RPM International Inc (RPM, Financial), a prominent player in the Chemicals industry, has been making waves in the stock market. As of July 26, 2023, the company's stock price stands at $102.91, with a market cap of $13.27 billion. The stock has seen a significant gain of 10.02% today and an impressive 24.13% over the past four weeks. This article aims to provide a comprehensive analysis of RPM's GF Score and other key financial metrics to help investors understand its potential for outperformance.
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation and has been found to be closely correlated with the long-term performances of stocks. RPM International Inc boasts a GF Score of 89/100, indicating good outperformance potential. This high score suggests that RPM is likely to generate higher returns than stocks with lower GF Scores.
Financial Strength Rank Analysis
The Financial Strength Rank measures a company's financial situation based on factors such as its debt burden, debt to revenue ratio, and Altman Z-Score. RPM International Inc has a Financial Strength Rank of 5/10. Its interest coverage is 7.21, indicating a manageable debt burden. The company's debt to revenue ratio is 0.43, and its Altman Z score is 3.91, both of which further attest to its financial strength.
Profitability Rank Analysis
The Profitability Rank assesses a company's profitability and its likelihood of remaining profitable. RPM International Inc has a high Profitability Rank of 9/10. Its Operating Margin is 10.90%, and its Piotroski F-Score is 7, indicating a healthy profitability. The company has also demonstrated consistent profitability over the past 10 years.
Growth Rank Analysis
The Growth Rank measures a company's growth in terms of its revenue and profitability. RPM International Inc has a Growth Rank of 8/10, indicating strong growth potential. The company's 5-year revenue growth rate is 6.90%, and its 3-year revenue growth rate is 7.70%. Its 5-year EBITDA growth rate is an impressive 14.10%, further highlighting its robust growth.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. RPM International Inc has a GF Value Rank of 6/10, suggesting a fair valuation.
Momentum Rank Analysis
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. RPM International Inc has a Momentum Rank of 7/10, indicating a strong momentum in its stock price.
Competitor Analysis
When compared to its competitors in the Chemicals industry, RPM International Inc holds a strong position. Eastman Chemical Co (EMN, Financial) has a GF Score of 80, Avantor Inc (AVTR, Financial) has a GF Score of 75, and Axalta Coating Systems Ltd (AXTA, Financial) also has a GF Score of 75. RPM's higher GF Score of 89 indicates its superior potential for outperformance.
In conclusion, RPM International Inc's high GF Score, strong financial strength, impressive profitability, robust growth, fair valuation, and strong momentum make it a promising investment. However, investors should always conduct their own due diligence before making investment decisions.
