RPM International (RPM) AI Stock Analysis

• Market Cap: $14.17B
• Dividend Yield: 1.85%
• Average Volume (3M): 808.78K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.83
• Revenue Growth: -0.61%
• EPS Growth: 15.06%
• Country: US
• Employees: 17,200
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Chemicals - Specialty
• EPS (TTM): 4.99
• Shares Outstanding: 128,422,520
• 10 Day Avg. Volume: 676,367
• 30 Day Avg. Volume: 808,783
• PEG Ratio: 1.47
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $115.91
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

RPM International's financial performance is strong, driven by operational efficiency and cash flow stability. However, technical indicators suggest bearish momentum, and the earnings call highlighted challenges such as weather impacts and foreign exchange issues. Valuation is reasonable but not particularly compelling, leading to a balanced overall score.

Positive Factors

Earnings Growth

The Margin Achievement Plans have resulted in above-market earnings growth and set the stage for the next plan.

Market Share

Recent results show RPM holding or gaining market share, and competitor trends were no better than RPM.

Negative Factors

Economic Slowdown

A likely slowdown in the US economy is expected to result in deferred capital spending by corporate and homeowner customers.

Weather Impact

Recent poor weather in the Southern U.S. may have an impact on RPM's performance.

RPM International Business Overview & Revenue Model

Company Description

RPM International Inc. is a multinational company specializing in the manufacturing and marketing of high-performance specialty coatings, sealants, and building materials. Headquartered in Medina, Ohio, RPM operates in various sectors including industrial, consumer, and specialty segments. Its core products and services include roofing systems, specialty coatings, sealants, and adhesives that serve diverse markets such as construction, industrial maintenance, automotive, and consumer goods.

How the Company Makes Money

RPM International makes money through the sale of its wide range of specialty coatings, sealants, and building materials across its three primary business segments: Industrial, Consumer, and Specialty. The Industrial segment generates revenue by providing coatings and sealants for industrial maintenance and construction applications. The Consumer segment focuses on products sold to home improvement and hardware retailers, including paints, stains, and sealants for DIY consumers. The Specialty segment caters to niche markets with unique product requirements, such as marine coatings and restoration services. RPM's revenue is further bolstered by its strategic acquisitions and partnerships, which expand its product offerings and market reach. The company also benefits from its global distribution network, enabling it to serve customers in various regions efficiently.

RPM International Financial Statement Overview

Summary

RPM International demonstrates solid financial health with strong profitability metrics and improving leverage. The company's strategic focus on operational efficiency has yielded better margins and cash flow stability. However, some historical leverage concerns persist, which slightly tempers the overall financial score.

Income Statement

RPM International shows strong gross profit and net profit margins, with the TTM figures indicating healthier profitability compared to previous years. Revenue growth has been moderate, but consistent, with a significant uptick in EBIT and EBITDA margins in the TTM period, showcasing improved operational efficiency. However, past fluctuations in EBIT margins suggest some volatility in operating performance.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM, indicating better leverage management, though it remains a point of concern due to prior high leverage. Return on Equity (ROE) has shown positive trends, reflecting efficient use of equity. The equity ratio is stable, suggesting a balanced capital structure, although historical high debt levels could pose risks under adverse market conditions.

Cash Flow

There is robust free cash flow growth in the TTM, driven by increased operating cash flows despite higher capital expenditures. The operating cash flow to net income ratio indicates strong cash generation relative to earnings. Consistent free cash flow to net income ratios reflect sustainable cash conversion efficiency, supporting financial flexibility and potential for future investments.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
7.34B	7.26B	6.71B	6.11B	5.51B
	Gross Profit
3.01B	2.75B	2.43B	2.41B	2.09B
	EBIT
885.16M	478.70K	656.62M	727.49M	532.14M
	EBITDA
1.08B	916.57M	809.69M	874.35M	688.98M
	Net Income Common Stockholders
588.40M	478.69M	491.48M	502.64M	304.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
237.38M	215.79M	201.67M	246.70M	233.42M
	Total Assets
6.59B	6.78B	6.71B	6.25B	5.63B
	Total Debt
2.47B	2.97B	2.95B	2.64B	2.78B
	Net Debt
2.24B	2.75B	2.75B	2.39B	2.55B
	Total Liabilities
4.07B	4.64B	4.72B	4.51B	4.37B
	Stockholders Equity
2.51B	2.14B	1.98B	1.74B	1.26B
Cash Flow		Free Cash Flow
908.34M	322.67M	-43.67M	608.96M	402.16M
	Operating Cash Flow
1.12B	577.11M	178.73M	766.16M	549.92M
	Investing Cash Flow
-206.44M	-249.70M	-259.55M	-326.39M	-209.61M
	Financing Cash Flow
-890.03M	-301.16M	57.39M	-459.62M	-316.87M

RPM International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 110.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPM, the sentiment is Neutral. The current price of 110.31 is above the 20-day moving average (MA) of 104.62, below the 50-day MA of 112.76, and below the 200-day MA of 120.96, indicating a neutral trend. The MACD of -1.90 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 76.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RPM.

RPM International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	75 Outperform	$7.25B	18.67	21.49%	―	1.77%	47.48%
RPM	69 Neutral	$14.17B	22.09	25.53%	1.85%	-0.61%	15.06%
EMN	68 Neutral	$9.00B	9.92	16.16%	4.30%	2.78%	1.50%
LYB	66 Neutral	$18.74B	18.03	7.19%	9.18%	-6.53%	-50.08%
PPG	62 Neutral	$25.08B	18.76	18.47%	2.47%	-7.67%	-0.58%
WLK	61 Neutral	$10.26B	17.22	5.76%	2.25%	-3.24%	24.29%
Sector *	49 Neutral	$1.95B	-1.37	-21.43%	3.74%	0.84%	-29.84%

RPM International Corporate Events

RPM International Strengthens Board with New Appointments

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.