Is RPM International (RPM) a Fundamentally Strong Stock?
Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 3.88% gross of fees (3.82% net of fees), outperforming the Russell 1000 Value Index’s 1.01% and underperforming the S&P 500 Index’s 7.5% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like RPM International Inc. (NYSE:RPM) in the first quarter 2023 investor letter. Headquartered in Medina, Ohio, RPM International Inc. (NYSE:RPM) manufactures, markets, and sells specialty chemicals. On June 20, 2023, RPM International Inc. (NYSE:RPM) stock closed at $83.29 per share. One-month return of RPM International Inc. (NYSE:RPM) was 4.39%, and its shares gained 8.54% of their value over the last 52 weeks. RPM International Inc. (NYSE:RPM) has a market capitalization of $10.737 billion.
Aristotle Capital Value Equity Strategy made the following comment about RPM International Inc. (NYSE:RPM) in its first quarter 2023 investor letter:
"RPM International Inc. (NYSE:RPM), the coatings, sealants and building materials manufacturer, was one of the biggest detractors for the quarter. The combination of higher interest rates (which have negatively impacted construction activity and existing home sales), temporarily moderating customer purchases and cost inflation has weighed on the company and the overall coatings industry. Despite the challenging short‐term macroeconomic landscape, RPM continues to demonstrate fundamental improvement. In response to inflation, the company has successfully increased pricing while simultaneously launching and executing on its latest Margin Achievement Plan (MAP 2025), which aims to make operational improvements by optimizing RPM’s manufacturing footprint, expanding categories of centralized procurement and executing on value‐added selling. We believe the company’s ongoing focus on operational efficiency should allow it to continue to enhance its long‐term FREE cash flow generation, which it can use to innovate new products and opportunistically deploy capital in the form of accretive acquisitions or returning value back to shareholders, as demonstrated by RPM’s ability to increase its dividend for 49 consecutive years."
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RPM International Inc. (NYSE:RPM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held RPM International Inc. (NYSE:RPM) at the end of first quarter 2023 which was 26 in the previous quarter.
We discussed RPM International Inc. (NYSE:RPM) in another article and shared the list of under-the-radar dividend champions to consider. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
