RPM International (RPM) AI Stock Analysis

• Market Cap: $12.66B
• Dividend Yield: 1.96%
• Average Volume (3M): 906.93K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.78
• Revenue Growth: 3.09%
• EPS Growth: 12.25%
• Country: US
• Employees: 17,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 128,075,680
• 10 Day Avg. Volume: 944,280
• 30 Day Avg. Volume: 906,934
• PEG Ratio: 1.21
• Price to Book (P/B): 5.03
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 26.98
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 13.45
• 1Y Price Target: $127.70
• Price Target Upside: 29.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.27
• Revenue Forecast (FY): $7.75B

• Rating: 63 Neutral
• Price Target: $116.00 ▲(17.34% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

RPM scores in the low-to-mid 60s primarily due to solid underlying profitability and returns, but with meaningful offsets from leverage and inconsistent cash conversion. Technical indicators are notably weak (below key moving averages with negative MACD), tempering the near-term setup. Valuation and the dividend are supportive, while earnings-call commentary is balanced: constructive guidance and a clear cost-savings plan are countered by current margin/SG&A and demand headwinds.

Positive Factors

Durable Profitability & Margins

RPM’s healthy margins and consistently strong returns (TTM ROE ~23%) reflect pricing power and operational efficiency in specialty coatings. Those structural margins support resilience through mild demand cycles, enable reinvestment in R&D and M&A, and underpin sustainable earnings over the next several quarters.

Strong Cash Generation & Liquidity

Robust trailing operating cash flow and material free cash flow provide durable funding for debt reduction, dividends (52nd consecutive increase), and bolt-on acquisitions. This cash-generation capacity gives the company flexibility to weather cyclical weakness and pursue strategic investments over a multi-quarter horizon.

Strategic M&A & Product Expansion

Targeted acquisitions like Kalzip expand RPM’s engineered-solutions portfolio and European footprint, increasing exposure to higher-value building-envelope markets. Such M&A is strategic and accretive over time, diversifying revenue streams and supporting structural margin improvement as integrations complete.

Negative Factors

Meaningful Leverage

Leverage near 1x debt-to-equity constrains financial flexibility for a cyclical industrial. Elevated debt increases interest expense sensitivity and reduces headroom for large downturns or opportunistic investment, meaning refinancing, covenant compliance and deleveraging will remain a multi-quarter priority.

Inconsistent Cash Conversion

Volatile cash conversion driven by working-capital swings and integration timing makes free cash less predictable. That variability complicates capital-allocation planning for dividends, buybacks and acquisitions, and raises risk that cash-driven cushioning may underperform in weaker demand periods.

Margin Pressure from SG&A & Integration Costs

Elevated SG&A from growth investments, health-care inflation and transaction costs, plus temporary conversion and consolidation inefficiencies, are weighing on margins. These structural cost pressures mean margin recovery depends on successful SG&A optimization and smooth integration over several quarters.

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 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 Financial Statement Overview

Summary

Profitability is solid with healthy margins and strong ROE, supported by generally positive free cash flow. Offsetting this are moderate leverage and historically uneven cash-flow conversion (including a prior year with negative FCF), which raises risk in weaker demand environments.

Income Statement

RPM shows solid profitability and improving operating performance. In TTM (Trailing-Twelve-Months), gross margin is ~41% and net margin is ~8.8%, with operating margin around ~11.8%—healthy for a specialty chemicals profile. Revenue has been relatively steady across recent annual periods, while profits have expanded meaningfully versus FY2023–FY2024 levels. The main weakness is that the latest revenue growth signal looks unusually high versus the otherwise modest multi-year trend, suggesting potential volatility or a one-time uplift rather than consistent acceleration.

Balance Sheet

The balance sheet is workable but moderately leveraged. TTM (Trailing-Twelve-Months) debt is about $2.87B against equity of ~$3.13B (debt-to-equity ~0.92), improved from the higher leverage seen in FY2022–FY2023. Returns on equity remain strong (TTM ~23%), indicating effective use of capital. The key risk is that leverage is still meaningful for a cyclical/industrial-leaning business, and prior years show the company has operated with higher debt-to-equity, which can reduce flexibility if demand softens.

Cash Flow

Cash generation is positive but somewhat inconsistent year-to-year. TTM (Trailing-Twelve-Months) operating cash flow is ~$824M and free cash flow is ~$583M, with free cash flow running at ~71% of net income—reasonable quality of earnings. However, cash conversion has been volatile historically (including a year with negative free cash flow in FY2022), and operating cash flow as a share of sales remains modest, which suggests working-capital swings can materially impact cash results.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	7.58B	7.37B	7.34B	7.26B	6.71B	6.11B
Gross Profit	3.12B	3.05B	3.01B	2.75B	2.41B	2.41B
EBITDA	1.11B	1.08B	1.08B	923.35M	844.53M	897.32M
Net Income	666.60M	688.69M	588.40M	478.69M	491.48M	502.64M
Balance Sheet
Total Assets	7.87B	7.78B	6.59B	6.78B	6.71B	6.25B
Cash, Cash Equivalents and Short-Term Investments	316.59M	302.14M	237.38M	215.79M	201.67M	246.70M
Total Debt	2.87B	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	3.13B	2.89B	2.51B	2.14B	1.98B	1.74B
Cash Flow
Free Cash Flow	582.90M	538.26M	908.34M	322.67M	-43.67M	608.96M
Operating Cash Flow	823.89M	768.19M	1.12B	577.11M	178.73M	766.16M
Investing Cash Flow	-904.08M	-825.53M	-206.44M	-249.70M	-259.55M	-326.39M
Financing Cash Flow	110.52M	121.94M	-890.03M	-301.16M	57.39M	-459.62M

RPM International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 98.86 is below the 20-day moving average (MA) of 107.33, below the 50-day MA of 110.06, and below the 200-day MA of 112.00, indicating a bearish trend. The MACD of -3.57 indicates Positive momentum. The RSI at 26.63 is Positive, neither overbought nor oversold. The STOCH value of 14.42 is Positive, 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
ESI	70 Outperform	$7.70B	31.70	7.29%	1.25%	3.87%	-10.30%
EMN	68 Neutral	$7.86B	15.45	8.09%	5.33%	-3.33%	-19.59%
PPG	68 Neutral	$22.52B	14.71	33.60%	2.71%	-12.98%	-11.34%
RPM	63 Neutral	$12.66B	21.09	22.70%	1.96%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	57 Neutral	$17.45B	-46.13	-2.49%	2.41%	-3.01%	82.30%
WLK	55 Neutral	$14.40B	―	-15.50%	2.88%	-5.32%	-1108.29%

RPM International Corporate Events

RPM International Extends Revolving Credit Facility to 2031

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 and updating the interest rate framework for U.S. Dollar and foreign currency loans. The amendment sets interest based on base rate, term SOFR or related reference rates plus a spread tied to RPM’s debt rating, introduces a facility fee also linked to the rating, maintains leverage ratio covenants at a maximum of 3.75 to 1.0, removes the interest coverage ratio covenant, and preserves customary restrictions and default provisions, thereby refining the company’s capital structure and providing longer-term funding flexibility for its operations.

The most recent analyst rating on (RPM) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on RPM International stock, see the RPM Stock Forecast page.