RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
USA - NYSE:RPM - US7496851038 - Common Stock
108.05 USD
+0.6 (+0.56%)
108.05 USD
0 (0%)
RPM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 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 is valued expensive and it does not seem to be growing. Finally RPM also has an excellent dividend rating. This makes RPM very considerable for dividend investing!
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.
Each year in the past 5 years RPM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.63%, RPM belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
RPM has a Return On Equity of 22.45%. This is amongst the best in the industry. RPM outperforms 92.68% of its industry peers.
RPM's Return On Invested Capital of 11.27% is amongst the best of the industry. RPM outperforms 89.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPM is significantly above the industry average of 6.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 22.45% | ||
| ROIC | 11.27% |
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 9.12%, RPM belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
In the last couple of years the Profit Margin of RPM has grown nicely.
RPM has a better Operating Margin (12.09%) than 68.29% of its industry peers.
In the last couple of years the Operating Margin of RPM has grown nicely.
RPM has a Gross Margin of 41.33%. This is amongst the best in the industry. RPM outperforms 87.80% of its industry peers.
RPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.09% | ||
| PM (TTM) | 9.12% | ||
| GM | 41.33% |
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.
The number of shares outstanding for RPM has been reduced compared to 1 year ago.
The number of shares outstanding for RPM has been reduced compared to 5 years ago.
Compared to 1 year ago, RPM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.88 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM's Altman-Z score of 3.88 is amongst the best of the industry. RPM outperforms 86.59% of its industry peers.
The Debt to FCF ratio of RPM is 5.17, which is a neutral value as it means it would take RPM, 5.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RPM (5.17) is better than 80.49% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that RPM is somewhat dependend on debt financing.
RPM has a Debt to Equity ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.38
WACC8.18%
2.3 Liquidity
A Current Ratio of 2.26 indicates that RPM has no problem at all paying its short term obligations.
RPM has a better Current ratio (2.26) than 63.41% of its industry peers.
RPM has a Quick Ratio of 1.51. This is a normal value and indicates that RPM is financially healthy and should not expect problems in meeting its short term obligations.
RPM has a Quick ratio of 1.51. This is in the better half of the industry: RPM outperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
RPM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.89%.
RPM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.54% yearly.
RPM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.20%.
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)3.89%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%2.17%
Revenue 1Y (TTM)-19.2%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%7.36%
3.2 Future
The Earnings Per Share is expected to grow by 8.42% on average over the next years. This is quite good.
RPM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y8.16%
EPS Next 2Y9.32%
EPS Next 3Y8.42%
EPS Next 5YN/A
Revenue Next Year6.87%
Revenue Next 2Y5.11%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 20.23, 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 26.28. RPM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.06, which indicates a rather expensive current valuation of RPM.
RPM's Price/Forward Earnings ratio is in line with the industry average.
RPM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.06 |
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 60.98% 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 | 26.85 | ||
| EV/EBITDA | 14.57 |
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)2.48
PEG (5Y)1.75
EPS Next 2Y9.32%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 2.04%.
Compared to an average industry Dividend Yield of 3.99, RPM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, RPM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of RPM is nicely growing with an annual growth rate of 6.96%!
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
RPM pays out 38.08% 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.
DP38.08%
EPS Next 2Y9.32%
EPS Next 3Y8.42%
108.05
+0.6 (+0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.78%
Inst Owner Change-1.41%
Ins Owners1.21%
Ins Owner Change1.58%
Market Cap13.85B
Revenue(TTM)7.52B
Net Income(TTM)685.88M
Analysts75.45
Price Target136.49 (26.32%)
Short Float %1.39%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend1.99
Dividend Growth(5Y)6.96%
DP38.08%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.12%
Min EPS beat(2)-0.98%
Max EPS beat(2)7.22%
EPS beat(4)2
Avg EPS beat(4)-5.22%
Min EPS beat(4)-29.89%
Max EPS beat(4)7.22%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)9
Avg EPS beat(16)2.83%
Revenue beat(2)2
Avg Revenue beat(2)2.11%
Min Revenue beat(2)1.77%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-2.99%
Max Revenue beat(4)2.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)7
Avg Revenue beat(12)8.59%
Revenue beat(16)10
Avg Revenue beat(16)6.89%
PT rev (1m)-0.46%
PT rev (3m)0.44%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.06 | ||
| P/S | 1.84 | ||
| P/FCF | 26.85 | ||
| P/OCF | 18.29 | ||
| P/B | 4.53 | ||
| P/tB | 24.5 | ||
| EV/EBITDA | 14.57 |
EPS(TTM)5.34
EY4.94%
EPS(NY)6.33
Fwd EY5.86%
FCF(TTM)4.02
FCFY3.72%
OCF(TTM)5.91
OCFY5.47%
SpS58.63
BVpS23.83
TBVpS4.41
PEG (NY)2.48
PEG (5Y)1.75
Graham Number53.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 22.45% | ||
| ROCE | 13.92% | ||
| ROIC | 11.27% | ||
| ROICexc | 11.81% | ||
| ROICexgc | 19.66% | ||
| OM | 12.09% | ||
| PM (TTM) | 9.12% | ||
| GM | 41.33% | ||
| FCFM | 6.86% |
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%
ROICexgc growth 3Y-0.33%
ROICexgc 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-Score5
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 121.36% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 9.5 | ||
| Cash Conversion | 68.37% | ||
| Profit Quality | 75.23% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.88 |
F-Score5
WACC8.18%
ROIC/WACC1.38
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)3.89%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%2.17%
EPS Next Y8.16%
EPS Next 2Y9.32%
EPS Next 3Y8.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.2%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%7.36%
Revenue Next Year6.87%
Revenue Next 2Y5.11%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y-23.98%
EBIT growth 3Y11.76%
EBIT growth 5Y10.58%
EBIT Next Year34.35%
EBIT Next 3Y14.48%
EBIT Next 5YN/A
FCF growth 1Y-22.28%
FCF growth 3YN/A
FCF growth 5Y6.01%
OCF growth 1Y-16.99%
OCF growth 3Y62.59%
OCF growth 5Y6.91%
RPM INTERNATIONAL INC / RPM FAQ
What is the fundamental rating for RPM stock?
ChartMill assigns a fundamental rating of 6 / 10 to RPM.
Can you provide the valuation status for RPM INTERNATIONAL INC?
ChartMill assigns a valuation rating of 3 / 10 to RPM INTERNATIONAL INC (RPM). This can be considered as Overvalued.
What is the profitability of RPM stock?
RPM INTERNATIONAL INC (RPM) has a profitability rating of 9 / 10.
What is the expected EPS growth for RPM INTERNATIONAL INC (RPM) stock?
The Earnings per Share (EPS) of RPM INTERNATIONAL INC (RPM) is expected to grow by 8.16% in the next year.
Is the dividend of RPM INTERNATIONAL INC sustainable?
The dividend rating of RPM INTERNATIONAL INC (RPM) is 7 / 10 and the dividend payout ratio is 38.08%.