RPM International (RPM) AI Stock Analysis

• Market Cap: $14.00B
• Dividend Yield: 1.87%
• Average Volume (3M): 802.73K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.84
• Revenue Growth: -0.61%
• EPS Growth: 15.06%
• Country: US
• Employees: 17,200
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.35
• Shares Outstanding: 128,422,520
• 10 Day Avg. Volume: 963,851
• 30 Day Avg. Volume: 802,731
• PEG Ratio: -5.72
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.26
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 3.68
• 1Y Price Target: $119.08
• Price Target Upside: 8.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $116.00 ▲(6.00%Upside)

RPM International's overall stock score is driven primarily by solid financial performance and a stable valuation. Despite the strong cash flow and operational improvements, technical indicators reflect bearish momentum, while recent earnings highlighted challenges such as weather impacts and production inefficiencies. The mix of positive long-term financial trends and short-term operational challenges results in a moderate score.

Positive Factors

Market Share and Competition

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

Profitability and Savings

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

Negative Factors

Economic Outlook

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

Financial Performance

RPM posted lower-than-expected earnings per share, driven by lower sales from unfavorable weather conditions, sluggish demand, and FX headwinds.

Raw Material Costs

RPM's raw material inflation from tariffs is partly offset by pricing, but this could be challenging in an expected softer demand environment.

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 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 Money

RPM International makes money through the manufacturing and sale of its diverse range of chemical products across its four business segments. The Consumer Group primarily generates revenue through the sale of branded consumer products like paints, coatings, and sealants, which are distributed through retail channels. The Construction Products Group focuses on high-performance building materials and generates income from sales to contractors and construction professionals. The Performance Coatings Group earns revenue from industrial applications, providing protective coatings and corrosion control solutions. Lastly, the Specialty Products Group brings in revenue through niche markets, offering unique chemical formulations and services. RPM's earnings are further supported by strategic partnerships and acquisitions that expand its product portfolio and market reach.

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, positioning it well within the Chemicals - Specialty industry. While some historical leverage concerns persist, the recent positive trends in cash flow and equity management indicate a promising outlook for sustained financial performance.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	7.30B	7.34B	7.26B	6.71B	6.11B	5.51B
Gross Profit	3.00B	3.01B	2.75B	2.43B	2.41B	2.09B
EBITDA	1.07B	1.08B	916.57M	809.69M	874.35M	688.98M
Net Income	643.54M	588.40M	478.69M	491.48M	502.64M	304.38M
Balance Sheet
Total Assets	6.62B	6.59B	6.78B	6.71B	6.25B	5.63B
Cash, Cash Equivalents and Short-Term Investments	241.90M	237.38M	215.79M	201.67M	246.70M	233.42M
Total Debt	2.39B	2.47B	2.97B	2.95B	2.64B	2.78B
Total Liabilities	3.94B	4.07B	4.64B	4.72B	4.51B	4.37B
Stockholders Equity	2.67B	2.51B	2.14B	1.98B	1.74B	1.26B
Cash Flow
Free Cash Flow	565.37M	908.34M	322.67M	-43.67M	608.96M	402.16M
Operating Cash Flow	800.17M	1.12B	577.11M	178.73M	766.16M	549.92M
Investing Cash Flow	-358.24M	-206.44M	-249.70M	-259.55M	-326.39M	-209.61M
Financing Cash Flow	-433.41M	-890.03M	-301.16M	57.39M	-459.62M	-316.87M

RPM International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 109.43 is below the 20-day moving average (MA) of 111.90, below the 50-day MA of 110.39, and below the 200-day MA of 120.63, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPM.

RPM International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	77 Outperform	$6.48B	14.64	23.59%	―	0.96%	82.78%
EMN	68 Neutral	$8.79B	9.66	16.16%	4.38%	2.78%	1.50%
LYB	67 Neutral	$18.47B	17.78	7.19%	9.53%	-6.53%	-50.08%
RPM	64 Neutral	$14.00B	21.83	25.53%	1.87%	-0.61%	15.06%
PPG	64 Neutral	$25.71B	19.18	18.47%	2.40%	-7.67%	-0.58%
Sector *	62 Neutral	$9.84B	9.25	-0.43%	3.02%	2.17%	-35.02%
WLK	60 Neutral	$9.61B	25.19	3.71%	2.80%	-1.27%	48.34%

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.