RPM Automotive Group (ASX:RPM) - Share price, News & Analysis

RPM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

RPM Stock Overview

RPM Automotive Group Limited engages in the manufacture, wholesale distribution, and retail of tires, and parts and accessories for transport industry in Australia.

Rewards

PE ratio (18x) is below the Australian market (18.6x)

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$44M)

Price History & Performance

Summary of all time highs, changes and price drops for RPM Automotive Group
Historical stock prices
Current Share Price	AU$0.29
52 Week High	AU$0.47
52 Week Low	AU$0.21
Beta	0.66
1 Month Change	-3.28%
3 Month Change	-10.61%
1 Year Change	28.26%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	78.79%

Shareholder Returns

	RPM	AU Auto Components	AU Market
7D	-1.7%	-2.3%	-2.8%
1Y	28.3%	13.1%	5.8%

Return vs Industry: RPM exceeded the Australian Auto Components industry which returned 13.1% over the past year.

Return vs Market: RPM exceeded the Australian Market which returned 5.8% over the past year.

Price Volatility

Is RPM's price volatile compared to industry and market?
RPM volatility
RPM Average Weekly Movement	6.1%
Auto Components Industry Average Movement	5.8%
Market Average Movement	8.6%
10% most volatile stocks in AU Market	15.4%
10% least volatile stocks in AU Market	3.7%

Stable Share Price: RPM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RPM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	n/a	Clive Finkelstein	https://www.rpmgroup.net.au

RPM Automotive Group Limited engages in the manufacture, wholesale distribution, and retail of tires, and parts and accessories for transport industry in Australia. It operates through Motorsport; Repairs and Roadside; Wheels and Tyres; and Accessories segments. The company offers specialized motorsport and automotive accessories; manufactures and sells motorsport racing suits; operates a Carline license for auto repair workshops; and provides roadside assistance services for tire repair and replacement.

RPM Automotive Group Fundamentals Summary

How do RPM Automotive Group's earnings and revenue compare to its market cap?
RPM fundamental statistics
Market Cap	AU$44.12m
Earnings (TTM)	AU$2.45m
Revenue (TTM)	AU$45.07m

18.0x

P/E Ratio

1.0x

P/S Ratio

Is RPM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RPM income statement (TTM)
Revenue	AU$45.07m
Cost of Revenue	AU$29.88m
Gross Profit	AU$15.20m
Expenses	AU$12.75m
Earnings	AU$2.45m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.016
Gross Margin	33.71%
Net Profit Margin	5.43%
Debt/Equity Ratio	22.0%

How did RPM perform over the long term?

See historical performance and comparison

Valuation

Is RPM Automotive Group undervalued compared to its fair value and its price relative to the market?

18.04x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RPM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RPM's fair value to establish if it is undervalued.

Price To Earnings Ratio

PE vs Industry: RPM is good value based on its PE Ratio (18x) compared to the Australian Auto Components industry average (25.6x).

PE vs Market: RPM is good value based on its PE Ratio (18x) compared to the Australian market (18.6x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RPM's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: RPM is good value based on its PB Ratio (1.7x) compared to the AU Auto Components industry average (3.9x).

Future Growth

How is RPM Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.7%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RPM Automotive Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has RPM Automotive Group performed over the past 5 years?

17.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RPM has a high level of non-cash earnings.

Growing Profit Margin: RPM became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: RPM has become profitable over the past 5 years, growing earnings by 17.8% per year.

Accelerating Growth: RPM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RPM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (81%).

Return on Equity

High ROE: RPM's Return on Equity (9.3%) is considered low.

Financial Health

How is RPM Automotive Group's financial position?

Financial Position Analysis

Short Term Liabilities: RPM's short term assets (A$22.1M) exceed its short term liabilities (A$12.8M).

Long Term Liabilities: RPM's short term assets (A$22.1M) exceed its long term liabilities (A$7.0M).

Debt to Equity History and Analysis

Debt Level: RPM's net debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: RPM's debt to equity ratio has reduced from 112.9% to 22% over the past 5 years.

Debt Coverage: RPM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: RPM's interest payments on its debt are well covered by EBIT (4.5x coverage).

Balance Sheet

Dividend

What is RPM Automotive Group current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RPM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RPM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RPM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RPM's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RPM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Automobiles industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure

CEO

Clive Finkelstein

no data

Tenure

AU$280,404

Compensation

Mr. Clive Finkelstein is Co-Founder and serves as Chief Executive Officer and Managing Director of RPM Automotive Group Limited and has been its Executive Director since August 28, 2019. Mr. Finkelstein is...

CEO Compensation Analysis

Compensation vs Market: Clive's total compensation ($USD202.03K) is below average for companies of similar size in the Australian market ($USD291.61K).

Compensation vs Earnings: Clive's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: RPM's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: RPM insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/01/23 07:03
End of Day Share Price	2022/01/21 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30