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 proven track record.


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

3.2%

RPM

0.08%

US Chemicals

1.0%

US Market


1 Year Return

16.8%

RPM

-5.6%

US Chemicals

8.0%

US Market

Return vs Industry: RPM exceeded the US Chemicals industry which returned -5.6% over the past year.

Return vs Market: RPM exceeded the US Market which returned 8% over the past year.


Shareholder returns

RPMIndustryMarket
7 Day3.2%0.08%1.0%
30 Day2.3%-2.2%-0.07%
90 Day6.4%-4.3%-1.0%
1 Year19.5%16.8%8.7%-5.6%10.4%8.0%
3 Year54.0%43.6%38.4%12.1%46.2%36.7%
5 Year81.5%61.5%44.2%11.8%64.3%46.2%

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 compared to its fair value and its price relative to the market?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPM ($70.02) is trading below our estimate of fair value ($72.7)

Significantly Below Fair Value: RPM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RPM is poor value based on its PE Ratio (30.2x) compared to the Chemicals industry average (19.3x).

PE vs Market: RPM is poor value based on its PE Ratio (30.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: RPM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: RPM is overvalued based on its PB Ratio (6.8x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is RPM International forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPM's forecast earnings growth (19.8% per year) is above the savings rate (2.7%).

Earnings vs Market: RPM's earnings (19.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: RPM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RPM's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RPM's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RPM's Return on Equity is forecast to be high in 3 years time (36.8%)


Next Steps

Past Performance

How has RPM International performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RPM's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: RPM's earnings growth over the past year (4.5%) exceeds its 5-year average (1.2% per year).

Earnings vs Industry: RPM earnings growth over the past year (4.5%) exceeded the Chemicals industry -2.9%.


Return on Equity

High ROE: Whilst RPM's Return on Equity (22.58%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: RPM has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: RPM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is RPM International's financial position?


Financial Position Analysis

Short Term Liabilities: RPM's short term assets ($2.4B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: RPM's short term assets (2.4B) do not cover its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: RPM's debt to equity ratio (193.2%) is considered high

Reducing Debt: RPM's debt to equity ratio has increased from 91.2% to 193.2% over the past 5 years.

Debt Coverage: RPM's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: RPM's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: RPM has a high level of physical assets or inventory.

Debt Coverage by Assets: RPM's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

2.06%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RPM's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RPM's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: RPM's dividends per share have been stable in the past 10 years.

Growing Dividend: RPM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), RPM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RPM's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Frank Sullivan (58yo)

17yrs

Tenure

US$8,397,565

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

Compensation vs. Market: Frank's total compensation ($USD8.40M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Frank's compensation has increased by more than 20% in the past year.


Management Age and Tenure

9.8yrs

Average Tenure

55yo

Average Age

Experienced Management: RPM's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: RPM's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: RPM 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

Ownership Breakdown


Management Team

  • Frank Sullivan (58yo)

    Chairman

    • Tenure: 17yrs
    • Compensation: US$8.40m
  • Keith Smiley (57yo)

    VP of Finance & Controller

    • Tenure: 7.5yrs
    • Compensation: US$1.18m
  • Thomas Sullivan (55yo)

    Vice President of Corporate Development

    • Tenure: 12yrs
  • Lonny DiRusso (54yo)

    VP & Chief Information Officer

    • Tenure: 1yrs
  • Michael Matchinga

    Director of Human Resource Information Systems

    • Tenure: 0yrs
  • Edward Moore (62yo)

    Senior VP

    • Tenure: 12.8yrs
    • Compensation: US$2.06m
  • Janeen Kastner (52yo)

    Vice President of Corporate Benefits & Risk Management

    • Tenure: 12yrs
    • Compensation: US$1.92m
  • Russell Gordon (53yo)

    VP & CFO

    • Tenure: 7.5yrs
    • Compensation: US$2.39m
  • Kathie Rogers

    Manager of Investor Relations

    • Tenure: 0yrs
  • Michael Sullivan

    VP of Operations & Chief Restructuring Officer

    • Tenure: 0.3yrs

Board Members

  • Bruce Carbonari (63yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$218.90k
  • David Daberko (74yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$216.40k
  • Tom Gross (64yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$198.90k
  • Sal Fazzolari (66yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$221.40k
  • Frank Sullivan (58yo)

    Chairman

    • Tenure: 17yrs
    • Compensation: US$8.40m
  • Stephen Knoop (54yo)

    Chairman of SPHC and Chief Executive Officer of SPHC

    • Tenure: 0yrs
    • Compensation: US$1.61m
  • William Summers (68yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$198.90k
  • Fred Nance (65yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$198.90k
  • Jenniffer Deckard (53yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$198.90k
  • Julie Lagacy (52yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$198.90k

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$9.080b
  • 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 Analysis2019/10/21 23:41
End of Day Share Price2019/10/21 00:00
Earnings2019/08/31
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.