RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
NYSE:RPM - New York Stock Exchange, Inc. - US7496851038 - Common Stock - Currency: USD
Taking everything into account, RPM scores 6 out of 10 in our fundamental rating. RPM was compared to 85 industry peers in the Chemicals industry. RPM scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, RPM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RPM had positive earnings in the past year.
In the past year RPM had a positive cash flow from operations.
RPM had positive earnings in each of the past 5 years.
In the past 5 years RPM always reported a positive cash flow from operatings.
1.2 Ratios
RPM has a better Return On Assets (8.82%) than 94.12% of its industry peers.
Looking at the Return On Equity, with a value of 23.77%, RPM belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
RPM has a better Return On Invested Capital (11.55%) than 90.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RPM is significantly above the industry average of 6.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 23.77% | ||
| ROIC | 11.55% |
ROA(3y)8.25%
ROA(5y)8%
ROE(3y)23.12%
ROE(5y)24.52%
ROIC(3y)12.55%
ROIC(5y)12.2%
1.3 Margins
RPM has a Profit Margin of 9.30%. This is amongst the best in the industry. RPM outperforms 85.88% of its industry peers.
RPM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.21%, RPM is doing good in the industry, outperforming 68.24% of the companies in the same industry.
RPM's Operating Margin has improved in the last couple of years.
The Gross Margin of RPM (41.38%) is better than 87.06% of its industry peers.
RPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.21% | ||
| PM (TTM) | 9.3% | ||
| GM | 41.38% |
OM growth 3Y8.29%
OM growth 5Y4.32%
PM growth 3Y8.58%
PM growth 5Y11.13%
GM growth 3Y4.49%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
RPM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RPM has less shares outstanding than it did 1 year ago.
RPM has less shares outstanding than it did 5 years ago.
RPM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.09 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM's Altman-Z score of 4.09 is amongst the best of the industry. RPM outperforms 88.24% of its industry peers.
RPM has a debt to FCF ratio of 4.92. This is a neutral value as RPM would need 4.92 years to pay back of all of its debts.
RPM has a Debt to FCF ratio of 4.92. This is in the better half of the industry: RPM outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that RPM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, RPM is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.3
WACC8.86%
2.3 Liquidity
A Current Ratio of 2.16 indicates that RPM has no problem at all paying its short term obligations.
RPM has a Current ratio of 2.16. This is comparable to the rest of the industry: RPM outperforms 57.65% of its industry peers.
A Quick Ratio of 1.45 indicates that RPM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, RPM is doing good in the industry, outperforming 62.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
RPM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.29%.
Measured over the past years, RPM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.54% on average per year.
RPM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.12%.
Measured over the past years, RPM shows a small growth in Revenue. The Revenue has been growing by 6.01% on average per year.
EPS 1Y (TTM)7.29%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%10.26%
Revenue 1Y (TTM)-21.12%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%3.68%
3.2 Future
Based on estimates for the next years, RPM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
RPM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.06% yearly.
EPS Next Y6.79%
EPS Next 2Y9.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y4.51%
Revenue Next 3Y4.06%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RPM is valuated rather expensively with a Price/Earnings ratio of 23.69.
RPM's Price/Earnings is on the same level as the industry average.
RPM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.18, RPM is valued on the expensive side.
RPM's Price/Forward Earnings is on the same level as the industry average.
RPM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPM is valued a bit more expensive than 63.53% of the companies in the same industry.
RPM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.94 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RPM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)2.05
EPS Next 2Y9.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
RPM's Dividend Yield is comparable with the industry average which is at 3.76.
RPM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of RPM grows each year by 6.96%, which is quite nice.
RPM has been paying a dividend for at least 10 years, so it has a reliable track record.
RPM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.96%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
37.26% of the earnings are spent on dividend by RPM. This is a low number and sustainable payout ratio.
The dividend of RPM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.26%
EPS Next 2Y9.66%
EPS Next 3YN/A
125.55
+3.72 (+3.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.39%
Inst Owner Change-0.25%
Ins Owners1.2%
Ins Owner Change1.05%
Market Cap16.12B
Analysts72.73
Price Target135.89 (8.24%)
Short Float %2%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend1.99
Dividend Growth(5Y)6.96%
DP37.26%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.34%
Min EPS beat(2)-29.89%
Max EPS beat(2)7.22%
EPS beat(4)3
Avg EPS beat(4)-3.9%
Min EPS beat(4)-29.89%
Max EPS beat(4)7.22%
EPS beat(8)5
Avg EPS beat(8)-0.19%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)10
Avg EPS beat(16)3.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)2.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)2.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)7
Avg Revenue beat(12)8.57%
Revenue beat(16)9
Avg Revenue beat(16)6.76%
PT rev (1m)8.38%
PT rev (3m)11.29%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 22.18 | ||
| P/S | 2.19 | ||
| P/FCF | 29.94 | ||
| P/OCF | 20.98 | ||
| P/B | 5.59 | ||
| P/tB | 33.1 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)5.3
EY4.22%
EPS(NY)5.66
Fwd EY4.51%
FCF(TTM)4.19
FCFY3.34%
OCF(TTM)5.98
OCFY4.77%
SpS57.43
BVpS22.48
TBVpS3.79
PEG (NY)3.49
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 23.77% | ||
| ROCE | 14.27% | ||
| ROIC | 11.55% | ||
| ROICexc | 12.13% | ||
| ROICexgc | 20.19% | ||
| OM | 12.21% | ||
| PM (TTM) | 9.3% | ||
| GM | 41.38% | ||
| FCFM | 7.3% |
ROA(3y)8.25%
ROA(5y)8%
ROE(3y)23.12%
ROE(5y)24.52%
ROIC(3y)12.55%
ROIC(5y)12.2%
ROICexc(3y)13.15%
ROICexc(5y)12.78%
ROICexgc(3y)21.16%
ROICexgc(5y)21.22%
ROCE(3y)15.51%
ROCE(5y)15.07%
ROICexcg growth 3Y-0.33%
ROICexcg growth 5Y2.51%
ROICexc growth 3Y1.42%
ROICexc growth 5Y3.45%
OM growth 3Y8.29%
OM growth 5Y4.32%
PM growth 3Y8.58%
PM growth 5Y11.13%
GM growth 3Y4.49%
GM growth 5Y1.71%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.92 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 118.62% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 9.63 | ||
| Cash Conversion | 70.23% | ||
| Profit Quality | 78.47% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.09 |
F-Score6
WACC8.86%
ROIC/WACC1.3
Cap/Depr(3y)135.92%
Cap/Depr(5y)132.01%
Cap/Sales(3y)3.18%
Cap/Sales(5y)3.09%
Profit Quality(3y)100.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.29%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%10.26%
EPS Next Y6.79%
EPS Next 2Y9.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-21.12%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%3.68%
Revenue Next Year5.81%
Revenue Next 2Y4.51%
Revenue Next 3Y4.06%
Revenue Next 5YN/A
EBIT growth 1Y-22.96%
EBIT growth 3Y11.76%
EBIT growth 5Y10.58%
EBIT Next Year34.35%
EBIT Next 3Y15.29%
EBIT Next 5YN/A
FCF growth 1Y-40.74%
FCF growth 3YN/A
FCF growth 5Y6.01%
OCF growth 1Y-31.55%
OCF growth 3Y62.59%
OCF growth 5Y6.91%