RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
NYSE:RPM - New York Stock Exchange, Inc. - US7496851038 - Common Stock
RPM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making RPM a very profitable company, without any liquidiy or solvency issues. RPM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RPM had positive earnings in the past year.
RPM had a positive operating cash flow in the past year.
Each year in the past 5 years RPM has been profitable.
Each year in the past 5 years RPM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.73%, RPM belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
RPM's Return On Equity of 23.93% is amongst the best of the industry. RPM outperforms 95.18% of its industry peers.
RPM has a Return On Invested Capital of 12.74%. This is amongst the best in the industry. RPM outperforms 92.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RPM is above the industry average of 6.57%.
The last Return On Invested Capital (12.74%) for RPM is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 23.93% | ||
| ROIC | 12.74% |
ROA(3y)7.73%
ROA(5y)7.31%
ROE(3y)23.39%
ROE(5y)24.55%
ROIC(3y)11.4%
ROIC(5y)10.86%
1.3 Margins
RPM has a Profit Margin of 8.85%. This is in the better half of the industry: RPM outperforms 79.52% of its industry peers.
RPM's Profit Margin has improved in the last couple of years.
RPM has a better Operating Margin (12.58%) than 71.08% of its industry peers.
In the last couple of years the Operating Margin of RPM has grown nicely.
RPM's Gross Margin of 41.37% is amongst the best of the industry. RPM outperforms 83.13% of its industry peers.
RPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.58% | ||
| PM (TTM) | 8.85% | ||
| GM | 41.37% |
OM growth 3Y-0.18%
OM growth 5Y6.41%
PM growth 3Y-0.74%
PM growth 5Y10.89%
GM growth 3Y1.43%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RPM is still creating some value.
RPM has about the same amout of shares outstanding than it did 1 year ago.
RPM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RPM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.94 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM has a Altman-Z score of 4.94. This is amongst the best in the industry. RPM outperforms 93.98% of its industry peers.
RPM has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as RPM would need 3.09 years to pay back of all of its debts.
RPM has a better Debt to FCF ratio (3.09) than 86.75% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that RPM is somewhat dependend on debt financing.
RPM's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. RPM outperforms 49.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.49
WACC8.53%
2.3 Liquidity
RPM has a Current Ratio of 2.23. This indicates that RPM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RPM (2.23) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that RPM should not have too much problems paying its short term obligations.
RPM's Quick ratio of 1.46 is in line compared to the rest of the industry. RPM outperforms 56.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.69% over the past year.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
The Revenue for RPM has decreased by -21.43% in the past year. This is quite bad
RPM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.68% yearly.
EPS 1Y (TTM)15.69%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%13.93%
Revenue 1Y (TTM)-21.43%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%2.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y13.03%
EPS Next 2Y12.3%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue Next Year0.77%
Revenue Next 2Y2.22%
Revenue Next 3Y2.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.16 indicates a rather expensive valuation of RPM.
RPM's Price/Earnings is on the same level as the industry average.
RPM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.60, RPM is valued on the expensive side.
RPM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, RPM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
67.47% of the companies in the same industry are cheaper than RPM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 16.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RPM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)1.83
EPS Next 2Y12.3%
EPS Next 3Y11%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 1.61%.
RPM's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to the average S&P500 Dividend Yield of 2.28, RPM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of RPM has a limited annual growth rate of 5.62%.
RPM has paid a dividend for at least 10 years, which is a reliable track record.
RPM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.62%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
RPM pays out 37.39% of its income as dividend. This is a sustainable payout ratio.
RPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.39%
EPS Next 2Y12.3%
EPS Next 3Y11%
RPM INTERNATIONAL INC
NYSE:RPM (1/21/2025, 8:24:35 PM)
After market: 128.31 0 (0%)128.31
+1.79 (+1.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85%
Inst Owner Change0.24%
Ins Owners1.19%
Ins Owner Change-1.65%
Market Cap16.51B
Analysts68.57
Price Target137.82 (7.41%)
Short Float %1.23%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend1.8
Dividend Growth(5Y)5.62%
DP37.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.62%
Min EPS beat(2)2.92%
Max EPS beat(2)4.31%
EPS beat(4)3
Avg EPS beat(4)4.36%
Min EPS beat(4)-0.58%
Max EPS beat(4)10.8%
EPS beat(8)6
Avg EPS beat(8)5.44%
EPS beat(12)8
Avg EPS beat(12)6.22%
EPS beat(16)10
Avg EPS beat(16)6.41%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)2.12%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)7
Avg Revenue beat(12)8.66%
Revenue beat(16)10
Avg Revenue beat(16)7.23%
PT rev (1m)0.75%
PT rev (3m)9.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 20.6 | ||
| P/S | 2.25 | ||
| P/FCF | 25.15 | ||
| P/OCF | 18.72 | ||
| P/B | 6.08 | ||
| P/tB | 19.15 | ||
| EV/EBITDA | 16.35 |
EPS(TTM)5.31
EY4.14%
EPS(NY)6.23
Fwd EY4.86%
FCF(TTM)5.1
FCFY3.98%
OCF(TTM)6.85
OCFY5.34%
SpS57.07
BVpS21.1
TBVpS6.7
PEG (NY)1.85
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 23.93% | ||
| ROCE | 17.14% | ||
| ROIC | 12.74% | ||
| ROICexc | 13.41% | ||
| ROICexgc | 21.02% | ||
| OM | 12.58% | ||
| PM (TTM) | 8.85% | ||
| GM | 41.37% | ||
| FCFM | 8.94% |
ROA(3y)7.73%
ROA(5y)7.31%
ROE(3y)23.39%
ROE(5y)24.55%
ROIC(3y)11.4%
ROIC(5y)10.86%
ROICexc(3y)11.92%
ROICexc(5y)11.39%
ROICexgc(3y)19.49%
ROICexgc(5y)19.06%
ROCE(3y)15.33%
ROCE(5y)14.61%
ROICexcg growth 3Y1.72%
ROICexcg growth 5Y1.48%
ROICexc growth 3Y4.55%
ROICexc growth 5Y6.26%
OM growth 3Y-0.18%
OM growth 5Y6.41%
PM growth 3Y-0.74%
PM growth 5Y10.89%
GM growth 3Y1.43%
GM growth 5Y1.83%
F-Score6
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.09 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 125.35% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 8.96 | ||
| Cash Conversion | 79.93% | ||
| Profit Quality | 101.02% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 4.94 |
F-Score6
WACC8.53%
ROIC/WACC1.49
Cap/Depr(3y)144.81%
Cap/Depr(5y)127.14%
Cap/Sales(3y)3.25%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.69%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%13.93%
EPS Next Y13.03%
EPS Next 2Y12.3%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.43%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%2.96%
Revenue Next Year0.77%
Revenue Next 2Y2.22%
Revenue Next 3Y2.85%
Revenue Next 5YN/A
EBIT growth 1Y-17.73%
EBIT growth 3Y6.11%
EBIT growth 5Y12.46%
EBIT Next Year26.72%
EBIT Next 3Y14.1%
EBIT Next 5YN/A
FCF growth 1Y2811.11%
FCF growth 3Y14.26%
FCF growth 5Y42.22%
OCF growth 1Y319.52%
OCF growth 3Y13.57%
OCF growth 5Y30.82%