Attractive Valuation with Earnings Momentum Set to Return in FY18
- The shares are off 15% from their June 2017 high, likely due to a disappointing FY17, and are trading at only 16.4x our 12-month forward EPS estimate, despite EPS modeled up an adjusted 15% in FY18 to a record $2.93.
- RPM’s revenue, diversified among the Industrial (52% of sales), Consumer (34%) and Specialty (14%) segments, along with 70% of revenue from maintenance, remodeling and repair products have resulted in 30 years of double-digit sales and earnings growth, which should continue as these markets are on an uptrend.
- RPM's dividend, raised for 43 straight years (only 45 of 19,000 public companies can claim an equal or better record), provides a current yield of 2.5%.
RPM International manufactures, markets and sells various chemical product lines, including paints, infrastructure rehab and repair products, protective coatings, roofing systems, sealants and adhesives. The company's segments include: industrial, which includes maintenance and protection products and services for roofing and waterproofing systems; specialty, which includes industrial cleaners, restoration services equipment, colorants, exterior finishes, edible coatings and other coatings; and consumer, which includes rust-preventative, special purpose and decorative paints, caulks, sealants, primers, nail enamels, cement cleaners, floor sealers and woodcare coatings and other consumer products.
Great Lakes Review is located in Cleveland, Ohio, was founded in 1981 and became a division of Wellington Shields & Co. LLC in 2011. Great Lakes Review is a research boutique focused on the fundamentally-oriented investor seeking companies that dominate their respective specialty niche regardless of industry. The objective is to make money for the long-term by gradually accumulating a diversified portfolio from a universe of no more than 30 companies. Although short-term-oriented accounts will be alerted to trading opportunities, aggressive sell recommendations are triggered only by a deterioration in long-term fundamentals, not by short-term blips or investor fancy. Coverage of those names that lose their earnings momentum or earnings predictability may be dropped and replaced with more vital candidates.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.