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RPM International (RPM)
:RPM
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RPM International
(NYSE:RPM)
Select Model
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Rating:71Outperform
Price Target:
$113.00
â–²(7.48% Upside)
RPM International's overall score reflects strong financial performance and positive strategic initiatives, tempered by bearish technical indicators and challenges in cash flow management. The company's strategic investments and leadership changes are promising, but current market conditions and profitability challenges warrant caution.
Positive Factors
Strong Revenue Growth
Consistent revenue growth across all segments indicates robust market demand and effective sales strategies, supporting long-term business expansion.
Leadership Changes
Strategic leadership changes are expected to drive operational efficiency and innovation, positioning the company for sustained growth and competitive advantage.
Healthy Balance Sheet
A strong balance sheet with low leverage and high liquidity provides financial stability, enabling strategic investments and resilience against economic fluctuations.
Negative Factors
Increased SG&A Expenses
Rising SG&A expenses can pressure profit margins, reducing overall profitability and potentially limiting resources for growth initiatives.
Challenges in Consumer Segment
Weak demand in the Consumer segment suggests potential market saturation or competitive pressures, which could hinder revenue growth in this area.
Manufacturing Inefficiencies
Manufacturing inefficiencies from plant consolidations can increase costs and disrupt operations, negatively affecting margins and operational efficiency.
RPM International (RPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.75B
Dividend Yield1.94%
Average Volume (3M)792.68K
Price to Earnings (P/E)20.0
Beta (1Y)0.77
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. Volume758,924
30 Day Avg. Volume792,678
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 Cap1.36
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda17.03
Forecast
1Y Price Target
$133.50Price Target Upside26.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RPM International Business Overview & Revenue Model
Company DescriptionRPM International Inc. is a multinational company specializing in the manufacture and marketing of high-performance coatings, sealants, and specialty chemicals. Headquartered in Medina, Ohio, RPM operates through various subsidiaries across sectors such as industrial, commercial, and consumer markets. The company’s core product offerings include paints, coatings, adhesives, and sealants, catering to a wide range of applications from construction and maintenance to home improvement and consumer goods.
How the Company Makes MoneyRPM International generates revenue primarily through the sale of its diverse range of products across various industries. The company operates through several segments, including the Industrial segment, which provides products for manufacturing and maintenance, the Consumer segment that focuses on DIY products, and the Specialty segment, which includes high-performance coatings and sealants for specific applications. Key revenue streams include direct sales to retail stores, distributors, and contractors, as well as e-commerce channels. Additionally, RPM benefits from strong brand recognition and customer loyalty, which are bolstered by strategic partnerships with retailers and contractors. The company also invests in innovation and product development, enabling it to capture new market opportunities and enhance its competitive edge.
RPM International Earnings Call Summary
Earnings Call Date:Oct 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 08, 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
Positive
105.14
Price Trends
108.16
Negative
114.89
Negative
112.90
Negative
Market Momentum
-0.69
Negative
50.89
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPM, the sentiment is Positive. The current price of 105.14 is above the 20-day moving average (MA) of 105.07, below the 50-day MA of 108.16, and below the 200-day MA of 112.90, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $13.75B | 20.02 | 24.05% | 1.94% | 3.09% | 12.25% | |
67 Neutral | $7.43B | 10.86 | 12.24% | 5.11% | -3.33% | -19.59% | |
67 Neutral | $23.23B | 18.48 | 16.31% | 2.68% | -12.98% | -11.34% | |
65 Neutral | $6.39B | 26.74 | 9.40% | 1.23% | 3.87% | -10.30% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $16.20B | -39.63 | -2.84% | 2.49% | -3.01% | 82.30% | |
52 Neutral | $9.54B | -9.92 | -9.48% | 2.87% | -5.32% | -1108.29% |
* Basic Materials Sector Average
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RPM International Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
RPM International Announces Leadership Changes for Growth
Positive
Oct 8, 2025
On October 2, 2025, RPM International announced significant leadership changes as part of a strategic reorganization to enhance operational efficiency. David C. Dennsteadt was elected as the Executive Vice President, overseeing corporate administrative functions, while Gregory Michael succeeded him as group president of the Performance Coatings Group. These changes are aimed at continuing RPM’s growth and success, with Dennsteadt bringing extensive experience in sales, earnings, and strategic vision. The reorganization reflects RPM’s commitment to innovation and operational excellence, positioning the company for future growth.
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.