The Chemical Lung Company (RPM)

Get a load of this list—

RPM International Inc. (NYSE:RPM) “manufactures and sells waterproofing, coatings, sealants, air barriers, tapes, foams, resins, grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, cladding materials and concrete form wall systems.  It also provides polymer flooring systems, fiberglass reinforced plastic gratings and shapes, corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products, amine curing agents, reactive diluents, fluorescent colorants and pigments and shellac-based-specialty coatings.”

Whew!

All the Poison That’s Fit To Kill

We’re not so well inclined towards those who would kill us—collaterally, to be sure (as if that matters once you’re pushing up daisies)—via their lust for profits.

Something about it never sat right with us.

But so be it.

If we have to use them as pawns in our slow but steady climb to replace the MUSK man as world’s richest, then so be it.

Thanks, Marce.

Let’s start with a one-two look at some numbers.

• Fundamentally, RPM posts a bloated 26.79 P/E, with analyst consensus pointing toward a contraction to just 17.75 a year from now.  Not good.
• Dividend Yield is 1.68%, and…
• Price to Book is off the periodic table at 5.93 (!).
• Debt to Equity is also beyond extreme at 1.25.
• Regarding Earnings, latest numbers released on July 25^th show a Q/Q DECLINE of 23.60%, and…
• A DECLINE of 2.00% for the full year.

So, there’s nothing much here to laugh about.

We would only add that the company has been undergoing an expensive restructuring and has also spent a significant sum on acquisitions (hence the debt), along with suffering increased inflation-induced labor and freight costs.

Supply-chain issues are also universal, and RPM has not been immune.

In short, H2 is lining up to be very bumpy for the company.

As for her chart—

May the G-d of Heaven and Earth shine His countenance upon you, good Jews and Noahides!

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew