NYSE:RPM

Stock Analysis Report

Executive Summary

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide.

Snowflake

Fundamentals

Established dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

How has RPM International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

NYSE:RPM

-0.07%

US Chemicals

0.9%

US Market


1 Year Return

2.2%

NYSE:RPM

-15.3%

US Chemicals

0.3%

US Market

RPM outperformed the Chemicals industry which returned -15.3% over the past year.

RPM outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

RPMIndustryMarket
7 Day-1.9%-0.07%0.9%
30 Day7.5%-3.4%-1.9%
90 Day20.6%-1.4%1.6%
1 Year4.6%2.2%-1.9%-15.3%2.6%0.3%
3 Year30.9%21.9%35.3%10.4%41.0%31.8%
5 Year59.7%41.9%31.3%2.7%55.2%38.0%

Price Volatility Vs. Market

How volatile is RPM International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RPM International undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

RPM International's share price is below the future cash flow value, and at a moderate discount (> 20%).

RPM International's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

RPM International is overvalued based on earnings compared to the US Chemicals industry average.

RPM International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

RPM International is poor value based on expected growth next year.


Price Based on Value of Assets

RPM International is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is RPM International expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RPM International's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

RPM International's earnings are expected to grow significantly at over 20% yearly.

RPM International's revenue growth is positive but not above the United States of America market average.

RPM International's earnings growth is expected to exceed the United States of America market average.

RPM International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

RPM International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has RPM International performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

RPM International's year on year earnings growth rate has been positive over the past 5 years.

RPM International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

RPM International's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

RPM International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RPM International used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

RPM International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RPM International's financial position?


Financial Position Analysis

RPM International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

RPM International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

RPM International's level of debt (179.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (86.8% vs 179.3% today).

Debt is not well covered by operating cash flow (11.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

What is RPM International's current dividend yield, its reliability and sustainability?

2.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

RPM International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

RPM International's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of RPM International's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average management tenure


CEO

Frank Sullivan (58yo)

16.8yrs

Tenure

US$5,076,910

Compensation

Mr. Frank C. Sullivan has been the Chief Executive Officer and President of RPM International Inc. since October 11, 2002 and August 1999 respectively. He served as Chief Operating Officer of RPM Internati ...


CEO Compensation Analysis

Frank's remuneration is about average for companies of similar size in United States of America.

Frank's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.6yrs

Average Tenure

55yo

Average Age

The average tenure for the RPM International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.1yrs

Average Tenure

63.5yo

Average Age

The tenure for the RPM International board of directors is about average.


Insider Trading

RPM International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$73,19426 Jul 19
Frederick Nance
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceUS$66.54
BuyUS$100,02218 Oct 18
John Ballbach
EntityIndividual
Shares1,680
Max PriceUS$59.54
BuyUS$120,41909 Oct 18
Kirkland Andrews
EntityIndividual
Shares2,000
Max PriceUS$60.21

Ownership Breakdown


Management Team

  • Frank Sullivan (58yo)

    Chairman

    • Tenure: 16.8yrs
    • Compensation: US$5.08m
  • Keith Smiley (57yo)

    VP of Finance & Controller

    • Tenure: 7.3yrs
  • Thomas Sullivan (55yo)

    Vice President of Corporate Development

    • Tenure: 11.8yrs
  • Lonny DiRusso (54yo)

    VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Michael Matchinga

    Director of Human Resource Information Systems

    • Tenure: 0.0yrs
  • Edward Moore (62yo)

    Senior VP

    • Tenure: 12.6yrs
    • Compensation: US$1.42m
  • Janeen Kastner (52yo)

    Vice President of Corporate Benefits & Risk Management

    • Tenure: 11.8yrs
    • Compensation: US$1.13m
  • Russell Gordon (53yo)

    VP & CFO

    • Tenure: 7.3yrs
    • Compensation: US$1.69m
  • Kathie Rogers

    Manager of Investor Relations

    • Tenure: 0.0yrs
  • Michael Sullivan

    VP of Operations & Chief Restructuring Officer

    • Tenure: 0.2yrs

Board Members

  • Bruce Carbonari (63yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$221.01k
  • David Daberko (74yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$218.51k
  • Tom Gross (64yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$201.01k
  • Sal Fazzolari (66yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$223.51k
  • Frank Sullivan (58yo)

    Chairman

    • Tenure: 16.8yrs
    • Compensation: US$5.08m
  • Stephen Knoop (54yo)

    Chairman of SPHC and Chief Executive Officer of SPHC

    • Tenure: 0.0yrs
    • Compensation: US$1.61m
  • William Summers (68yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$201.01k
  • Fred Nance (65yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$203.51k
  • Jenniffer Deckard (53yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$201.01k
  • Julie Lagacy (52yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$201.01k

Company Information

RPM International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RPM International Inc.
  • Ticker: RPM
  • Exchange: NYSE
  • Founded: 1947
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$8.682b
  • Shares outstanding: 129.68m
  • Website: https://www.rpminc.com

Number of Employees


Location

  • RPM International Inc.
  • 2628 Pearl Road
  • PO Box 777
  • Medina
  • Ohio
  • 44258
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPMNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
RP8DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:48
End of Day Share Price2019/08/20 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.