In the world of investing, timing can be everything. As we approach November, many investors are scrutinizing RPM International's stock to determine if it remains a wise choice. The company, listed on the NYSE and categorized under Basic Materials, has shown some intriguing movements recently. With a Valuation Real Value of $103.84 and a Day Typical Price of $120.36, there's a noticeable gap that could signal potential opportunities or risks. The Analyst Overall Consensus still leans towards a Buy, but the Price Action Indicator at -0.85 and a Daily Balance Of Power at -0.43 suggest a more cautious approach might be warranted. Understanding these dynamics is crucial for making informed decisions about whether RPM International is still a buy this month. Considering a 60-day investment horizon, RPM International is expected to deliver returns that are 2.02 times higher than the market average. However, it is also 2.02 times more volatile than its market benchmark. The stock trades at about 0.13 of its potential returns per unit of risk, compared to the Dow Jones Industrial's 0.14 per unit of risk. While some risk-tolerant investors might overlook current market volatility, it's important to consider the risks associated with investing in RPM International. This year could be different for RPM shareholders. Despite its low volatility, we believe RPM International is currently overvalued, with an estimated real value close to $103.84 per share.
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.
The recent bullish price patterns experienced by current RPM International shareholders created some momentum for investors as it was traded today as low as
119.43 and as high as
121.55 per share. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in
September. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.68.
The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2021 | 2022 | 2023 | 2024 (projected) |
Short Long Term Debt Total | 3.0B | 3.0B | 2.5B | 2.6B | Total Assets | 6.7B | 6.8B | 6.6B | 6.9B |
In the world of investing, "volatility is the price you pay for performance." RPM International, a player in the Specialty Chemicals industry, demonstrates this with a Beta of 0.99, indicating its stock moves almost in tandem with the market. Despite a modest Five Year Return of 2.00%, the company's strong Current Ratio of 1.99X suggests solid liquidity. However, with an Operating Margin of just 0.14%, potential investors should weigh the stability of its earnings against market fluctuations before making a decision this November..
RPM International has 62 percent chance to decline under $118 in the coming weeks
RPM International's stock has been quite volatile recently, with fluctuations exceeding 2.78. This increased instability indicates a 62% chance that the stock could fall below $118 soon. Investors should be cautious and consider this potential downside when making trading decisions. Despite this, RPM International generally has low volatility, with a skewness of 0.93 and kurtosis of 2.68. Understanding market volatility trends can help investors time their trades better.
Using volatility indicators allows traders to assess RPM International's stock risk against market movements during both up and down markets. Bear markets, in particular, can significantly impact RPM International's stock price, causing stress for investors and often leading them to rebalance their portfolios by purchasing different financial instruments as prices decline.As we look ahead to November, RPM International presents a compelling case for investors. With an analyst consensus rating of "Buy" and a target price estimated at $108, the stock appears to have room for growth. The company's fiscal year ends in May, giving it ample time to capitalize on market opportunities and improve its financial performance. Notably, the valuation market value stands at a robust
120.09, suggesting that the stock is currently trading at a premium. For those considering adding RPM International to their portfolio, the potential upside price of
119.1 offers an attractive incentive..
Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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