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RPM International

NYSE:RPM
Snowflake Description

Established dividend payer with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RPM
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. The last earnings update was 25 days ago. More info.


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RPM Share Price and Events
7 Day Returns
-0.2%
NYSE:RPM
-1.9%
US Chemicals
-1%
US Market
1 Year Returns
6.7%
NYSE:RPM
-15%
US Chemicals
-0.4%
US Market
RPM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RPM International (RPM) -0.2% 9.5% 23.3% 6.7% 24.6% 46.1%
US Chemicals -1.9% -4.2% -1.6% -15% 10.1% 2.5%
US Market -1% -3.3% 0.8% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • RPM outperformed the Chemicals industry which returned -15% over the past year.
  • RPM outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
RPM
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RPM International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RPM International.

NYSE:RPM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RPM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.891 (1 + (1- 21%) (28.55%))
1.061
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.061 * 5.96%)
9.06%

Discounted Cash Flow Calculation for NYSE:RPM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RPM International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:RPM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.06%)
2020 397.60 Analyst x7 364.59
2021 505.47 Analyst x4 425.01
2022 602.00 Analyst x1 464.14
2023 680.44 Est @ 13.03% 481.06
2024 748.08 Est @ 9.94% 484.96
2025 806.26 Est @ 7.78% 479.27
2026 856.75 Est @ 6.26% 467.00
2027 901.33 Est @ 5.2% 450.50
2028 941.54 Est @ 4.46% 431.52
2029 978.65 Est @ 3.94% 411.29
Present value of next 10 years cash flows $4,459.35
NYSE:RPM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $978.65 × (1 + 2.73%) ÷ (9.06% – 2.73%)
$15,893.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,893.51 ÷ (1 + 9.06%)10
$6,679.40
NYSE:RPM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,459.35 + $6,679.40
$11,138.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,138.74 / 129.68
$85.9
NYSE:RPM Discount to Share Price
Calculation Result
Value per share (USD) From above. $85.90
Current discount Discount to share price of $68.23
= -1 x ($68.23 - $85.90) / $85.90
20.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RPM International is available for.
Intrinsic value
21%
Share price is $68.23 vs Future cash flow value of $85.9
Current Discount Checks
For RPM International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RPM International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RPM International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RPM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-31) in USD $2.03
NYSE:RPM Share Price ** NYSE (2019-08-16) in USD $68.23
United States of America Chemicals Industry PE Ratio Median Figure of 69 Publicly-Listed Chemicals Companies 18.54x
United States of America Market PE Ratio Median Figure of 3,096 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RPM International.

NYSE:RPM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RPM Share Price ÷ EPS (both in USD)

= 68.23 ÷ 2.03

33.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does RPM International's expected growth come at a high price?
Raw Data
NYSE:RPM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
21.4%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 51 Publicly-Listed Chemicals Companies 1.19x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NYSE:RPM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.61x ÷ 21.4%

1.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RPM International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on RPM International's assets?
Raw Data
NYSE:RPM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-31) in USD $10.73
NYSE:RPM Share Price * NYSE (2019-08-16) in USD $68.23
United States of America Chemicals Industry PB Ratio Median Figure of 97 Publicly-Listed Chemicals Companies 1.83x
United States of America Market PB Ratio Median Figure of 5,273 Publicly-Listed Companies 1.7x
NYSE:RPM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RPM Share Price ÷ Book Value per Share (both in USD)

= 68.23 ÷ 10.73

6.36x

* Primary Listing of RPM International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RPM International is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess RPM International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. RPM International has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RPM International expected to grow at an attractive rate?
  • RPM International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • RPM International's earnings growth is expected to exceed the United States of America market average.
  • RPM International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RPM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RPM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 21.4%
NYSE:RPM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.9%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RPM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RPM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-05-31 6,272 1
2023-05-31 6,262 2
2022-05-31 6,161 549 4
2021-05-31 5,962 624 522 11
2020-05-31 5,744 556 423 11
NYSE:RPM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-31 5,565 293 265
2019-02-28 5,521 395 217
2018-11-30 5,483 423 243
2018-08-31 5,436 409 288
2018-05-31 5,322 390 334
2018-02-28 5,256 353 375
2017-11-30 5,176 343 347
2017-08-31 5,052 354 182
2017-05-31 4,958 386 179
2017-02-28 4,892 424 203
2016-11-30 4,858 466 210
2016-08-31 4,823 475 363

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RPM International's earnings are expected to grow significantly at over 20% yearly.
  • RPM International's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RPM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from RPM International Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RPM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 4.49 4.49 4.49 1.00
2021-05-31 4.08 4.15 4.00 2.00
2020-05-31 3.24 3.30 3.18 2.00
NYSE:RPM Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-31 2.03
2019-02-28 1.66
2018-11-30 1.85
2018-08-31 2.20
2018-05-31 2.55
2018-02-28 2.86
2017-11-30 2.65
2017-08-31 1.39
2017-05-31 1.37
2017-02-28 1.56
2016-11-30 1.62
2016-08-31 2.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RPM International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess RPM International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RPM International has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has RPM International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RPM International's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
RPM International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RPM International Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RPM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-31 5,564.55 265.04 1,766.68
2019-02-28 5,521.31 217.36 1,666.70 69.70
2018-11-30 5,483.35 242.91 1,647.63 69.70
2018-08-31 5,436.24 288.40 1,655.00 69.70
2018-05-31 5,321.64 333.91 1,663.14
2018-02-28 5,256.33 374.84 1,585.99 64.90
2017-11-30 5,176.15 346.86 1,585.45 64.90
2017-08-31 5,051.51 181.55 1,573.94 64.90
2017-05-31 4,958.18 179.03 1,643.52
2017-02-28 4,891.91 203.42 1,537.73 61.50
2016-11-30 4,857.97 210.00 1,526.21 61.50
2016-08-31 4,823.19 362.87 1,485.21 61.50
2016-05-31 4,813.65 348.96 1,473.98 61.50
2016-02-29 4,760.22 323.84 1,460.01 56.70
2015-11-30 4,718.04 248.21 1,435.26 56.70
2015-08-31 4,633.18 235.87 1,422.24 56.70
2015-05-31 4,594.55 234.53 1,395.91 56.70
2015-02-28 4,498.17 215.46 1,381.58 54.60
2014-11-30 4,415.22 288.65 1,357.62 54.60
2014-08-31 4,415.58 281.38 1,346.59 54.60
2014-05-31 4,376.35 285.29 1,335.53 54.60
2014-02-28 4,270.35 242.87 1,299.71 49.30
2013-11-30 4,250.68 203.28 1,296.14 49.30
2013-08-31 4,196.62 171.23 1,278.85 49.30
2013-05-31 4,078.66 96.60 1,254.34 49.30
2013-02-28 4,009.65 113.70 1,232.10 45.40
2012-11-30 3,939.55 143.94 1,190.92 45.40
2012-08-31 3,838.21 162.82 1,147.31 45.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RPM International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RPM International used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • RPM International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RPM International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RPM International has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is RPM International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RPM International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of RPM International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RPM International Company Filings, last reported 2 months ago.

NYSE:RPM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 1,408.61 2,526.14 232.28
2019-02-28 1,442.27 2,526.05 202.77
2018-11-30 1,536.05 2,376.17 234.71
2018-08-31 1,613.38 2,273.74 304.98
2018-05-31 1,633.54 2,177.22 341.82
2018-02-28 1,636.02 2,186.47 360.29
2017-11-30 1,609.52 2,259.75 370.62
2017-08-31 1,562.20 2,243.39 308.59
2017-05-31 1,438.70 2,090.08 440.00
2017-02-28 1,285.73 2,218.93 294.70
2016-11-30 1,283.33 1,977.35 284.81
2016-08-31 1,437.56 1,993.43 272.87
2016-05-31 1,374.75 1,639.97 339.35
2016-02-29 1,240.52 2,086.43 285.81
2015-11-30 1,292.22 2,007.56 263.41
2015-08-31 1,297.02 2,061.89 247.26
2015-05-31 1,293.47 1,656.08 244.01
2015-02-28 1,233.79 1,868.11 284.09
2014-11-30 1,591.48 1,431.77 363.53
2014-08-31 1,634.37 1,491.44 301.93
2014-05-31 1,578.59 1,371.18 404.77
2014-02-28 1,484.92 1,409.53 257.10
2013-11-30 1,493.86 1,388.62 283.57
2013-08-31 1,423.73 1,436.85 256.90
2013-05-31 1,354.93 1,383.75 392.65
2013-02-28 1,309.75 1,406.89 290.90
2012-11-30 1,374.55 1,425.81 300.74
2012-08-31 1,362.35 1,207.11 296.48
  • 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).
X
Financial health checks
We assess RPM International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RPM International has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.05%
Current annual income from RPM International dividends. Estimated to be 2.14% next year.
If you bought $2,000 of RPM International shares you are expected to receive $41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RPM International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • RPM International's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RPM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 55 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2010 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RPM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 1.59 2.00
2021-05-31 1.48 5.00
2020-05-31 1.38 5.00
NYSE:RPM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-03 1.400 2.153
2019-04-03 1.400 2.370
2019-01-02 1.400 2.464
2018-10-04 1.400 2.294
2018-07-05 1.280 1.989
2018-04-04 1.280 2.533
2017-10-05 1.280 2.488
2017-07-05 1.200 2.348
2017-04-04 1.200 2.245
2017-01-04 1.200 2.251
2016-10-06 1.200 2.348
2016-07-08 1.100 2.070
2016-04-08 1.100 2.189
2016-01-05 1.100 2.633
2015-10-08 1.100 2.440
2015-07-02 1.040 2.301
2015-01-02 1.040 2.133
2014-10-09 1.040 2.232
2014-07-01 0.960 2.101
2014-04-01 0.960 2.217
2014-01-03 0.960 2.331
2013-10-10 0.960 2.447
2013-07-02 0.900 2.567
2013-04-02 0.900 2.805
2012-12-07 0.900 2.933
2012-10-04 0.900 3.309
2012-07-03 0.860 3.145
2012-04-03 0.860 3.283
2012-01-03 0.860 3.444
2011-10-06 0.860 3.794
2011-07-05 0.840 4.215
2011-04-05 0.840 3.660
2011-01-04 0.840 3.644
2010-10-07 0.840 3.989
2010-07-06 0.820 4.456
2010-04-06 0.820 4.117
2010-01-05 0.820 4.070
2009-10-08 0.820 4.190
2009-07-07 0.800 4.925
2009-04-01 0.800 5.589
2009-01-06 0.800 6.695
2008-10-10 0.800 6.058

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of RPM International's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess RPM International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RPM International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RPM International has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frank Sullivan
COMPENSATION $5,076,910
AGE 58
TENURE AS CEO 16.8 years
CEO Bio

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 International Inc. from 2001 to 2002. Mr. Sullivan is an Executive at RPM Europe SA, a European development office of RPM International Inc. He serves as a Director at RPOW UK Limited. From 1983 to 1987, he held various commercial lending and corporate finance positions at Harris Bank and First Union National Bank. He served as Technical Service Representative from 1987 to 1988 and Regional Sales Manager from 1987 to 1989 at RPM's AGR Company joint venture. Since 1989, he served at Rpm Inc.'s as Director of Corporate Development. He served as a Vice President since 1991, Chief Financial Officer since 1993, Executive Vice President since 1995, President since August 1999 and as Chief Operating Officer since October 2001 of RPM Inc. He has been Chairman of RPM International Inc. since October 2008. He has been Director of RPM International Inc. since 1995. He has been an Independent Director at The Timken Company since November 2003. Mr. Sullivan entered the University of North Carolina as a Morehead Scholar and received his BA degree in 1983. Mr. Sullivan serves on the boards of the American Coatings Association, the Cleveland Rock and Roll Hall of Fame and Museum, Greater Cleveland Partnership, the Ohio Business Roundtable, the Army War College Foundation, Inc., the Chamber of Commerce of the United States, the Cleveland School of Science and Medicine, and the Medina County Bluecoats. He has experience as a director of public companies and non-profit organizations.

CEO Compensation
  • Frank's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Frank's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the RPM International management team in years:

9.6
Average Tenure
55
Average Age
  • The average tenure for the RPM International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Frank Sullivan

TITLE
Chairman
COMPENSATION
$5M
AGE
58
TENURE
16.8 yrs

Russell Gordon

TITLE
VP & CFO
COMPENSATION
$2M
AGE
53
TENURE
7.3 yrs

Edward Moore

TITLE
Senior VP
COMPENSATION
$1M
AGE
62
TENURE
12.6 yrs

Janeen Kastner

TITLE
Vice President of Corporate Benefits & Risk Management
COMPENSATION
$1M
AGE
52
TENURE
11.8 yrs

Michael Sullivan

TITLE
VP of Operations & Chief Restructuring Officer
TENURE
0.2 yrs

Keith Smiley

TITLE
VP of Finance & Controller
AGE
57
TENURE
7.3 yrs

Lonny DiRusso

TITLE
VP & Chief Information Officer
AGE
54
TENURE
0.8 yrs

Kathie Rogers

TITLE
Manager of Investor Relations

Thomas Sullivan

TITLE
Vice President of Corporate Development
AGE
55
TENURE
11.8 yrs

Michael Matchinga

TITLE
Director of Human Resource Information Systems
Board of Directors Tenure

Average tenure and age of the RPM International board of directors in years:

9.1
Average Tenure
63.5
Average Age
  • The tenure for the RPM International board of directors is about average.
Board of Directors

Stephen Knoop

TITLE
Chairman of SPHC and Chief Executive Officer of SPHC
COMPENSATION
$2M
AGE
54

Bruce Carbonari

TITLE
Lead Director
COMPENSATION
$221K
AGE
63

Frank Sullivan

TITLE
Chairman
COMPENSATION
$5M
AGE
58
TENURE
10.8 yrs

David Daberko

TITLE
Independent Director
COMPENSATION
$219K
AGE
74
TENURE
11.8 yrs

Sal Fazzolari

TITLE
Independent Director
COMPENSATION
$224K
AGE
66
TENURE
6.6 yrs

William Summers

TITLE
Independent Director
COMPENSATION
$201K
AGE
68
TENURE
15.1 yrs

Fred Nance

TITLE
Independent Director
COMPENSATION
$204K
AGE
65
TENURE
12.6 yrs

Tom Gross

TITLE
Director
COMPENSATION
$201K
AGE
64
TENURE
7.3 yrs

Jenniffer Deckard

TITLE
Director
COMPENSATION
$201K
AGE
53
TENURE
3.8 yrs

Julie Lagacy

TITLE
Director
COMPENSATION
$201K
AGE
52
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • RPM International individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Jul 19 Sell Frederick Nance Individual 24. Jul 19 24. Jul 19 -1,100 $66.54 $-73,194
18. Oct 18 Buy John Ballbach Individual 15. Oct 18 15. Oct 18 1,680 $59.54 $100,022
09. Oct 18 Buy Kirkland Andrews Individual 05. Oct 18 05. Oct 18 2,000 $60.21 $120,419
X
Management checks
We assess RPM International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RPM International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

RPM International Inc. (NYSE:RPM): What Are The Future Prospects?

Investors may find it useful to understand how market analysts predict RPM International's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for RPM International Analysts' expectations for the upcoming year seems buoyant, with earnings expanding by a significant 59%. … NYSE:RPM Past and Future Earnings, August 13th 2019 Even though it’s helpful to understand the growth each year relative to today’s level, it may be more insightful to evaluate the rate at which the earnings are moving on average every year.

Simply Wall St -

How Does RPM International Inc. (NYSE:RPM) Fare As A Dividend Stock?

(NYSE:RPM) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. While RPM International's 2.1% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock during the year, equivalent to approximately 2.6% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to RPM International's ability to maintain its dividend. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. RPM International's EPS are effectively flat over the past five years. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Does RPM International Inc.'s (NYSE:RPM) CEO Pay Compare Well With Peers?

has reduced its earnings per share by an average of 3.2% a year, over the last three years (measured with a line of best fit). … Sadly for shareholders, earnings per share are actually down, over three years. … We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years.

Simply Wall St -

2 Days Left Until RPM International Inc. (NYSE:RPM) Trades Ex-Dividend

We need to see whether the dividend is covered by earnings and if it's growing. … The company paid out most of its earnings as dividends over the last year, even though business is booming and earnings per share are growing rapidly. … Higher earnings generally bode well for growing dividends, although with seemingly strong growth prospects we'd wonder why management are not reinvesting more in the business.

Simply Wall St -

The RPM International (NYSE:RPM) Share Price Is Up 33% And Shareholders Are Holding On

(NYSE:RPM) has fallen short of that second goal, with a share price rise of 33% over five years, which is below the market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, RPM International actually saw its EPS drop 2.5% per year.

Simply Wall St -

Read This Before Selling RPM International Inc. (NYSE:RPM) Shares

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for RPM International The Last 12 Months Of Insider Transactions At RPM International In the last twelve months, the biggest single purchase by an insider was when John Ballbach bought US$503k worth of shares at a price of US$62.12 per share. … NYSE:RPM Recent Insider Trading, June 6th 2019 RPM International is not the only stock insiders are buying. … Insider Ownership of RPM International Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Is RPM International Inc.'s (NYSE:RPM) 15% ROE Strong Compared To Its Industry?

View our latest analysis for RPM International How Do You Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for RPM International: 15% = US$217m ÷ US$1.4b (Based on the trailing twelve months to February 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Why RPM International Inc.'s (NYSE:RPM) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for RPM International: P/E of 34.06 = $56.49 ÷ $1.66 (Based on the trailing twelve months to February 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future.

Simply Wall St -

Is RPM International Inc.'s (NYSE:RPM) 2.3% Dividend Worth Your Time?

(NYSE:RPM) a good dividend stock? … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.

Simply Wall St -

Is RPM International Inc. (NYSE:RPM) Trading At A 21% Discount?

I will use the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Company Info

Description

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance and related services; sealing and bonding, and flooring and in-plant glazing solutions; solutions for fire stopping and intumescent steel coating, and the manufacturing industry; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes. It also offers corrosion-control coating, containment lining, fire and sound proofing, and insulation products; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; specialty construction products; and amine curing agents, reactive diluents, specialty epoxy resins and other intermediates. The company’s Specialty segment provides fluorescent colorants and pigments; shellac-based-specialty and marine coatings; insulated building cladding materials; fire and water damage restoration, and carpet cleaning and disinfecting products; fuel additives; and wood treatments, furniture finishes, and touch-up products. Its Consumer segment offers specialty products for paint contractors and the DIYers, deck and fence restoration products, metallic and faux finish coatings, exterior wood deck and concrete restoration systems, flooring finishes, and hobby paints and cements; caulk, sealant, adhesive, insulating foam, spackling, glazing, and patch and repair products; and nail enamels, polishes, and coating components. The company was founded in 1947 and is headquartered in Medina, Ohio.

Details
Name: RPM International Inc.
RPM
Exchange: NYSE
Founded: 1947
$8,847,735,075
129,675,144
Website: http://www.rpminc.com
Address: RPM International Inc.
2628 Pearl Road,
PO Box 777,
Medina,
Ohio, 44258,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RPM Common Stock New York Stock Exchange US USD 14. Dec 1972
DB RP8 Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
14,957
RPM International employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 23:46
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/07/24
Last earnings reported: 2019/05/31
Last annual earnings reported: 2019/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.