RPM Automotive Group Ltd. (RPM) AI Stock Analysis

• Market Cap: AU$7.36M
• Dividend Yield: N/A
• Average Volume (3M): 179.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -5.17%
• EPS Growth: -19.44%
• Country: AU
• Employees: 4
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 272,422,800
• 10 Day Avg. Volume: 286,528
• 30 Day Avg. Volume: 179,928
• PEG Ratio: -0.21
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: AU$0.03 ▼(-53.33% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak technicals (strong downtrend and negative momentum) and only moderate financial performance, particularly cash flow and profitability pressure. A low P/E provides meaningful valuation support, partially offsetting these risks.

Positive Factors

Stable Gross Margin

Stable gross margin signals durable cost control and pricing resilience in the auto-parts business. Over a 2-6 month horizon this consistency helps absorb raw-material or supply-chain cost swings, supports predictable gross profitability and reduces downside to operating cash flows.

Solid EBIT/EBITDA Margins

Reasonable EBIT and EBITDA margins reflect an efficient cost structure and operational leverage. These margins are a durable source of internal cash generation that can sustain maintenance capex and working capital, preserving operational continuity even if top-line growth pauses.

Manageable Leverage

A moderate debt-to-equity profile and healthy equity ratio indicate financial resilience and lower refinancing risk. This capital structure preserves liquidity and flexibility, enabling the company to navigate industry cyclicality and fund near-term strategic needs without severe solvency stress.

Negative Factors

Falling Revenues

Material negative revenue growth reduces scale and undermines future cash-flow generation. Over the next several months weaker top-line can exacerbate fixed-cost absorption issues, compress margins further and force the company to pursue structural actions to regain market traction.

Weak Cash Generation

Negative free cash flow growth and low operating-cash-to-net-income conversion signal persistent difficulties turning profits into liquidity. Sustained weak cash generation constrains capex, working capital funding and strategic flexibility, increasing reliance on external financing.

Profitability & ROE Decline

Declining net margins and falling ROE indicate worsening capital efficiency and reduced shareholder returns. If these trends persist, reinvestable earnings will shrink, hampering growth initiatives and making long-term recovery dependent on structural margin improvements or cost restructuring.

RPM Automotive Group Ltd. Business Overview & Revenue Model

Company Description

RPM Automotive Group Limited engages in the manufacture, wholesale distribution, and retail of tyres, and auto parts and accessories for automotive industry in Australia. It operates through Motorsport; Repairs & Roadside; Wheels & Tyres; and Accessories segments. The company offers mechanical repairs, motorsport apparel and safety equipment, niche manufacturing, and a roadside assistance service to the commercial and passenger vehicles. In addition, the company owns 25 retail outlets. It sells its products under the RPM Racewear, Carline, Genie, Air Anywhere, Formula Off-Road, and RPM Autoparts brands. The company was incorporated in 1982 and is based in Dandenong South, Australia.

RPM Automotive Group Ltd. Financial Statement Overview

Summary

Mixed fundamentals: stable gross margin and reasonable EBIT/EBITDA margins support operating efficiency, but net margin deterioration and negative revenue growth weigh on performance. Balance sheet leverage appears manageable, while cash flow is a key weakness due to poor cash conversion and negative free cash flow growth.

Income Statement

RPM Automotive Group Ltd. has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, indicating efficient cost management. However, the net profit margin has decreased significantly from previous years, reflecting challenges in converting revenue into profit. The revenue growth rate has turned negative, which is a concern for future growth prospects. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet of RPM Automotive Group Ltd. reveals a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has decreased, reflecting lower profitability. However, the equity ratio remains healthy, suggesting a stable financial position. The company has managed its debt levels well, but the declining ROE is a point of concern.

Cash Flow

The cash flow statement indicates challenges in cash generation, with a negative free cash flow growth rate. The operating cash flow to net income ratio is low, suggesting difficulties in converting profits into cash. The free cash flow to net income ratio is positive but has decreased, indicating potential liquidity issues. Overall, the cash flow position requires attention to ensure sustainable operations.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	105.56M	112.13M	118.24M	106.62M	70.80M	45.07M
Gross Profit	35.46M	40.39M	40.38M	33.91M	24.80M	15.20M
EBITDA	15.21M	9.29M	12.54M	7.89M	7.22M	3.77M
Net Income	1.28M	1.66M	4.41M	1.23M	2.65M	2.45M
Balance Sheet
Total Assets	108.67M	115.05M	115.43M	106.09M	93.39M	45.95M
Cash, Cash Equivalents and Short-Term Investments	3.90M	6.76M	6.28M	4.38M	7.05M	2.09M
Total Debt	50.50M	45.57M	41.52M	43.10M	35.95M	10.36M
Total Liabilities	52.55M	57.30M	60.64M	61.12M	54.38M	19.78M
Stockholders Equity	56.12M	57.75M	54.79M	44.96M	39.02M	26.17M
Cash Flow
Free Cash Flow	1.34M	3.59M	6.18M	-1.36M	-3.56M	-2.82M
Operating Cash Flow	4.31M	6.48M	7.63M	481.79K	-2.85M	-2.49M
Investing Cash Flow	-5.89M	-4.34M	-3.75M	-11.99M	-11.92M	-2.87M
Financing Cash Flow	-2.27M	-1.66M	-1.99M	8.84M	20.08M	5.02M

RPM Automotive Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RPM, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.05, and above the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 13.57 is Positive, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RPM.

RPM Automotive Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFC	66 Neutral	AU$257.00M	13.78	6.95%	4.50%	1.54%	-10.39%
ABV	62 Neutral	AU$49.73M	19.91	17.94%	―	25.15%	2.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RPM	57 Neutral	AU$7.36M	-2.30	2.26%	―	-5.17%	-19.44%
NTD	45 Neutral	AU$31.86M	-1.00	-13.84%	―	0.89%	-2641.38%

RPM Automotive Group Ltd. Corporate Events

RPM Automotive Flags H1 FY26 Results and Outlook Briefing

RPM Automotive Group has released a presentation of its first half FY26 results, outlining an agenda that includes an update on the business, an industry overview, a financial review and an outlook section. While detailed figures are not disclosed in the text provided, the structured agenda suggests the company is communicating its performance, market context and future expectations to investors and stakeholders in a formal briefing format.

The most recent analyst rating on (AU:RPM) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on RPM Automotive Group Ltd. stock, see the AU:RPM Stock Forecast page.

RPM Automotive lifts EBITDA despite revenue slide in tough first half

RPM Automotive Group reported a 10.9% fall in first-half FY26 revenue to $53.5 million and an 11.6% decline in gross profit to $18.5 million amid subdued macroeconomic conditions, particularly affecting its Wheels & Tyres and Performance & Accessories segments. Despite the softer top line and negative net cash flow, reported EBITDA rose 8% to $2.5 million, supported by stable gross margins and cost discipline, while the company continued to invest in new tyre initiatives and its Tyre Recycling Program, positioning for an anticipated recovery and ongoing growth in its motorsport and repairs businesses.

The Wheels and Tyres division was hit by weaker fleet demand, especially in Victoria, while Repairs and Roadside delivered modest revenue growth but saw profits squeezed by higher operating expenses. Performance and Accessories revenue fell following the sale of an underperforming unit and delivery delays, whereas Motorsport revenue climbed 8% as that segment strengthens its market position in soft parts and safety categories, underscoring a mixed divisional performance in a challenging environment.

The most recent analyst rating on (AU:RPM) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on RPM Automotive Group Ltd. stock, see the AU:RPM Stock Forecast page.

RPM Automotive Sets Date for H1 FY26 Results and Investor Webinar

RPM Automotive Group will release its financial results for the six months ended 31 December 2025 on 26 February 2026, underscoring the company’s ongoing reporting cadence as it grows its presence in the automotive aftermarket. On the same day, CEO Clive Finkelstein and CFO Rebecca Payne will host an investor webinar with a Q&A session, signaling continued engagement with shareholders and the market ahead of a critical earnings update.

The most recent analyst rating on (AU:RPM) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on RPM Automotive Group Ltd. stock, see the AU:RPM Stock Forecast page.

RPM Automotive Director Reduces Shareholding in Off-Market Transaction

RPM Automotive Group Limited has disclosed a change in director Clive Finkelstein’s relevant interest in the company’s shares, following an off-market sale associated with minority shareholders in RPM Australasia Pty Ltd and RPM Worldwide Group Pty Ltd. Finkelstein’s holding of fully paid ordinary shares decreased by 529,291 to 35,969,599 shares, for consideration of $29,640, with the company confirming that the trades did not occur during a closed period requiring prior written clearance, indicating a routine adjustment to his equity position rather than a governance or compliance issue.

The most recent analyst rating on (AU:RPM) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on RPM Automotive Group Ltd. stock, see the AU:RPM Stock Forecast page.