RPM International (NYSE:RPM), with a market cap of 12.33B USD, has reported a Return on Capital Employed (ROCE) of 14%, surpassing the Chemicals industry average of 11%, according to data up until May 2023. The company's ROCE, calculated as US$762m ÷ (US$6.8b - US$1.5b), demonstrates a solid performance within the industry. Notably, InvestingPro data shows the company's P/E ratio standing at 25.63, and a PEG ratio of -12.43.
Over a five-year period, RPM International has increased its capital by 24%, while maintaining a steady return on that capital at 14%. This consistency in returns, though it may seem unremarkable, has the potential to yield significant shareholder benefits if sustained. The company's revenue growth, as per InvestingPro data, has been at 8.18% as of LTM2023.Q4, indicating a steady financial progression.
The report also draws a comparison between RPM's current ROCE and its historical performance. Analyst forecasts for future trends were referenced, suggesting that the company's financial stability might continue into the foreseeable future. An InvestingPro Tip worth noting here is that 9 analysts have revised their earnings upwards for the upcoming period, further strengthening the positive outlook for RPM International.
This news follows a period of steady returns for RPM International, which has managed to keep its return on capital consistent despite increasing the amount of capital employed. The company's ability to exceed industry averages and maintain stable returns could signal positive outcomes for shareholders moving forward. As per another InvestingPro Tip, RPM International has maintained dividend payments for 51 consecutive years, a testament to its stability and commitment to shareholders.
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