Is RPM International (RPM) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is RPM International (RPM). RPM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 19.97 right now. For comparison, its industry sports an average P/E of 24.76. Over the past year, RPM's Forward P/E has been as high as 22.41 and as low as 16.90, with a median of 18.68.
Investors should also note that RPM holds a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RPM's PEG compares to its industry's average PEG of 1.93. Within the past year, RPM's PEG has been as high as 1.96 and as low as 1.22, with a median of 1.42.
Investors should also recognize that RPM has a P/B ratio of 6.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 14.88. Within the past 52 weeks, RPM's P/B has been as high as 6.43 and as low as 4.80, with a median of 5.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RPM has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.57.
Finally, investors should note that RPM has a P/CF ratio of 19.48. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.27. Within the past 12 months, RPM's P/CF has been as high as 20.30 and as low as 14.09, with a median of 16.91.
These are only a few of the key metrics included in RPM International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RPM looks like an impressive value stock at the moment.
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RPM International Inc. (RPM) : Free Stock Analysis Report
