RPM Automotive Group Ltd. (RPM) AI Stock Analysis

• Market Cap: AU$16.81M
• Dividend Yield: N/A
• Average Volume (3M): 179.93K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.70
• 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: 271,105,320
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: AU$0.06 ▲(26.00% Upside)

The stock's overall score is primarily influenced by its mixed financial performance and bearish technical indicators. While the valuation is attractive, the company's declining revenue growth and cash flow challenges pose significant risks. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Operational Efficiency

Stable operational efficiency with consistent margins indicates effective cost management, which can support long-term profitability even amidst revenue challenges.

Market Reach

An extensive distribution network and strategic partnerships enhance market reach and profitability, providing a competitive edge in the automotive aftermarket sector.

Balance Sheet Health

A stable balance sheet with manageable debt levels indicates financial stability, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Revenue Growth Decline

Negative revenue growth poses a risk to future expansion and market position, potentially limiting the company's ability to invest in new opportunities and maintain competitive advantages.

Cash Flow Challenges

Challenges in cash generation and negative free cash flow growth could strain liquidity, affecting the company's ability to fund operations and strategic initiatives sustainably.

Profitability Concerns

A significant decrease in net profit margin highlights difficulties in converting revenue into profit, which may impact long-term financial health and shareholder returns.

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.

How the Company Makes Money

RPM generates revenue through multiple streams, primarily from the sale of automotive parts and accessories through its retail and online platforms. A significant portion of its income comes from wholesale distribution agreements with manufacturers, providing a steady supply of products to dealerships and repair shops. Additionally, RPM capitalizes on its e-commerce capabilities, driving sales through its online marketplace, which attracts a broad customer base. Partnerships with key automotive brands and manufacturers enhance its product offerings and market reach, while also contributing to exclusive product lines that boost profitability. Furthermore, RPM benefits from value-added services such as installation and maintenance, allowing for additional revenue opportunities.

RPM Automotive Group Ltd. Financial Statement Overview

Summary

RPM Automotive Group Ltd. shows operational efficiency with stable margins, but declining revenue growth and profitability are concerning. The balance sheet is stable with manageable debt levels, yet cash flow challenges highlight potential liquidity risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	112.13M	112.13M	118.24M	106.62M	70.80M	45.07M
Gross Profit	40.39M	40.39M	40.38M	33.91M	24.80M	15.20M
EBITDA	13.10M	9.29M	12.54M	7.89M	7.22M	3.77M
Net Income	1.66M	1.66M	4.41M	1.23M	2.65M	2.45M
Balance Sheet
Total Assets	115.05M	115.05M	115.43M	106.09M	93.39M	45.95M
Cash, Cash Equivalents and Short-Term Investments	6.76M	6.76M	6.28M	4.38M	7.05M	2.09M
Total Debt	45.57M	45.57M	41.52M	43.10M	35.95M	10.36M
Total Liabilities	57.30M	57.30M	60.64M	61.12M	54.38M	19.78M
Stockholders Equity	57.75M	57.75M	54.79M	44.96M	39.02M	26.17M
Cash Flow
Free Cash Flow	3.59M	3.59M	6.18M	-1.36M	-3.56M	-2.82M
Operating Cash Flow	6.48M	6.48M	7.63M	481.79K	-2.85M	-2.49M
Investing Cash Flow	-4.34M	-4.34M	-3.75M	-11.99M	-11.92M	-2.87M
Financing Cash Flow	-1.66M	-1.66M	-1.99M	8.84M	20.08M	5.02M

RPM Automotive Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 15.05 is Positive, 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$290.16M	11.96	10.48%	4.39%	1.54%	-10.39%
RPM	63 Neutral	AU$16.81M	3.56	8.25%	―	-5.17%	-19.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ABV	61 Neutral	AU$45.75M	25.00	18.17%	―	25.15%	2.22%
NTD	48 Neutral	AU$50.31M	-1.02	-44.12%	―	0.89%	-2641.38%

RPM Automotive Group Ltd. Corporate Events

RPM Automotive Director Increases Stake, Signaling Confidence in Company

RPM Automotive Group Ltd. announced a change in the interests of its director, Kevin Berkowitz, who increased his holdings in the company through an on-market trade and an issue of ordinary shares in lieu of director fees. This change reflects a significant increase in Berkowitz’s stake, indicating confidence in the company’s future performance and aligning his interests more closely with those of the shareholders.

RPM Automotive Director Increases Shareholding

RPM Automotive Group Ltd. announced a change in the director’s interest, with Director Grant Carman acquiring 634,920 fully paid ordinary shares, increasing his total to 2,306,348 shares. This acquisition was made in lieu of director fees, as approved by shareholders at the recent AGM, potentially impacting the company’s governance and aligning director interests with shareholder value.

RPM Automotive Issues New Shares in Compliance with Corporations Act

RPM Automotive Group Limited has announced the issuance of 1,317,460 ordinary fully paid shares without a disclosure document under Section 708 of the Corporations Act. The company confirms its compliance with relevant provisions of the Corporations Act and states there is no excluded information that needs to be disclosed, indicating a transparent and compliant operation.

RPM Automotive Group Issues Shares to Directors

RPM Automotive Group Ltd. has announced the issuance of 1,317,460 ordinary fully paid shares to its directors in lieu of directors’ fees, as approved at the recent Annual General Meeting. This strategic move is aimed at aligning the interests of the directors with those of the shareholders, potentially enhancing the company’s governance and operational focus.

RPM Automotive Group Ltd. Announces Successful AGM Outcomes

RPM Automotive Group Ltd. announced the results of its Annual General Meeting, where all resolutions were passed by poll. Key resolutions included the adoption of the Remuneration Report, re-election and election of directors, issuance of shares in lieu of directors’ fees, approval of an Employee Long Term Incentive Plan, and an additional 10% placement facility. The successful passage of these resolutions signifies strong shareholder support and positions the company for continued strategic growth and operational enhancements.

RPM Automotive Group Outlines Strategic Initiatives for FY25

RPM Automotive Group Ltd, a company listed on the ASX under the ticker RPM, recently held its annual general meeting where key executives, including CEO Clive Finkelstein and CFO Rebecca Payne, presented the company’s strategic initiatives and trading outlook for the fiscal year 2025. The presentation highlighted RPM’s focus on enhancing its market position through strategic initiatives, which are expected to impact its operations positively and provide a favorable outlook for stakeholders.

RPM Automotive Group Ltd. Announces AGM with Key Resolutions

RPM Automotive Group Ltd. has announced its Annual General Meeting (AGM) scheduled for November 26, 2025, where shareholders will discuss several key resolutions. These include the adoption of the remuneration report, re-election and election of directors, and the issuance of shares to directors in lieu of cash fees. The meeting will address important governance and compensation matters, potentially impacting the company’s financial management and stakeholder relations.