May 14, 2018

RPM – Market expectations are for declining Uniform ROA, but management is confident about their consolidation initiatives and sales


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      • RPM International Inc. (RPM:USA)currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 16.7x Uniform P/E, implying bearish expectations for the firm. However, management is confident about their consolidation initiatives and sales
      • Specifically, management generated an excitement marker when saying that the consolidation initiatives they have engaged in over the last year will allow them to take middle or upper single-digit growth and leverage it to drive even greater EBIT improvements. Additionally, they are confident that sales were particularly strong in their OEM Powdered Coatings and Pleasure Marine Coatings businesses, and that the combination of their Tremco and Tremco Illbruck businesses will allow them to better leverage SG&A manufacturing assets and business systems

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