Is RPM International (RPM) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is RPM International (RPM). RPM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 18.31 right now. For comparison, its industry sports an average P/E of 23.45. Over the past 52 weeks, RPM's Forward P/E has been as high as 22.41 and as low as 17.15, with a median of 19.09.
Investors should also note that RPM holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RPM's PEG compares to its industry's average PEG of 1.82. RPM's PEG has been as high as 4.33 and as low as 1.30, with a median of 1.47, all within the past year.
We should also highlight that RPM has a P/B ratio of 5.71. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 14.08. RPM's P/B has been as high as 6.70 and as low as 4.80, with a median of 5.54, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RPM has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.91.
Finally, investors should note that RPM has a P/CF ratio of 18.20. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RPM's current P/CF looks attractive when compared to its industry's average P/CF of 19.86. RPM's P/CF has been as high as 20.30 and as low as 14.09, with a median of 16.75, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that RPM International is likely undervalued currently. And when considering the strength of its earnings outlook, RPM sticks out at as one of the market's strongest value stocks.
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RPM International Inc. (RPM) : Free Stock Analysis Report
