RPM International Gross Profit vs. Return On Equity
| RPM Stock | USD 139.60 0.66 0.47% |
Gross Profit | First Reported 1985-08-31 | Previous Quarter 830.6 M | Current Value 836.7 M | Quarterly Volatility 208.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.47 | 0.411 |
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| Net Profit Margin | 0.0417 | 0.0802 |
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| Operating Profit Margin | 0.065 | 0.1207 |
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| Pretax Profit Margin | 0.0879 | 0.1074 |
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| Return On Assets | 0.0603 | 0.0893 |
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| Return On Equity | 0.12 | 0.2343 |
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For RPM International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RPM International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RPM International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RPM International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RPM International over time as well as its relative position and ranking within its peers.
RPM |
RPM International's Revenue Breakdown by Earning Segment
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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RPM International. If investors know RPM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RPM International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.132 | Dividend Share 1.84 | Earnings Share 4.77 | Revenue Per Share 57.068 | Quarterly Revenue Growth (0.02) |
The market value of RPM International is measured differently than its book value, which is the value of RPM that is recorded on the company's balance sheet. Investors also form their own opinion of RPM International's value that differs from its market value or its book value, called intrinsic value, which is RPM International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RPM International's market value can be influenced by many factors that don't directly affect RPM International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RPM International's value and its price as these two are different measures arrived at by different means. Investors typically determine if RPM International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RPM International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
RPM International Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RPM International's current stock value. Our valuation model uses many indicators to compare RPM International value to that of its competitors to determine the firm's financial worth. RPM International is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for RPM International is about 9,732,212,000 . At this time, RPM International's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value RPM International by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.RPM Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
RPM International |
| = | 2.43 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
RPM International |
| = | 0.25 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
RPM Return On Equity Comparison
RPM International is currently under evaluation in return on equity category among its peers.
RPM International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RPM International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RPM International will eventually generate negative long term returns. The profitability progress is the general direction of RPM International's change in net profit over the period of time. It can combine multiple indicators of RPM International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -537.3 M | -510.4 M | |
| Operating Income | 885.2 M | 929.4 M | |
| Income Before Tax | 787.8 M | 827.2 M | |
| Total Other Income Expense Net | -97.3 M | -92.5 M | |
| Net Income | 589.4 M | 618.9 M | |
| Income Tax Expense | 198.4 M | 208.3 M | |
| Net Income Applicable To Common Shares | 550.5 M | 578 M | |
| Net Income From Continuing Ops | 589.4 M | 361.5 M | |
| Non Operating Income Net Other | 21.7 M | 13.9 M | |
| Net Interest Income | -97 M | -101.9 M | |
| Interest Income | 20.9 M | 11.2 M | |
| Change To Netincome | 42.1 M | 35.9 M | |
| Net Income Per Share | 4.61 | 4.84 | |
| Income Quality | 1.90 | 1.18 | |
| Net Income Per E B T | 0.75 | 0.54 |
RPM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RPM International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of RPM International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the RPM International's important profitability drivers and their relationship over time.
Use RPM International in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if RPM International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RPM International will appreciate offsetting losses from the drop in the long position's value.RPM International Pair Trading
RPM International Pair Trading Analysis
The ability to find closely correlated positions to RPM International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RPM International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back RPM International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling RPM International to buy it.
The correlation of RPM International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as RPM International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RPM International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for RPM International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your RPM International position
In addition to having RPM International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center. To learn how to invest in RPM Stock, please use our How to Invest in RPM International guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project RPM International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RPM International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include RPM International's income statement, its balance sheet, and the statement of cash flows.