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RPM International (RPM)
NYSE:RPM
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RPM International (RPM) AI Stock Analysis

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RPM

RPM International

(NYSE:RPM)

Rating:78Outperform
Price Target:
$140.00
▲(11.53% 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
Cost Savings
Management expects to see an additional $70mm of savings flow through the P&L during F2026, including plant closures and streamlining efforts.
Earnings Growth
RPM's execution on its MAP 25 plan, differentiated business model, and M&A continues to propel its EPS and stock higher.
Strategic Acquisitions
RPM has improved its cash flow profile and is reengaging the M&A market, which is expected to drive better value creation and return metrics.
Negative Factors
Interest Expense
There is a partial offset from higher interest expense due to increased gross debt from recent M&A.
Macroeconomic Concerns
The underperform thesis was predicated on fears of a slowing macro environment and a pullback of industrial capital investment due to new government tariffs.

RPM International (RPM) vs. SPDR S&P 500 ETF (SPY)

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:Jul 24, 2025
(Q4-2025)
|
% Change Since: 11.14%|
Next Earnings Date:Oct 01, 2025
Earnings Call Sentiment Positive
The earnings call indicated strong financial performance with record-breaking results driven by operational improvements and strategic acquisitions. However, RPM faces challenges with cost inefficiencies, DIY market softness, and economic uncertainty in specific regions. Despite these challenges, the company shows optimism for continued growth and efficiency improvements.
Q4-2025 Updates
Positive Updates
Record Q4 and Annual Financial Performance
RPM achieved record levels in Q4 sales, adjusted EBIT, and adjusted EPS, driven by high-performance building systems and MAP 2025 initiatives. This marks record adjusted EBIT in 13 of the last 14 quarters.
Significant Margin Expansion
Gross margins nearly reached a 42% goal, with adjusted EBIT margin expanding by 260 basis points and working capital efficiency improving by 320 basis points since the fiscal year 2022.
Largest M&A Year in Company History
Completed the largest year of acquisitions in RPM's history, with continued strong balance sheet metrics and liquidity of $969.1 million.
Strong Cash Flow and Shareholder Returns
Operating cash flow for fiscal 2025 was $768.2 million, the second highest in company history. Cash returns to shareholders via dividends and share repurchases increased by 13.5%.
New Operating Structure for Growth
Reorganized into three segments for better operational efficiency and synergy realization, expected to drive future growth and improved collaboration.
Negative Updates
Temporary Cost Inefficiencies
Faced temporary inefficiencies due to plant consolidations and raw material inflation, particularly in metal packaging.
DIY Consumer Market Weakness
Continued softness in the DIY market impacted sales, as seen in modest declines in the Consumer Group, exacerbated by SKU rationalization.
Economic Uncertainty in Emerging Markets
Sales were mixed in emerging markets, with declines in Asia due to soft economic conditions.
Headwinds from Tariffs and Inflation
Anticipated 4-5% negative impact from tariffs in fiscal 2026, with inflation pressures in packaging and propellants affecting consumer business.
Company Guidance
During the RPM International Fiscal Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, the company reported record fourth-quarter sales, adjusted EBIT, and adjusted EPS, driven by systems and turnkey solutions for high-performance buildings and a focus on maintenance and repair. RPM's MAP 2025 initiative contributed significantly, resulting in a 260 basis point increase in adjusted EBIT margin and a 320 basis point improvement in working capital as a percentage of sales compared to the fiscal year 2022 baseline. The Construction Products Group and Performance Coatings Group led with the largest EBIT growth, while three out of four segments achieved record Q4 adjusted EBIT. RPM generated record annual sales, adjusted EBIT, and adjusted EPS for each year since the MAP 2025 program began. Looking ahead to fiscal 2026, RPM expects low to mid-single-digit sales growth and high single to low double-digit adjusted EBIT growth, supported by MAP 2025 carryovers, recent acquisitions, and a strategic shift to a three-segment operating structure to enhance collaboration and efficiency.

RPM International Financial Statement Overview

Summary
RPM International shows strong financial performance with consistent revenue and profit growth, effective cost management, and strong operating cash flows. While the balance sheet indicates improving leverage management, there remain some concerns about debt levels and free cash flow fluctuations.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.37B7.37B7.34B7.26B6.71B6.11B
Gross Profit3.05B3.05B3.01B2.75B2.43B2.41B
EBITDA1.03B1.08B1.08B923.35M847.80M900.70M
Net Income688.69M688.69M588.40M478.69M491.48M502.64M
Balance Sheet
Total Assets7.78B7.78B6.59B6.78B6.71B6.25B
Cash, Cash Equivalents and Short-Term Investments302.14M302.14M237.38M215.79M201.67M246.70M
Total Debt2.96B2.96B2.41B2.97B2.95B2.64B
Total Liabilities4.89B4.89B4.07B4.64B4.72B4.51B
Stockholders Equity2.89B2.89B2.51B2.14B1.98B1.74B
Cash Flow
Free Cash Flow538.26M538.26M908.34M322.67M-43.67M608.96M
Operating Cash Flow768.19M768.19M1.12B577.11M178.73M766.16M
Investing Cash Flow-825.53M-825.53M-206.44M-249.70M-259.55M-326.39M
Financing Cash Flow121.94M121.94M-890.03M-301.16M57.39M-459.62M

RPM International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price125.53
Price Trends
50DMA
116.07
Positive
100DMA
112.70
Positive
200DMA
118.61
Positive
Market Momentum
MACD
2.75
Negative
RSI
61.73
Neutral
STOCH
60.59
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 125.53 is above the 20-day moving average (MA) of 122.08, above the 50-day MA of 116.07, and above the 200-day MA of 118.61, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.59 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$16.13B23.8425.42%1.62%0.51%17.21%
74
Outperform
$6.79B15.4022.09%-1.01%50.58%
65
Neutral
$7.86B9.7614.52%4.83%1.60%-3.97%
63
Neutral
$25.31B20.2616.88%2.45%-10.59%-7.79%
61
Neutral
$10.31B6.160.75%2.94%3.30%-36.34%
61
Neutral
$18.35B77.101.08%9.50%-14.12%-89.22%
54
Neutral
$11.05B25.36-0.64%2.41%-3.00%-124.79%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RPM
RPM International
125.53
13.73
12.28%
EMN
Eastman Chemical
68.29
-28.22
-29.24%
LYB
LyondellBasell
56.60
-33.44
-37.14%
PPG
PPG Industries
112.57
-12.03
-9.65%
WLK
Westlake Corporation
86.18
-54.91
-38.92%
AXTA
Axalta Coating Systems
31.45
-4.08
-11.48%

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.Date of analysis: Aug 18, 2025