, adhesives, and other specialty chemicals. RPM serves a diverse range of end markets, including construction, industrial, and consumer. The company has a long history of innovation and has a strong portfolio of brands, including Rust-Oleum, Zinsser, and DAP.
Fundamental Analysis
RPM International Inc.'s financial performance has been solid in recent years. The company's revenue has grown at a CAGR of 4.5% over the past five years, and its EBITDA has grown at a CAGR of 6.3% over the same period. RPM's profit margins have also been stable, with a gross profit margin of 33.4% and an operating margin of 15.8% in the latest twelve months.
The company's balance sheet is also strong, with a debt-to-equity ratio of 0.45 and a current ratio of 1.39. RPM has a strong cash position, with $474 million in cash and cash equivalents as of May 31, 2023.
Technical Analysis
RPM's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. The stock's relative strength index (RSI) is also above 50, indicating that the stock is not overbought.
Short Term Outlook
RPM's stock price is expected to continue to trend higher in the short term. The company's strong fundamentals and positive analyst outlook suggest that the stock is a good buy. The stock's technical indicators also support a bullish outlook.
Long Term Outlook
RPM's long-term outlook is also positive. The company's strong market position, diverse product portfolio, and global reach give it a competitive advantage. The company's commitment to innovation and its strong financial position also position it well for long-term growth.
Analyst Recommendations
Analysts are bullish on RPM's stock. The consensus analyst rating is "buy", with a price target of $133.46. One analyst has a "strong buy" rating on the stock, three analysts have a "buy" rating, and no analysts have a "sell" rating.
