RPM Automotive Group Ltd. (RPM) AI Stock Analysis

• Market Cap: AU$16.00M
• Dividend Yield: N/A
• Average Volume (3M): 462.15K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.56
• Revenue Growth: 12.63%
• EPS Growth: 46.73%
• Country: AU
• Employees: 4
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Auto - Parts
• EPS (TTM): <0.01
• Shares Outstanding: 271,105,320
• 10 Day Avg. Volume: 690,324
• 30 Day Avg. Volume: 462,151
• PEG Ratio: -0.21
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.53
• 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

• Rating: 74 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

RPM Automotive Group Ltd. benefits from strong financial performance with consistent revenue growth and operational improvements. Its undervaluation based on the P/E ratio suggests potential investment appeal. However, technical analysis indicates overbought conditions, which could impact short-term stock performance. The company’s positive trajectory in financial metrics is the most significant factor in its overall score.

RPM Automotive Group Ltd. Business Overview & Revenue Model

Company Description

RPM Automotive Group Ltd. (RPM) is an integrated automotive company based in Australia, specializing in the sale of automotive parts and accessories, as well as offering maintenance and repair services. The company operates through several sectors including retail, wholesale distribution, and services within the automotive aftermarket industry. RPM is dedicated to providing high-quality automotive products and reliable services to both consumer and commercial clients.

How the Company Makes Money

RPM Automotive Group Ltd. generates revenue primarily through the sale of automotive parts and accessories, which comprises a significant portion of its business. This is complemented by its provision of maintenance and repair services, which attract both individual vehicle owners and commercial clients. The company also benefits from wholesale distribution, supplying automotive products to various retailers and service providers. Key partnerships with manufacturers and suppliers enhance RPM's product offerings and pricing strategies, contributing to its profitability. Additionally, RPM's diversified operations across different segments of the automotive industry help stabilize its revenue in fluctuating market conditions.

RPM Automotive Group Ltd. Financial Statement Overview

Summary

RPM Automotive Group Ltd. has shown strong financial performance with consistent revenue growth, improved gross and net profit margins, and positive cash flow from operations. The balance sheet reflects a solid equity base and reduced financial leverage, although there is room to enhance net profit margins and ROE.

Income Statement

RPM Automotive Group Ltd. has demonstrated consistent revenue growth, with a CAGR of approximately 26% over the past five years, highlighting strong top-line growth. The gross profit margin has improved significantly, reaching 34.1% in 2024, up from 12.8% in 2020, indicating effective cost management. Net profit margins have also improved, rising to 3.7% in 2024 from negative figures in prior years. The company's EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency improvements. However, there is room for enhancing net profit margins to further improve profitability.

Balance Sheet

RPM Automotive Group Ltd. exhibits a stable balance sheet with a debt-to-equity ratio of 0.76 in 2024, down from 1.09 in 2020, indicating reduced financial leverage and improved financial health. The equity ratio stands at 47.5%, showing a solid equity base relative to total assets. Return on equity has improved significantly, reaching 8.0% in 2024, but still leaves room for enhancement. Nonetheless, the company's total liabilities have increased, which could pose risks if revenue growth slows.

Cash Flow

The company's cash flow from operations has turned positive, with a significant increase in free cash flow to $6.2 million in 2024 from negative figures in previous years. The operating cash flow to net income ratio is robust at 1.73, indicating effective cash conversion from profits. However, free cash flow to net income remains less strong, suggesting potential areas for improved cash management. While the improvement is notable, sustaining positive cash flow amidst investment activities remains crucial.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	122.77M	118.24M	106.62M	70.80M	45.07M	32.47M
Gross Profit	42.75M	40.38M	30.21M	22.49M	14.07M	4.16M
EBITDA	11.96M	12.55M	8.88M	7.22M	3.77M	-52.28K
Net Income	1.30M	4.40M	1.23M	2.66M	2.45M	-1.51M
Balance Sheet
Total Assets	112.85M	115.43M	106.09M	93.39M	45.95M	33.14M
Cash, Cash Equivalents and Short-Term Investments	7.74M	6.28M	4.38M	7.05M	2.09M	2.08M
Total Debt	40.96M	41.52M	43.10M	35.95M	10.36M	8.04M
Total Liabilities	57.90M	60.64M	61.12M	54.38M	19.78M	15.97M
Stockholders Equity	54.95M	54.79M	44.96M	39.02M	26.17M	17.18M
Cash Flow
Free Cash Flow	4.54M	6.18M	-1.36M	-3.56M	-2.82M	-1.40M
Operating Cash Flow	5.76M	7.63M	481.79K	-2.85M	-2.49M	-1.38M
Investing Cash Flow	-1.32M	-3.75M	-11.99M	-11.92M	-2.87M	-630.62K
Financing Cash Flow	-674.84K	-1.99M	8.84M	20.08M	5.02M	4.03M

RPM Automotive Group Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RPM, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 77.46 is Negative, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SUL	77 Outperform	AU$3.22B	14.24	17.52%	4.48%	2.56%	-13.62%
RPM	74 Outperform	AU$16.00M	3.76	6.94%	―	12.63%	46.73%
ARB	72 Outperform	$2.66B	24.94	15.18%	2.19%	6.17%	10.45%
Sector *	61 Neutral	AU$2.79B	25.61	5.01%	5.45%	2.63%	-29.95%
AMA	57 Neutral	AU$526.09M	525.00	1.53%	―	-1.09%	―
BAP	47 Neutral	€1.67B	―	-16.06%	3.26%	-0.30%	-267.50%

RPM Automotive Group Ltd. Corporate Events

RPM Automotive Group Director Increases Shareholding

RPM Automotive Group Ltd. announced a change in the director’s interest, with Director Kevin Berkowitz acquiring an additional 450,000 fully paid ordinary shares through an on-market trade. This acquisition increases Berkowitz’s total holdings to 5,950,000 shares, potentially signaling confidence in the company’s future performance and stability, which could positively impact stakeholder perceptions.

DMX Asset Management Increases Stake in RPM Automotive Group

RPM Automotive Group Ltd. has experienced a change in the interests of its substantial shareholder, DMX Asset Management Limited. The notice indicates an increase in voting power from 10.76% to 11.86%, reflecting recent on-market purchases of ordinary shares. This change signifies a growing confidence and investment in RPM Automotive Group Ltd. by DMX Asset Management, potentially impacting the company’s market positioning and stakeholder interests.

RPM Automotive Group Ltd. Appoints New Director with Significant Shareholding

RPM Automotive Group Ltd. has announced the appointment of Kevin Berkowitz as a new director, effective June 3, 2025. This appointment is accompanied by Berkowitz’s significant interest in the company, holding 4,000,000 fully paid ordinary shares and 435,290 unlisted options. Additionally, through the Berkowitz Superannuation Fund, he holds 1,500,000 fully paid ordinary shares and 953,613 unlisted options. This move is likely to strengthen the company’s leadership and potentially influence its strategic direction, impacting stakeholders positively.

RPM Automotive Group Appoints Kevin Berkowitz to Board

RPM Automotive Group Limited has appointed Kevin Berkowitz as an independent non-executive director, bringing his extensive commercial experience and strategic insight to the board. This appointment is expected to enhance RPM’s strategic oversight and governance as the company focuses on capital employment and distribution, strengthening its position in the automotive aftermarket industry.

RPM Automotive Opens New Tyre Recycling Facility, Reports Positive Trading Update

RPM Automotive Group Limited has announced the grand opening of its new tyre recycling facility, which is now fully operational and expected to exceed initial production forecasts. This development is part of RPM’s strategic focus on expanding its Tyre Division and enhancing its National Fleet business. The company reported a sales revenue of $89.9 million and an EBITDA of $9.5 million for the nine months FYTD, reflecting a 1.4% and 8.2% increase respectively compared to the previous corresponding period. RPM remains financially robust, with sufficient funding for working capital and organic growth, and is on track to achieve its FY25 revenue and EBITDA guidance.

RPM Automotive Group Sees Increase in Substantial Shareholder Interest

RPM Automotive Group Ltd. has experienced a change in the interests of its substantial shareholder, DMX Asset Management Limited. The shareholder’s voting power increased from 9.64% to 10.76% due to recent on-market purchases of ordinary shares. This change in shareholder interest may impact the company’s governance and decision-making processes, reflecting a stronger influence by DMX Asset Management in the company’s strategic direction.