RPM

RPM International, Inc.

Industrial/Transportation, Consumer


Presented:10/17/2019
Price:$68.79
Cap:$8.92B
Current Price:$132.65
Cap:$17.07B

Presented

Date10/17/2019
Price$68.79
Market Cap$8.92B
Ent Value$11.41B
P/E Ratio29.63x
Book Value$10.36
Div Yield2.09%
Shares O/S129.68M
Ave Daily Vol686,338
Short Int2.05%

Current

Price$132.65
Market Cap$17.07B
RPM International, Inc. engages in the manufacture, marketing, and sale of coatings, sealants, building materials, and related services. It operates through the following business segments: Industrial, Consumer, and Specialty. The Industrial segment is the maintenance and protection products for roofing and waterproofing systems, flooring, passive fire protection, corrosion control, high-performance sealing and bonding solutions, infrastructure rehabilitation and repair, and other construction chemicals. The Consumer segment is comprised of rust-preventative, special purpose and decorative paints, caulks, sealants, primers, nail enamels, cement and wood care coatings, and other branded consumer products. The Specialty segment includes industrial cleansers, restoration services equipment, colorants, exterior finishes, edible coatings, and other specialty original equipment manufacturer coatings. The company was founded by Frank C. Sullivan in May 1947 and is headquartered in Medina, OH.

Publicly traded companies mentioned herein: RPM International (RPM)

Highlights

The presenter is long shares of RPM International (RPM), Cleveland-based manufacturer and marketer of high-quality coatings, sealants, and building materials. He believes that the company’s cost-cutting initiatives and share buyback program will significantly boost the stock price. The company has ~$9B market cap, and the stock is trading at ~$70 per share, or 20.8x on the Street’s FY 2020 (ends on May 31, 2020) earnings. He sees 25% - 30% upside in the stock on the back of strong execution from the Operating Improvement Committee (OIC) and management.

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Idea Discussion

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