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 gets an excellent profitability rating and is at the same time showing great financial health properties. RPM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RPM was profitable.
In the past year RPM had a positive cash flow from operations.
Each year in the past 5 years RPM has been profitable.
In the past 5 years RPM always reported a positive cash flow from operatings.
1.2 Ratios
RPM's Return On Assets of 9.68% is amongst the best of the industry. RPM outperforms 94.12% of its industry peers.
RPM has a Return On Equity of 23.96%. This is amongst the best in the industry. RPM outperforms 92.94% of its industry peers.
With an excellent Return On Invested Capital value of 12.27%, RPM belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
RPM had an Average Return On Invested Capital over the past 3 years of 11.40%. This is above the industry average of 7.01%.
The 3 year average ROIC (11.40%) for RPM is below the current ROIC(12.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 23.96% | ||
| ROIC | 12.27% |
ROA(3y)7.73%
ROA(5y)7.31%
ROE(3y)23.39%
ROE(5y)24.55%
ROIC(3y)11.4%
ROIC(5y)10.86%
1.3 Margins
With an excellent Profit Margin value of 8.78%, RPM belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
In the last couple of years the Profit Margin of RPM has grown nicely.
RPM's Operating Margin of 12.15% is fine compared to the rest of the industry. RPM outperforms 65.88% of its industry peers.
In the last couple of years the Operating Margin of RPM has grown nicely.
Looking at the Gross Margin, with a value of 41.09%, RPM belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
In the last couple of years the Gross Margin of RPM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 8.78% | ||
| GM | 41.09% |
OM growth 3Y-0.18%
OM growth 5Y6.41%
PM growth 3Y-0.74%
PM growth 5Y10.89%
GM growth 3Y1.43%
GM growth 5Y1.83%
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RPM has less shares outstanding
Compared to 1 year ago, RPM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.73 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM has a Altman-Z score of 4.73. This is amongst the best in the industry. RPM outperforms 92.94% of its industry peers.
The Debt to FCF ratio of RPM is 3.71, which is a good value as it means it would take RPM, 3.71 years of fcf income to pay off all of its debts.
RPM has a better Debt to FCF ratio (3.71) than 85.88% of its industry peers.
RPM has a Debt/Equity ratio of 0.78. This is a neutral value indicating RPM is somewhat dependend on debt financing.
RPM has a Debt to Equity ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.41
WACC8.68%
2.3 Liquidity
RPM has a Current Ratio of 2.22. This indicates that RPM is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.22, RPM is doing good in the industry, outperforming 62.35% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that RPM should not have too much problems paying its short term obligations.
RPM has a Quick ratio of 1.38. This is in the better half of the industry: RPM outperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.44% 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 13.18% yearly.
The Revenue for RPM has decreased by -21.98% 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 5.68% yearly.
EPS 1Y (TTM)8.44%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%-32.69%
Revenue 1Y (TTM)-21.98%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%-3.05%
3.2 Future
RPM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.12% yearly.
RPM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.05% yearly.
EPS Next Y5.55%
EPS Next 2Y6.82%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year-0.45%
Revenue Next 2Y1.47%
Revenue Next 3Y2.05%
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.
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
The Price/Earnings ratio is 22.56, which indicates a rather expensive current valuation of RPM.
RPM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.70, RPM is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.57, the valuation of RPM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RPM to the average of the S&P500 Index (22.49), we can say RPM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.57 |
4.2 Price Multiples
RPM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RPM is more expensive than 64.71% 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 | 26.34 | ||
| EV/EBITDA | 15.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RPM may justify a higher PE ratio.
PEG (NY)4.07
PEG (5Y)1.71
EPS Next 2Y6.82%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, RPM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.70, RPM has a dividend in line with its industry peers.
RPM's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of RPM has a limited annual growth rate of 5.62%.
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)5.62%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
RPM pays out 38.91% of its income as dividend. This is a sustainable payout ratio.
RPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.91%
EPS Next 2Y6.82%
EPS Next 3Y8.12%
115.97
-0.05 (-0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.52%
Inst Owner Change0.99%
Ins Owners1.18%
Ins Owner Change0%
Market Cap14.89B
Analysts70.48
Price Target122.1 (5.29%)
Short Float %1.56%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend1.8
Dividend Growth(5Y)5.62%
DP38.91%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.57%
Min EPS beat(2)-29.89%
Max EPS beat(2)2.76%
EPS beat(4)2
Avg EPS beat(4)-5.85%
Min EPS beat(4)-29.89%
Max EPS beat(4)4.31%
EPS beat(8)5
Avg EPS beat(8)-0.63%
EPS beat(12)7
Avg EPS beat(12)1.6%
EPS beat(16)9
Avg EPS beat(16)2.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)2.12%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)8.35%
Revenue beat(16)9
Avg Revenue beat(16)6.78%
PT rev (1m)-11.23%
PT rev (3m)-11.32%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-9.85%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-6.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.57 | ||
| P/S | 2.04 | ||
| P/FCF | 26.34 | ||
| P/OCF | 18.61 | ||
| P/B | 5.57 | ||
| P/tB | 18.49 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)5.14
EY4.43%
EPS(NY)5.64
Fwd EY4.86%
FCF(TTM)4.4
FCFY3.8%
OCF(TTM)6.23
OCFY5.37%
SpS56.84
BVpS20.82
TBVpS6.27
PEG (NY)4.07
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 23.96% | ||
| ROCE | 16.5% | ||
| ROIC | 12.27% | ||
| ROICexc | 12.85% | ||
| ROICexgc | 20.2% | ||
| OM | 12.15% | ||
| PM (TTM) | 8.78% | ||
| GM | 41.09% | ||
| FCFM | 7.75% |
ROA(3y)7.73%
ROA(5y)7.31%
ROE(3y)23.39%
ROE(5y)24.55%
ROIC(3y)11.4%
ROIC(5y)10.86%
ROICexc(3y)11.92%
ROICexc(5y)11.39%
ROICexgc(3y)19.49%
ROICexgc(5y)19.06%
ROCE(3y)15.33%
ROCE(5y)14.61%
ROICexcg growth 3Y1.72%
ROICexcg growth 5Y1.48%
ROICexc growth 3Y4.55%
ROICexc growth 5Y6.26%
OM growth 3Y-0.18%
OM growth 5Y6.41%
PM growth 3Y-0.74%
PM growth 5Y10.89%
GM growth 3Y1.43%
GM growth 5Y1.83%
F-Score6
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.71 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 127.14% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 9.07 | ||
| Cash Conversion | 74.66% | ||
| Profit Quality | 88.22% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.73 |
F-Score6
WACC8.68%
ROIC/WACC1.41
Cap/Depr(3y)144.81%
Cap/Depr(5y)127.14%
Cap/Sales(3y)3.25%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.44%
EPS 3Y5.9%
EPS 5Y13.18%
EPS Q2Q%-32.69%
EPS Next Y5.55%
EPS Next 2Y6.82%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.98%
Revenue growth 3Y6.3%
Revenue growth 5Y5.68%
Sales Q2Q%-3.05%
Revenue Next Year-0.45%
Revenue Next 2Y1.47%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
EBIT growth 1Y-21.99%
EBIT growth 3Y6.11%
EBIT growth 5Y12.46%
EBIT Next Year26.09%
EBIT Next 3Y14.21%
EBIT Next 5YN/A
FCF growth 1Y1470%
FCF growth 3Y14.26%
FCF growth 5Y42.22%
OCF growth 1Y180.04%
OCF growth 3Y13.57%
OCF growth 5Y30.82%