RPM International (RPM): Revisiting Valuation as Shares Move Sideways and Long-Term Returns Hold

RPM International (RPM) shares have moved sideways lately, reflecting a quieter period for the company after recent results shaped investor sentiment. With RPM trading near $112, the focus now turns to longer-term growth trends and valuation.

See our latest analysis for RPM International.

After a challenging stretch, RPM International’s 1-year total shareholder return is down 12.1%, hinting at some fading momentum as investors weigh growth prospects against perceived risks. Over a longer horizon, shareholders have still enjoyed a 44.3% total return across five years. This highlights the rewards possible for patient investors, even as valuation remains a key discussion point now.

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With RPM’s shares now trading below analyst price targets and recent growth rates modest but positive, the question is whether the current valuation offers upside for new investors or if future gains are already reflected in the price.

Most Popular Narrative: 16% Undervalued

Compared to RPM’s last close at $112.32, the narrative's fair value estimate sits notably higher. This gap spotlights growing optimism about future earnings and margin expansion potential.

A deliberate focus on innovative, environmentally friendly products and entry into new cleaning categories (e.g., The Pink Stuff) positions RPM to capture market share and drive pricing power. As regulatory and market emphasis on sustainability continues to intensify, this is likely to support both revenue growth and net margin expansion.

Read the complete narrative.

Want to know what’s fueling this bullish outlook? The foundation is set by a blend of profit growth, expanding margins, and ambitious earnings targets. See what underlying forecasts make this fair value so compelling.

Result: Fair Value of $134.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent consumer weakness or higher input costs could threaten margins. This could make it harder for RPM to achieve the anticipated gains outlined by analysts.

Find out about the key risks to this RPM International narrative.

Build Your Own RPM International Narrative

If you see things differently or want to dive into the numbers for yourself, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your RPM International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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