RPM International (RPM) AI Stock Analysis

• Market Cap: $15.78B
• Dividend Yield: 1.64%
• Average Volume (3M): 646.52K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.83
• Revenue Growth: 0.51%
• EPS Growth: 17.21%
• Country: US
• Employees: 17,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.72
• Shares Outstanding: 128,292,370
• 10 Day Avg. Volume: 654,474
• 30 Day Avg. Volume: 646,518
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 5.67
• Enterprise Value/Ebitda: 15.96
• 1Y Price Target: $133.77
• Price Target Upside: 7.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $140.00 ▲(12.85% Upside)

RPM International's strong financial performance and positive earnings call outlook are the most significant factors driving the score. The company's effective cost management and strategic initiatives position it well for future growth. Technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. Valuation is reasonable, but not particularly attractive. Overall, RPM is well-positioned within the Chemicals - Specialty industry, with robust growth prospects despite some external challenges.

Positive Factors

Revenue Growth

Consistent record-breaking sales and earnings indicate strong demand and effective business strategies, supporting long-term growth.

Margin Improvement

Improved margins reflect efficient cost management and pricing strategies, enhancing profitability and competitive positioning.

Strategic Acquisitions

Significant acquisitions expand RPM's product offerings and market reach, driving future growth and strengthening market position.

Negative Factors

Consumer Segment Challenges

Declining sales in the Consumer segment indicate potential market saturation or shifting consumer preferences, impacting revenue.

Inflation and Tariff Pressures

Inflation and tariffs increase costs, potentially squeezing margins and requiring price adjustments, affecting competitiveness.

Customer Bankruptcy Impact

Bad debt from customer bankruptcy highlights credit risk and can affect financial stability and cash flow management.

RPM International Business Overview & Revenue Model

Company Description

RPM International Inc. is a multinational company specializing in specialty coatings, sealants, and building materials. Founded in 1947 and headquartered in Medina, Ohio, RPM operates through several segments, including Consumer Products, Construction Products, and Specialty Products. The company offers a diverse range of products including paints, adhesives, and waterproofing solutions, catering to both professional trades and consumers across various markets such as industrial, commercial, and residential sectors.

How the Company Makes Money

RPM 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 Financial Statement Overview

Summary

RPM International shows strong financial performance with consistent revenue and profit growth, effective cost management, and stable profitability margins. The balance sheet's improving equity base and leverage management indicate financial stability, while strong operating cash flows denote efficient cash management. Despite some leverage concerns and free cash flow fluctuations, the company's financial health remains robust.

Income Statement

RPM International has demonstrated strong revenue growth over the years, with a consistent increase in total revenue from $5.51 billion in 2020 to $7.37 billion in 2025. Gross profit margin has been stable, indicating effective cost control, while net profit margin improved significantly in 2025 to 9.34%. The EBIT and EBITDA margins show consistent profitability, further supporting a strong income statement performance.

Balance Sheet

The balance sheet indicates an improving financial structure with increasing stockholders' equity, which rose to $2.89 billion in 2025. The debt-to-equity ratio has improved, showing better leverage management. The equity ratio has also improved, suggesting a stronger asset base relative to liabilities. However, the company still carries a notable level of debt which could pose potential risks.

Cash Flow

RPM's cash flow statement shows robust operating cash flow, which has been consistently positive, peaking at $1.12 billion in 2024. Free cash flow has also shown growth, although it saw a decline in 2025 compared to 2024. Operating cash flow to net income ratio indicates effective cash conversion from earnings, although some fluctuations in free cash flow growth suggest potential investment and financing adjustments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.37B	7.37B	7.34B	7.26B	6.71B	6.11B
Gross Profit	3.05B	3.05B	3.01B	2.75B	2.41B	2.41B
EBITDA	1.08B	1.08B	1.08B	923.35M	844.53M	897.32M
Net Income	688.69M	688.69M	588.40M	478.69M	491.48M	502.64M
Balance Sheet
Total Assets	7.78B	7.78B	6.59B	6.78B	6.71B	6.25B
Cash, Cash Equivalents and Short-Term Investments	302.14M	302.14M	237.38M	215.79M	201.67M	246.70M
Total Debt	2.96B	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	2.89B	2.89B	2.51B	2.14B	1.98B	1.74B
Cash Flow
Free Cash Flow	538.26M	538.26M	908.34M	322.67M	-43.67M	608.96M
Operating Cash Flow	768.19M	768.19M	1.12B	577.11M	178.73M	766.16M
Investing Cash Flow	-825.53M	-825.53M	-206.44M	-249.70M	-259.55M	-326.39M
Financing Cash Flow	121.94M	121.94M	-890.03M	-301.16M	57.39M	-459.62M

RPM International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 124.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 124.06 is below the 20-day moving average (MA) of 125.40, above the 50-day MA of 121.04, and above the 200-day MA of 117.87, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.19 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
RPM	78 Outperform	$15.78B	23.43	25.42%	1.64%	0.51%	17.21%
AXTA	74 Outperform	6.61B	15.08	19.69%	―	-1.01%	50.58%
EMN	70 Neutral	7.58B	9.27	14.26%	5.00%	1.60%	-3.97%
PPG	63 Neutral	24.40B	19.17	13.34%	2.52%	-10.59%	-7.79%
LYB	55 Neutral	17.21B	70.21	2.19%	10.29%	-14.12%	-89.22%
WLK	52 Neutral	11.15B	-160.36	-0.64%	2.48%	-3.00%	-124.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.