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RPM International (RPM)
NYSE:RPM
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RPM International
(NYSE:RPM)
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Select Model
Rating:69Neutral
Price Target:
$128.00
â–²(15.08% Upside)
RPM International's overall score is driven by strong financial performance and positive earnings call insights, highlighting robust sales growth and strategic investments. However, technical indicators suggest bearish momentum, and valuation metrics indicate only moderate attractiveness.
Positive Factors
Revenue Growth
Consistent revenue growth across all segments indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Strategic Acquisitions
Successful integration of strategic acquisitions enhances market position and product offerings, driving sustainable growth and competitive advantage.
Balance Sheet Health
A strong balance sheet with low leverage and high liquidity provides financial flexibility for strategic investments and resilience against economic uncertainties.
Negative Factors
Increased SG&A Expenses
Rising SG&A expenses can pressure margins and profitability, potentially limiting the company's ability to invest in growth and innovation.
Challenges in Consumer Segment
Weakness in the Consumer segment due to declining DIY demand may hinder overall revenue growth and require strategic adjustments to address market shifts.
Manufacturing Inefficiencies
Manufacturing inefficiencies from plant consolidations can increase costs and reduce operational efficiency, impacting profitability and requiring management focus to resolve.
RPM International (RPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.50B
Dividend Yield1.8%
Average Volume (3M)853.96K
Price to Earnings (P/E)21.1
Beta (1Y)0.84
Revenue Growth3.09%
EPS Growth12.25%
CountryUS
Employees17,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.88
Shares Outstanding128,218,720
10 Day Avg. Volume1,151,211
30 Day Avg. Volume853,960
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)5.03
Price to Sales (P/S)1.97
P/FCF Ratio26.98
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda17.03
Forecast
1Y Price Target
$133.46Price Target Upside19.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
RPM International Business Overview & Revenue Model
Company DescriptionRPM International Inc. manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; solutions for fire stopping and intumescent steel coating, and manufacturing industry; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers paint contractors and the DIYers solutions, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulk, sealant, adhesive, insulating foam, spackling, glazing, patch, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.
How the Company Makes MoneyRPM generates revenue primarily through the sale of its wide array of specialty coatings and building materials. The company operates multiple well-known brands, such as Rust-Oleum, DAP, and Zinsser, which contribute significantly to its earnings by targeting different consumer needs. Revenue streams include direct sales to contractors, distributors, and retailers, as well as e-commerce platforms. RPM also benefits from strategic partnerships and acquisitions that enhance its market presence and product offerings. The company's focus on innovation and sustainability, along with a strong distribution network, further bolsters its revenue potential, making it a key player in the specialty coatings and building materials industry.
RPM International Earnings Call Summary
Earnings Call Date:Oct 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 07, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales growth and successful integration of acquisitions, contributing to record performance across segments. However, increased expenses in SG&A, challenges in the Consumer segment, and inefficiencies from plant consolidations posed challenges to profitability. The company's strategic investments in growth and successful cost mitigation strategies were positive, but ongoing tariff impacts and healthcare cost increases remained concerns.Q1-2026 Updates
Positive Updates
Record Quarterly Sales Across All Segments
All segments achieved record quarterly sales and generated 6% growth or better, despite challenging macroeconomic conditions.
Successful Integration of Strategic Acquisitions
Integration of acquisitions like the Pink Stuff and Ready Seal contributed to record sales in the Consumer Group, with acquired businesses showing accretive margins.
Strong Performance in Europe and Emerging Markets
Growth was led by Europe, benefiting from acquisitions and favorable FX, while emerging markets like Africa and the Middle East showed strength driven by infrastructure projects.
Construction and Performance Coatings Groups Drive Organic Growth
Construction Products Group and Performance Coatings Group saw unit volume growth of 4% and 8% respectively, driven by turnkey solutions and strategic sales expansions.
Healthy Balance Sheet and Liquidity
The company maintains low leverage ratios and liquidity of $933 million, enabling strategic acquisitions and shareholder returns.
Outlook for Continued Growth
Expectations for another quarter of record sales and adjusted EBIT with mid-single-digit growth in sales and EBIT.
Negative Updates
Increased SG&A Expenses
SG&A as a percentage of sales increased due to higher healthcare costs ($8.8 million), M&A expenses, and growth investments, impacting profitability.
Challenges in Consumer Segment
DIY demand remained soft with negative organic growth, and product rationalization negatively impacted sales in the Consumer Group.
Manufacturing Inefficiencies from Plant Consolidations
Temporary cost inefficiencies arose from plant consolidations, impacting profitability with $10 million in unfavorable conversion costs.
Impact of Tariffs and Material Cost Inflation
Tariff impacts remain a challenge, particularly in consumer packaging, with only half of the $90 million tariff impact mitigated.
Healthcare Cost Increase
Significant increase in healthcare costs, driven by high-cost cases and coverage of weight loss drugs, added $8 million to expenses.
Company Guidance
During the RPM International fiscal 2026 first-quarter earnings call, the company provided guidance highlighting a strong performance with all segments achieving record quarterly sales, each generating 6% growth or better despite a challenging macro environment. The first quarter marked the fourteenth time in the last fifteen quarters where RPM achieved record adjusted EBIT, driven by sales growth and benefits from the MAP 2025 initiatives. The company noted investments in growth initiatives, including $5.3 million in additional spending on new sales and support staff, $3.2 million increased advertising, and $2.1 million in acquisition-related costs during Q1. RPM anticipates mid-single-digit growth in both sales and adjusted EBIT for the second quarter, with full-year sales expected at the high end of a low to mid-single-digit growth range and adjusted EBIT growth toward the lower end of high single-digit to low double-digit growth. RPM's strategic investments and operational efficiencies are positioned to support continued growth amidst ongoing economic uncertainties.RPM International Financial Statement Overview
Summary
RPM International demonstrates strong revenue growth and profitability, with improved leverage and equity positions. However, cash flow management shows some challenges, particularly with negative free cash flow growth.Income Statement
RPM International shows strong revenue growth with a TTM increase of 1.97% and consistent gross profit margins above 41%. The net profit margin has improved to 9.16% in the TTM, indicating enhanced profitability. However, the EBIT margin has slightly decreased, suggesting potential cost pressures.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has significantly improved to 0.11 in the TTM, reflecting reduced leverage and a stronger equity position. Return on equity remains robust at 24.31%, indicating efficient use of equity. The equity ratio is stable, supporting financial stability.78
Positive
Cash Flow
Operating cash flow remains positive, but free cash flow growth is negative in the TTM, indicating potential cash management challenges. The operating cash flow to net income ratio is moderate at 0.54, suggesting reasonable cash generation relative to earnings.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.52B | 7.37B | 7.34B | 7.26B | 6.71B | 6.11B |
| Gross Profit | 3.11B | 3.05B | 3.01B | 2.75B | 2.41B | 2.41B |
| EBITDA | 1.10B | 1.08B | 1.08B | 923.35M | 844.53M | 897.32M |
| Net Income | 688.60M | 688.69M | 588.40M | 478.69M | 491.48M | 502.64M |
Balance Sheet | ||||||
| Total Assets | 7.94B | 7.78B | 6.59B | 6.78B | 6.71B | 6.25B |
| Cash, Cash Equivalents and Short-Term Investments | 297.07M | 302.14M | 237.38M | 215.79M | 201.67M | 246.70M |
| Total Debt | 3.01B | 2.96B | 2.41B | 2.97B | 2.95B | 2.64B |
| Total Liabilities | 4.89B | 4.89B | 4.07B | 4.64B | 4.72B | 4.51B |
| Stockholders Equity | 3.06B | 2.89B | 2.51B | 2.14B | 1.98B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 515.99M | 538.26M | 908.34M | 322.67M | -43.67M | 608.96M |
| Operating Cash Flow | 757.64M | 768.19M | 1.12B | 577.11M | 178.73M | 766.16M |
| Investing Cash Flow | -943.84M | -825.53M | -206.44M | -249.70M | -259.55M | -326.39M |
| Financing Cash Flow | 243.75M | 121.94M | -890.03M | -301.16M | 57.39M | -459.62M |
RPM International Technical Analysis
Negative
111.23
Price Trends
121.57
Negative
117.16
Negative
116.69
Negative
Market Momentum
-2.74
Positive
27.55
Positive
4.37
Positive
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 111.23 is below the 20-day moving average (MA) of 118.75, below the 50-day MA of 121.57, and below the 200-day MA of 116.69, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 27.55 is Positive, neither overbought nor oversold. The STOCH value of 4.37 is Positive, 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 28 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 |
|---|---|---|---|---|---|---|---|
70 Neutral | $7.16B | 8.76 | 14.52% | 5.44% | 1.60% | -3.97% | |
69 Neutral | $14.50B | 21.12 | 24.05% | 1.80% | 3.09% | 12.25% | |
69 Neutral | $6.37B | 26.60 | 9.62% | 1.34% | 5.41% | 23.44% | |
63 Neutral | $22.95B | 18.03 | 16.88% | 2.79% | -10.59% | -7.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | $10.56B | 25.36 | -0.64% | 2.61% | -3.00% | -124.79% | |
50 Neutral | $15.71B | 83.39 | -2.74% | 2.69% | -0.07% | 83.36% |
* Basic Materials Sector Average
RPM
RPM International
111.23
-20.01
-15.25%
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RPM International Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
RPM International Strengthens Board with New Appointments
Positive
Jan 17, 2025
On January 13, 2025, RPM International Inc. announced the appointment of Craig S. Morford, Christopher L. Mapes, and Julie A. Beck to its Board of Directors, with Mr. Morford and Mr. Mapes assuming their roles immediately while Ms. Beck will join in April. These appointments are aimed at strengthening the board’s expertise and leadership to drive long-term growth and shareholder value. Mr. Morford brings extensive legal and compliance experience, Mr. Mapes offers insights into manufacturing innovation and operational strategies, and Ms. Beck provides financial leadership expertise. These strategic additions are expected to enhance the company’s governance as it pursues its strategic priorities.
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.