RPM International (NYSE:RPM)

RPM International Inc is a multinational holding company that manufactures and markets high-performance specialty coatings., of the sealing products and some building materials. THE pRPM products are used by professionals and amateurs alike. for home maintenance and boat maintenance. The company has approximately 9,000 employees worldwide working in 77 branches in 20 countries. Its products are sold in 150 countries. Its shares are held by around 300 institutions and 82,000 individual investors. 

RPM has increased its dividend for 37 consecutive years, placing the company in an elite category among the 19,000 publicly traded companies in the United States. Only 49 other companies have paid a dividend for at least as long in a row..

THE long term average return is particularly interesting, with 4.36%. The Price/Earnings ratio confirms this attractive valuation, with 13.30. On the other hand, with a average annual growth of 4.36%, the progression of dividends is very weak. The distribution ratio is reasonable, with 55.52%, which still leaves room for RPM to increase its dividend, even in the event of a difficult passage.

RPM is quite sensitive to market fluctuations, with a beta of 1.38. Volatility, with 16.50% is also quite high, but still slightly lower than the market. The stock's performance is similar to that of the market over the very long term.

30% of RPM's net revenues come from outside the United States. Whatnd the dollar weakens, international sales revenues increase, and vice versa. We see this inverse relationship to some extent between USD/CHF and RPM, but we cannot say that the stock offers protection against fluctuations in its currency (as can be seen with CVX for example).

RPM has some similarities with AWR. Both have good yields, but their distribution growth leaves something to be desired. However, AWR has an impressive 57-year track record of successive increases, which RPM cannot value, despite its 37 years (which is already more than respectable). AWR also has less volatility than RPM.

Ultimately, we consider that RPM, like AWR, is a title to keep in portfolio if one has already made its acquisition. On the other hand, it does not justify a purchase, given the relatively low profit potential and rather high risk.

Sources: wikipedia.org, wikinvest.com, yahoo.com, swissquote.ch, dividends.ch