NYSE:RPM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: RPM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

RPM

2.8%

US Chemicals

1.9%

US Market


1 Year Return

23.3%

RPM

5.6%

US Chemicals

16.4%

US Market

Return vs Industry: RPM exceeded the US Chemicals industry which returned 4.3% over the past year.

Return vs Market: RPM exceeded the US Market which returned 16.3% over the past year.


Shareholder returns

RPMIndustryMarket
7 Day3.3%2.8%1.9%
30 Day11.4%6.6%4.5%
90 Day21.7%20.8%17.6%
1 Year25.8%23.3%8.0%5.6%18.9%16.4%
3 Year85.0%72.8%25.8%2.3%44.1%34.8%
5 Year101.9%79.9%52.5%19.3%75.3%56.3%

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?

35.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RPM ($84.32) is trading above our estimate of fair value ($71.67)

Significantly Below Fair Value: RPM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RPM is poor value based on its PE Ratio (35.8x) compared to the US Chemicals industry average (26.6x).

PE vs Market: RPM is poor value based on its PE Ratio (35.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RPM is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RPM is overvalued based on its PB Ratio (8.7x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

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

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPM's forecast earnings growth (17.7% per year) is above the savings rate (2.2%).

Earnings vs Market: RPM's earnings (17.7% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: RPM's revenue (2.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: RPM's revenue (2.8% 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 (31.2%)


Next Steps

Past Performance

How has RPM International performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPM has high quality earnings.

Growing Profit Margin: RPM's current net profit margins (5.5%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: RPM's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: RPM's earnings growth over the past year (13.9%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: RPM earnings growth over the past year (13.9%) exceeded the Chemicals industry -20.5%.


Return on Equity

High ROE: Whilst RPM's Return on Equity (24.12%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is RPM International's financial position?


Financial Position Analysis

Short Term Liabilities: RPM's short term assets ($2.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: RPM's short term assets ($2.4B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: RPM's debt to equity ratio (201.4%) is considered high.

Reducing Debt: RPM's debt to equity ratio has increased from 128.6% to 201.4% over the past 5 years.

Debt Coverage: RPM's debt is well covered by operating cash flow (21.6%).

Interest Coverage: RPM's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RPM's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RPM's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (4.35%).


Stability and Growth of Payments

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 (60.7%), 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 (37.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Materials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Frank Sullivan (59 yo)

17.83yrs

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 ($USD8.40M) is about average for companies of similar size in the US market ($USD11.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Sullivan
Chairman17.83yrsUS$8.40m0.80%
$ 87.1m
Russell Gordon
VP & CFO8.33yrsUS$2.39m0.088%
$ 9.6m
Edward Moore
Senior VP9.58yrsUS$2.06m0.042%
$ 4.6m
Keith Smiley
VP of Finance & Controller8.33yrsUS$1.18m0.085%
$ 9.3m
Janeen Kastner
Vice President of Corporate Benefits & Risk Management12.83yrsUS$1.92m0.071%
$ 7.8m
Michael Sullivan
VP of Operations & Chief Restructuring Officer1.17yrsno data0.0042%
$ 459.9k
Lonny DiRusso
VP & Chief Information Officer1.83yrsno datano data
Kathie Rogers
Manager of Investor Relationsno datano datano data
Thomas Sullivan
Vice President of Corporate Development12.83yrsno datano data
Michael Matchinga
Director of Human Resource Information Systemsno datano datano data
Randell McShepard
VP of Public Affairs & Chief Talent Officer2.08yrsno datano data
Dom Robertson
Managing Director11.25yrsno datano data

9.0yrs

Average Tenure

57yo

Average Age

Experienced Management: RPM's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Sullivan
Chairman17.83yrsUS$8.40m0.80%
$ 87.1m
Bruce Carbonari
Independent Lead Directorno dataUS$218.90k0.017%
$ 1.9m
David Daberko
Independent Director12.83yrsUS$216.40k0.014%
$ 1.5m
Thomas Gross
Independent Director8.33yrsUS$198.90k0.013%
$ 1.4m
Salvatore Fazzolari
Independent Director7.58yrsUS$221.40k0.011%
$ 1.2m
William Summers
Independent Director16.08yrsUS$198.90k0.032%
$ 3.5m
John Ballbach
Independent Director2.17yrsUS$198.90k0.011%
$ 1.2m
Frederick Nance
Independent Director13.58yrsUS$198.90k0.014%
$ 1.5m
Robert Livingston
Independent Director2.83yrsUS$213.90k0.0085%
$ 931.8k
Jenniffer Deckard
Independent Director4.83yrsUS$198.90k0.0074%
$ 811.4k
Julie Lagacy
Independent Director3.08yrsUS$198.90k0.0047%
$ 510.3k
Kirkland Andrews
Independent Director2.17yrsUS$213.90k0.0045%
$ 497.1k

7.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: RPM's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$10.950b
  • Shares outstanding: 129.86m
  • 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. It offers waterproofing, coatings, and institutional roofing systems; sealan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:35
End of Day Share Price2020/08/07 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.