RPM International Inc. (RPM) vs Sasol Ltd. (SSL)

RPM International Inc. and Sasol Ltd. are both Specialty Chemicals companies. RPM International Inc. is the larger, with a market value of $12.6B against $9.1B — 1.4× the size. Sasol Ltd. trades at the lower P/E: 3.0× against 19.4×. Sasol Ltd. grew revenue faster over the last twelve months: 26.6% against 6.66%. Sasol Ltd. has the higher net margin (8.89% vs 8.38%) and the lower return on invested capital (0.00% vs 10.9%). Both pay a dividend; Sasol Ltd. yields more (10.7% vs 1.47%). Across the 20 metrics below, Sasol Ltd. leads on 11 and RPM International Inc. on 9.

Valuation

Metric RPM SSL Specialty Chemicals median
P/E 19.39 3.01 24.83
P/S 1.62 n/m 1.46
P/B 3.85 n/m 1.76
Price to free cash flow 18.27 n/m 19.84
EV/EBITDA 12.59 0.37 13.18
EV/Sales 1.90 0.11 1.84
Earnings yield 5.16% 33.21% 2.11%
Free cash flow yield 5.47% 0.00% 2.29%

Profitability

Metric RPM SSL Specialty Chemicals median
Gross margin 41.44% 33.45% 29.23%
Operating margin 12.29% 0.00% 3.63%
Net margin 8.38% 8.89% 2.89%
Free cash flow margin 8.88% 0.00% 3.78%
Return on equity 21.25% 0.00% 3.62%
Return on assets 8.17% 0.00% 0.35%
Return on invested capital 10.92% 0.00% 2.75%

Growth

Metric RPM SSL Specialty Chemicals median
Revenue growth (TTM) 6.66% 26.64% 4.51%
EPS growth (last fiscal year) (3.36%) 91.38% —
Revenue growth, 5-year CAGR 5.19% 4.12% 6.30%
Net income growth, 5-year CAGR 5.73% 4.08% 0.00%

Health

Metric RPM SSL Specialty Chemicals median
Debt to equity 0.76 0.65 0.54
Current ratio 1.68 1.79 1.94
Net debt to EBITDA 1.87 1.56 2.03

Dividend

Metric RPM SSL Specialty Chemicals median
Dividend yield 1.47% 10.69% 1.69%
Payout ratio 0.42 1.71 0.25

Size

Metric RPM SSL Specialty Chemicals median
Market cap 12.59b 9.06b 2.43b

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