RPM INTERNATIONAL INC (RPM)
US7496851038 - Common Stock
Overall RPM gets a fundamental rating of 6 out of 10. We evaluated RPM against 83 industry peers in the Chemicals industry. RPM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past 5 years RPM has always been profitable.
RPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.22%, RPM belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
With an excellent Return On Equity value of 30.67%, RPM belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.57%, RPM belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
RPM had an Average Return On Invested Capital over the past 3 years of 11.40%. This is above the industry average of 7.24%.
The last Return On Invested Capital (16.57%) for RPM is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 30.67% | ||
| ROIC | 16.57% |
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 better Profit Margin (8.73%) than 78.31% of its industry peers.
In the last couple of years the Profit Margin of RPM has grown nicely.
The Operating Margin of RPM (12.85%) is better than 73.49% of its industry peers.
RPM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 41.39%, RPM belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
RPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.85% | ||
| PM (TTM) | 8.73% | ||
| GM | 41.39% |
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 well above the Cost of Capital (WACC), so RPM is creating 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.
Compared to 1 year ago, RPM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.32 indicates that RPM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.32, RPM belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
RPM has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as RPM would need 2.57 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.57, RPM belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
RPM has a Debt/Equity ratio of 0.77. This is a neutral value indicating RPM is somewhat dependend on debt financing.
RPM has a Debt to Equity ratio of 0.77. This is comparable to the rest of the industry: RPM outperforms 49.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.95
WACC8.48%
2.3 Liquidity
A Current Ratio of 2.26 indicates that RPM has no problem at all paying its short term obligations.
RPM has a Current ratio of 2.26. This is comparable to the rest of the industry: RPM outperforms 50.60% of its industry peers.
RPM has a Quick Ratio of 1.48. This is a normal value and indicates that RPM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.48, RPM perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
RPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.99%, which is quite good.
Measured over the past years, RPM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
Looking at the last year, RPM shows a small growth in Revenue. The Revenue has grown by 0.39% in the last year.
Measured over the past years, RPM shows a small growth in Revenue. The Revenue has been growing by 5.68% on average per year.
EPS 1Y (TTM)14.99%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%12.2%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%-2.14%
3.2 Future
RPM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.64% yearly.
RPM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y13.03%
EPS Next 2Y12.3%
EPS Next 3Y10.64%
EPS Next 5YN/A
Revenue Next Year1.03%
Revenue Next 2Y2.41%
Revenue Next 3Y2.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.38, RPM is valued on the expensive side.
RPM's Price/Earnings ratio is in line with the industry average.
RPM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 20.11 indicates a rather expensive valuation of RPM.
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 22.83, RPM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RPM.
Based on the Price/Free Cash Flow ratio, RPM is valued a bit cheaper than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.19 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RPM may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.85
EPS Next 2Y12.3%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.14, RPM has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.24, RPM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 29.13% of its income as dividend. This is a sustainable payout ratio.
The dividend of RPM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.13%
EPS Next 2Y12.3%
EPS Next 3Y10.64%
RPM INTERNATIONAL INC
NYSE:RPM (12/20/2024, 8:04:00 PM)
After market: 125.29 0 (0%)125.29
-0.11 (-0.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner Change-2.61%
Ins Owners1.93%
Ins Owner Change-0.02%
Market Cap16.12B
Analysts68.57
Price Target136.81 (9.19%)
Short Float %1.04%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)5.62%
DP29.13%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.87%
Min EPS beat(2)-0.58%
Max EPS beat(2)4.31%
EPS beat(4)2
Avg EPS beat(4)3.34%
Min EPS beat(4)-1.18%
Max EPS beat(4)10.8%
EPS beat(8)5
Avg EPS beat(8)4.92%
EPS beat(12)7
Avg EPS beat(12)5.51%
EPS beat(16)10
Avg EPS beat(16)6.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.65%
Revenue beat(8)4
Avg Revenue beat(8)12.47%
Revenue beat(12)7
Avg Revenue beat(12)8.9%
Revenue beat(16)10
Avg Revenue beat(16)7.18%
PT rev (1m)1.73%
PT rev (3m)8.87%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-29.99%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.11 | ||
| P/S | 1.73 | ||
| P/FCF | 20.19 | ||
| P/OCF | 15.95 | ||
| P/B | 6.09 | ||
| P/tB | 19.45 | ||
| EV/EBITDA | 13.11 |
EPS(TTM)5.14
EY4.1%
EPS(NY)6.23
Fwd EY4.97%
FCF(TTM)6.21
FCFY4.95%
OCF(TTM)7.86
OCFY6.27%
SpS72.29
BVpS20.59
TBVpS6.44
PEG (NY)1.87
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 30.67% | ||
| ROCE | 22.28% | ||
| ROIC | 16.57% | ||
| ROICexc | 17.31% | ||
| ROICexgc | 26.82% | ||
| OM | 12.85% | ||
| PM (TTM) | 8.73% | ||
| GM | 41.39% | ||
| FCFM | 8.58% |
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-Score8
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 122.21% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 10.85 | ||
| Cash Conversion | 73.82% | ||
| Profit Quality | 98.29% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 5.32 |
F-Score8
WACC8.48%
ROIC/WACC1.95
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)14.99%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%12.2%
EPS Next Y13.03%
EPS Next 2Y12.3%
EPS Next 3Y10.64%
EPS Next 5YN/A
Revenue 1Y (TTM)0.39%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%-2.14%
Revenue Next Year1.03%
Revenue Next 2Y2.41%
Revenue Next 3Y2.76%
Revenue Next 5YN/A
EBIT growth 1Y11.27%
EBIT growth 3Y6.11%
EBIT growth 5Y12.46%
EBIT Next Year27.14%
EBIT Next 3Y13.29%
EBIT Next 5YN/A
FCF growth 1Y881.95%
FCF growth 3Y14.26%
FCF growth 5Y42.22%
OCF growth 1Y701.32%
OCF growth 3Y13.57%
OCF growth 5Y30.82%