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RPM International
(NYSE:RPM)
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Rating:69Neutral
Price Target:
$111.00
▲(3.94% Upside)
Action:Reiterated
Date:07/22/26
RPM scores as moderately attractive, led by solid financial performance (strong margins and improving free cash flow) and a constructive earnings outlook supported by planned SG&A savings and mid-single-digit growth guidance. The score is held back by weak current technicals (price below key moving averages and negative MACD) and only fair valuation support (P/E ~19.5 with a ~2.1% yield).
Positive Factors
Margin & Profitability
Consistently strong gross (~41%) and operating (~12%) margins, plus repeated record adjusted EBIT results, indicate durable pricing power, efficient manufacturing and disciplined cost control. This structural profitability underpins reinvestment, supports M&A integration, and cushions results through commodity cycles.
Negative Factors
Raw-material inflation & supply tightness
Elevated input-cost inflation and supplier-specific tightness (propylene oxide, MDI) represent a persistent structural risk to margins and volumes until sourcing or pricing actions fully take hold. Prolonged tightness can force higher working capital, production delays, and incremental cost passthrough challenges across fiscal quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin & Profitability
Consistently strong gross (~41%) and operating (~12%) margins, plus repeated record adjusted EBIT results, indicate durable pricing power, efficient manufacturing and disciplined cost control. This structural profitability underpins reinvestment, supports M&A integration, and cushions results through commodity cycles.
Read all positive factors
RPM International Key Performance Indicators (KPIs)
Any
Adjusted EBIT by Segment
Provides insight into earnings before interest and taxes for each segment, reflecting the financial health and profitability of different areas of the business.
Provides insight into earnings before interest and taxes for each segment, reflecting the financial health and profitability of different areas of the business.
Data provided by:
The Fly
The FlyRPM International (RPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.05B
Dividend Yield2.17%
Average Volume (3M)1.34M
Price to Earnings (P/E)19.2
Beta (1Y)0.85
Revenue Growth6.66%
EPS Growth-3.58%
CountryUS
Employees17,546
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)5.19
Shares Outstanding127,584,114
10 Day Avg. Volume2,049,961
30 Day Avg. Volume1,339,083
Financial Highlights & Ratios
PEG Ratio-5.71
Price to Book (P/B)4.01
Price to Sales (P/S)1.69
P/FCF Ratio19.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$129.11Price Target Upside20.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)6
Revenue Forecast (FY)$8.30B
RPM International Business Overview & Revenue Model
Company Description
RPM International Inc. provides specialty chemicals for the construction, industrial, specialty, and consumer markets. It operates in four segments: CPG, PCG, Consumer, and SPG. The company offers waterproofing, coating, and traditional roofing sy...
How the Company Makes Money
RPM makes money primarily by manufacturing and selling specialty chemical products—especially coatings, sealants, and building-material solutions—through multiple operating segments and channels. Revenue is generated from product sales to (1) prof...
RPM International Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record financial metrics (sales, adjusted EBIT, adjusted EPS), strong cash generation, effective procurement and operational-improvement programs, and continued segment-level momentum—particularly in CPG, PCG and emerging markets. Management balanced this optimism with clear disclosure of near-term headwinds: elevated raw material inflation (especially early in FY2027), supplier-specific tightness, consumer DIY weakness, and some one-time charges and consolidation costs. Given the solid financial results, sizable cash flow, actionable cost-savings plans and constructive guidance that more than offset the enumerated challenges, the tone is constructive and confident despite acknowledged volatility.Positive Updates
Record Financial Results
Consolidated sales increased 7.2% to a record for the quarter; adjusted EBIT and adjusted EPS both reached record levels. RPM expanded consolidated adjusted EBIT margins to a fourth-quarter record and has achieved record adjusted EBIT in 16 of the last 18 quarters.
Negative Updates
Raw Material Inflation and Tightness
Management expects raw material inflation of ~5%–6% in Q1 FY2027 and potentially 6%–8% in Q2, with inflation moderating later in the year. A supplier plant fire has caused tightness in propylene oxide-derived raw materials in North America and MDI supplies are also tight, creating cost and availability headwinds and temporary sales impacts (e.g., Tremco roofing).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Financial Results
Consolidated sales increased 7.2% to a record for the quarter; adjusted EBIT and adjusted EPS both reached record levels. RPM expanded consolidated adjusted EBIT margins to a fourth-quarter record and has achieved record adjusted EBIT in 16 of the last 18 quarters.
Read all positive updates
Company Guidance
RPM guided to continued mid-single‑digit momentum in Q1 FY2027 — management expects sales and adjusted EBITDA to each rise in the mid‑single‑digit range, with first‑quarter raw‑material inflation of about 5%–6% (pricing up by a similar dollar amount) and potential Q2 inflation of 6%–8%; announced SG&A reductions should deliver roughly $25M of benefit in Q1 and about $75M for FY2027, M&A is expected to add ~1 point to full‑year sales, and full‑year FY2027 targets are sales growth of 3%–7% and adjusted EBITDA growth of 5%–10% (with capex roughly $220M–$240M); management also expects price/cost to be somewhat negative in H1 and more neutral in H2 as further price increases take effect, with prior plant consolidation headwinds (~$20M in FY2026) largely abating (about half the prior impact and an estimated $10M–$12M pickup in H2).RPM International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.86B | 7.37B | 7.34B | 7.26B | 6.71B |
| Gross Profit | 3.26B | 3.05B | 3.01B | 2.75B | 2.41B |
| EBITDA | 981.88M | 1.08B | 1.08B | 923.35M | 844.53M |
| Net Income | 661.39M | 688.69M | 588.40M | 478.69M | 491.48M |
Balance Sheet | |||||
| Total Assets | 8.34B | 7.78B | 6.59B | 6.78B | 6.71B |
| Cash, Cash Equivalents and Short-Term Investments | 315.19M | 302.14M | 237.38M | 215.79M | 201.67M |
| Total Debt | 2.87B | 2.96B | 2.41B | 2.97B | 2.95B |
| Total Liabilities | 5.03B | 4.89B | 4.07B | 4.64B | 4.72B |
| Stockholders Equity | 3.31B | 2.89B | 2.51B | 2.14B | 1.98B |
Cash Flow | |||||
| Free Cash Flow | 675.20M | 538.26M | 908.34M | 322.67M | -43.67M |
| Operating Cash Flow | 898.71M | 768.19M | 1.12B | 577.11M | 178.73M |
| Investing Cash Flow | -417.17M | -825.53M | -206.44M | -249.70M | -259.55M |
| Financing Cash Flow | -482.23M | 121.94M | -890.03M | -301.16M | 57.39M |
RPM International Technical Analysis
Negative
106.79
Price Trends
108.01
Negative
105.78
Negative
105.74
Negative
Market Momentum
-2.17
Positive
34.32
Neutral
24.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPM, the sentiment is Negative. The current price of 106.79 is below the 20-day moving average (MA) of 107.41, below the 50-day MA of 108.01, and above the 200-day MA of 105.74, indicating a bearish trend. The MACD of -2.17 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 24.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPM.
RPM International Risk Analysis
RPM International disclosed 27 risk factors in its most recent earnings report. RPM International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RPM International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $79.16B | 29.28 | 62.12% | 0.99% | 5.76% | 7.42% | |
71 Outperform | $7.60B | 21.13 | 14.59% | ― | -0.92% | -20.25% | |
69 Neutral | $13.05B | 19.21 | 20.93% | 2.17% | 6.66% | -3.58% | |
62 Neutral | $24.39B | 15.27 | 19.47% | 2.68% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.85B | 15.20 | 9.16% | 1.85% | -0.57% | 81.10% | |
60 Neutral | $3.33B | 63.01 | 2.77% | 2.32% | -1.39% | ― |
* Basic Materials Sector Average
RPM
RPM International
99.71
-25.98
-20.67%
ASH
Ashland
71.83
18.63
35.02%
FUL
H.B. Fuller Company
51.84
-10.91
-17.38%
PPG
PPG Industries
107.16
-1.82
-1.67%
SHW
Sherwin-Williams Company
320.64
-44.57
-12.21%
AXTA
Axalta Coating Systems
34.44
2.66
8.37%
RPM International Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
RPM International Posts Record Results, Expands Buyback Program
Positive
Jul 22, 2026
On July 22, 2026, RPM International reported record fiscal 2026 fourth-quarter and full-year results, underscoring continued momentum despite a volatile economic backdrop. For the quarter ended May 31, 2026, net sales rose 7.2% to $2.23 billion, d...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
RPM International Announces Leadership Transition Amid Executive Retirement
Neutral
Jun 2, 2026
On May 27, 2026, RPM International Inc. amended its $300 million accounts receivable securitization facility, simplifying pricing on SOFR-based borrowings, removing an interest coverage covenant, and clarifying that its applicable margin applies c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.