RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
NYSE:RPM - US7496851038 - Common Stock
126.62 USD
+1.51 (+1.21%)
126.62 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RPM. RPM was compared to 83 industry peers in the Chemicals industry. RPM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RPM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year RPM was profitable.
RPM had a positive operating cash flow in the past year.
In the past 5 years RPM has always been profitable.
In the past 5 years RPM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RPM (8.82%) is better than 93.98% of its industry peers.
With an excellent Return On Equity value of 23.77%, RPM belongs to the best of the industry, outperforming 92.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.55%, RPM belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RPM is significantly above the industry average of 6.34%.
| 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
With an excellent Profit Margin value of 9.30%, RPM belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
RPM's Profit Margin has improved in the last couple of years.
RPM has a Operating Margin of 12.21%. This is in the better half of the industry: RPM outperforms 66.27% of its industry peers.
RPM's Operating Margin has improved in the last couple of years.
RPM's Gross Margin of 41.38% is amongst the best of the industry. RPM outperforms 87.95% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RPM is creating some value.
Compared to 1 year ago, RPM has less shares outstanding
Compared to 5 years ago, RPM has less shares outstanding
RPM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.14 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM has a Altman-Z score of 4.14. This is amongst the best in the industry. RPM outperforms 87.95% of its industry peers.
The Debt to FCF ratio of RPM is 4.92, which is a neutral value as it means it would take RPM, 4.92 years of fcf income to pay off all of its debts.
RPM has a Debt to FCF ratio of 4.92. This is amongst the best in the industry. RPM outperforms 84.34% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that RPM is somewhat dependend on debt financing.
The Debt to Equity ratio of RPM (0.91) is worse than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.34
WACC8.59%
2.3 Liquidity
RPM has a Current Ratio of 2.16. This indicates that RPM is financially healthy and has no problem in meeting its short term obligations.
RPM has a better Current ratio (2.16) than 60.24% of its industry peers.
A Quick Ratio of 1.45 indicates that RPM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, RPM is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.29% over the past year.
RPM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.54% yearly.
The Revenue for RPM has decreased by -21.12% in the past year. This is quite bad
RPM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
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 9.17% on average per year.
The Revenue is expected to grow by 4.06% on average over the next years.
EPS Next Y9.82%
EPS Next 2Y10.01%
EPS Next 3Y9.17%
EPS Next 5YN/A
Revenue Next Year5.8%
Revenue Next 2Y4.6%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.89, RPM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RPM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.06. RPM is around the same levels.
RPM is valuated rather expensively with a Price/Forward Earnings ratio of 21.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPM is on the same level as its industry peers.
RPM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RPM indicates a slightly more expensive valuation: RPM is more expensive than 60.24% of the companies listed in the same industry.
RPM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.18 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RPM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RPM may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)2.07
EPS Next 2Y10.01%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, RPM has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, RPM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of RPM is nicely growing with an annual growth rate of 6.96%!
RPM has paid a dividend for at least 10 years, which is a reliable track record.
RPM has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
RPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.26%
EPS Next 2Y10.01%
EPS Next 3Y9.17%
126.62
+1.51 (+1.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.39%
Inst Owner Change0.26%
Ins Owners1.2%
Ins Owner Change1.05%
Market Cap16.24B
Analysts72.73
Price Target137.11 (8.28%)
Short Float %1.81%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)8.21%
PT rev (3m)12.3%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)2.84%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 21.75 | ||
| P/S | 2.2 | ||
| P/FCF | 30.18 | ||
| P/OCF | 21.15 | ||
| P/B | 5.63 | ||
| P/tB | 33.36 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)5.3
EY4.19%
EPS(NY)5.82
Fwd EY4.6%
FCF(TTM)4.2
FCFY3.31%
OCF(TTM)5.99
OCFY4.73%
SpS57.47
BVpS22.49
TBVpS3.8
PEG (NY)2.43
PEG (5Y)2.07
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 | 4.14 |
F-Score6
WACC8.59%
ROIC/WACC1.34
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 Y9.82%
EPS Next 2Y10.01%
EPS Next 3Y9.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.12%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%3.68%
Revenue Next Year5.8%
Revenue Next 2Y4.6%
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 3Y15.4%
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%