RPM International (RPM)
NYSE:RPM
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RPM International
(NYSE:RPM)
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Rating:64Neutral
Price Target:
$114.00
â–²(3.82% Upside)
Action:DowngradedDate:04/24/26
The score is driven primarily by solid financial performance (strong profitability/ROE and improving leverage) and a constructive earnings outlook with cost-savings levers, but it is held back by very expensive valuation (high P/E), mixed technical trend signals, and near-term inflation/consumer-demand risks discussed on the call.
Positive Factors
Margin and ROE Strength
RPM’s consistently high gross margins and elevated ROE reflect durable operating leverage and pricing power in specialty coatings and systems. That structural margin advantage supports reinvestment, dividends and M&A capacity, and cushions earnings through modest demand cycles over the next several quarters.
Negative Factors
Raw-material Inflation & Geopolitical Risk
Escalating commodity costs driven by geopolitical disruption create a persistent margin headwind if pricing and procurement cannot fully offset increases. Given RPM’s global exposure, sustained mid-single-digit inflation could depress margins and cash generation across multiple quarters despite mitigation programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and ROE Strength
RPM’s consistently high gross margins and elevated ROE reflect durable operating leverage and pricing power in specialty coatings and systems. That structural margin advantage supports reinvestment, dividends and M&A capacity, and cushions earnings through modest demand cycles over the next several quarters.
Read all positive factors
RPM International (RPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.85B
Dividend Yield1.96%
Average Volume (3M)1.05M
Price to Earnings (P/E)70.6
Beta (1Y)0.78
Revenue Growth5.68%
EPS Growth3.81%
CountryUS
Employees17,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.57
Shares Outstanding127,626,526
10 Day Avg. Volume1,253,393
30 Day Avg. Volume1,049,584
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 Cap1.18
Enterprise Value/Revenue1.97
Enterprise Value/Gross Profit4.75
Enterprise Value/Ebitda14.05
Forecast
1Y Price Target
$128.00Price Target Upside16.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)5.41
Revenue Forecast (FY)$7.80B
RPM International Business Overview & Revenue Model
Company Description
RPM 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 foam...
How the Company Makes Money
RPM makes money primarily by selling specialty chemical products and building-material systems across its operating segments to customers in construction, maintenance, industrial, and consumer end markets. Revenue is generated from (1) product sal...
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 Earnings Call Summary
Earnings Call Date:Apr 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call communicated strong operational execution and several record financial metrics—nearly 9% sales growth, record adjusted EBIT and EPS, robust cash flow ($656.7M YTD), meaningful cost-savings programs (Green Belt, SG&A optimization) and strategic M&A (Kalzip). These positives are tempered by material near-term risks: geopolitical-driven raw material inflation (1%–2% in Q4 and mid/high-single digits expected in Q1), consumer DIY softness with consecutive quarterly organic declines, one-time optimization charges ($22.1M pretax) and temporary plant consolidation inefficiencies (~$6M). Management presented actionable mitigations (pricing, procurement contracts, liquidity, targeted SG&A savings) and reaffirmed guidance while acknowledging a wider-than-normal range due to uncertainty. Overall, the strength of record results, cash generation and tangible cost and procurement levers lead to a constructive outlook, but meaningful risks remain in the near term related to inflation and geopolitical volatility.Positive Updates
Record Financial Performance
Consolidated sales increased nearly 9% year-over-year to a record in Q3; adjusted EBIT and adjusted EPS were records (adjusted EBIT up nearly 50% driven by higher volumes, improved margins and operational improvements).
Negative Updates
Geopolitical Risk and Raw Material Inflation
Conflict in the Middle East has created supply disruptions and elevated raw material costs; management expects raw material inflation of ~1%–2% in Q4 fiscal '26 and mid- to high single-digit inflation in Q1 fiscal '27. Regions most affected (Middle East, Africa and Asia Pacific) represent ~4% of year-to-date revenues; Europe and South America (~20%) also seeing meaningful inflation pickup.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Financial Performance
Consolidated sales increased nearly 9% year-over-year to a record in Q3; adjusted EBIT and adjusted EPS were records (adjusted EBIT up nearly 50% driven by higher volumes, improved margins and operational improvements).
Read all positive updates
Company Guidance
RPM reaffirmed Q4 revenue guidance of mid‑single‑digit growth (aided by M&A) and reiterated adjusted EBIT guidance of low‑ to high‑single‑digit percentage growth versus record prior‑year results, while expecting raw‑material inflation of about 1–2% in Q4 FY26 rising to mid‑to‑high single digits in Q1 FY27; pricing was ~1% in Q3 and management expects pricing to be higher in Q4 and higher still in Q1 to help offset inflation, SG&A‑optimization actions are expected to provide roughly $20 million of favorable P&L benefit in Q4 (with about $75 million of MAP/SG&A savings targeted for FY27), and the company noted robust liquidity (~$1.02 billion) and a $1.35 billion revolver extended to February 2031.RPM International Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.71B | 7.37B | 7.34B | 7.26B | 6.71B | 6.11B |
| Gross Profit | 3.19B | 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 | 665.93M | 688.69M | 588.40M | 478.69M | 491.48M | 502.64M |
Balance Sheet | ||||||
| Total Assets | 7.88B | 7.78B | 6.59B | 6.78B | 6.71B | 6.25B |
| Cash, Cash Equivalents and Short-Term Investments | 294.21M | 302.14M | 237.38M | 215.79M | 201.67M | 246.70M |
| Total Debt | 2.56B | 2.96B | 2.41B | 2.97B | 2.95B | 2.64B |
| Total Liabilities | 4.74B | 4.89B | 4.07B | 4.64B | 4.72B | 4.51B |
| Stockholders Equity | 3.15B | 2.89B | 2.51B | 2.14B | 1.98B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 575.21M | 538.26M | 908.34M | 322.67M | -43.67M | 608.96M |
| Operating Cash Flow | 805.85M | 768.19M | 1.12B | 577.11M | 178.73M | 766.16M |
| Investing Cash Flow | -833.52M | -825.53M | -206.44M | -249.70M | -259.55M | -326.39M |
| Financing Cash Flow | 50.10M | 121.94M | -890.03M | -301.16M | 57.39M | -459.62M |
RPM International Technical Analysis
Positive
109.81
Price Trends
106.34
Positive
106.34
Positive
110.56
Negative
Market Momentum
1.35
Negative
61.26
Neutral
65.35
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 109.81 is above the 20-day moving average (MA) of 101.48, above the 50-day MA of 106.34, and below the 200-day MA of 110.56, indicating a neutral trend. The MACD of 1.35 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 65.35 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.05B | 15.45 | 8.09% | 5.33% | -6.52% | -46.84% | |
66 Neutral | $10.37B | 37.13 | 7.29% | 1.25% | 13.00% | -48.06% | |
65 Neutral | $23.43B | 15.65 | 75.08% | 2.71% | -3.94% | 18.25% | |
64 Neutral | $12.85B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $17.60B | -46.13 | -2.49% | 2.41% | -5.17% | -242.69% | |
52 Neutral | $14.27B | -6.32 | -15.50% | 2.88% | -8.01% | -351.54% |
* Basic Materials Sector Average
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RPM International Corporate Events
Business Operations and StrategyExecutive/Board Changes
RPM International Adds Gentile to Board for Growth
Positive
Apr 23, 2026
On April 20, 2026, RPM International Inc. appointed Thomas C. Gentile, III to its board of directors, effective immediately, expanding the board to 13 members. Gentile will also serve on the board’s compensation committee, with director comp...
Business Operations and StrategyPrivate Placements and Financing
RPM International Extends Revolving Credit Facility to 2031
Positive
Mar 5, 2026
On February 27, 2026, RPM International Inc. and certain subsidiaries amended their revolving credit facility by entering into a Seventh Amendment to their Credit Agreement, extending the facility’s term by five years to February 27, 2031 an...
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.