RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RPM - US7496851038 - Common Stock
106.17 USD
+0.38 (+0.36%)
106.17 USD
0 (0%)
RPM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making RPM a very profitable company, without any liquidiy or solvency issues. RPM has a valuation in line with the averages, but it does not seem to be growing. RPM also has an excellent dividend rating. These ratings could make RPM a good candidate 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.
Each year in the past 5 years RPM has been profitable.
Each year in the past 5 years RPM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.63%, RPM belongs to the best of the industry, outperforming 91.67% 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 94.05% of its industry peers.
With an excellent Return On Invested Capital value of 11.27%, RPM belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
RPM had an Average Return On Invested Capital over the past 3 years of 12.55%. This is significantly above the industry average of 6.09%.
| 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 83.33% of the companies in the same industry.
RPM's Profit Margin has improved in the last couple of years.
RPM's Operating Margin of 12.09% is fine compared to the rest of the industry. RPM outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of RPM has grown nicely.
RPM's Gross Margin of 41.33% is amongst the best of the industry. RPM outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of RPM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPM is destroying value.
RPM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RPM has been reduced compared to 5 years ago.
The debt/assets ratio for RPM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.85 indicates that RPM is not in any danger for bankruptcy at the moment.
RPM has a Altman-Z score of 3.85. This is amongst the best in the industry. RPM outperforms 88.10% of its industry peers.
RPM has a debt to FCF ratio of 5.17. This is a neutral value as RPM would need 5.17 years to pay back of all of its debts.
RPM has a better Debt to FCF ratio (5.17) than 80.95% of its industry peers.
RPM has a Debt/Equity ratio of 0.87. This is a neutral value indicating RPM is somewhat dependend on debt financing.
RPM has a Debt to Equity ratio of 0.87. This is comparable to the rest of the industry: RPM outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.81
WACC13.87%
2.3 Liquidity
RPM has a Current Ratio of 2.26. This indicates that RPM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RPM (2.26) is better than 64.29% 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 63.10% 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%.
The Earnings Per Share has been growing by 11.54% on average over the past years. This is quite good.
The Revenue for RPM has decreased by -19.20% in the past year. This is quite bad
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
RPM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.67% yearly.
Based on estimates for the next years, RPM will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y8.12%
EPS Next 2Y9.3%
EPS Next 3Y8.67%
EPS Next 5YN/A
Revenue Next Year6.83%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
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
RPM is valuated rather expensively with a Price/Earnings ratio of 19.88.
Compared to the rest of the industry, the Price/Earnings ratio of RPM is on the same level as its industry peers.
RPM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
The Price/Forward Earnings ratio is 16.77, which indicates a correct valuation of RPM.
The rest of the industry has a similar Price/Forward Earnings ratio as RPM.
When comparing the Price/Forward Earnings ratio of RPM to the average of the S&P500 Index (24.04), we can say RPM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
RPM's Enterprise Value to EBITDA is on the same level as the industry average.
63.10% of the companies in the same industry are more expensive than RPM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.38 | ||
| EV/EBITDA | 14.38 |
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)2.45
PEG (5Y)1.72
EPS Next 2Y9.3%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 2.02%.
RPM's Dividend Yield is comparable with the industry average which is at 2.46.
RPM's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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 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 2Y9.3%
EPS Next 3Y8.67%
106.17
+0.38 (+0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.34%
Inst Owner Change-1.82%
Ins Owners1.24%
Ins Owner Change1.16%
Market Cap13.61B
Revenue(TTM)7.52B
Net Income(TTM)685.88M
Analysts75.45
Price TargetN/A
Short Float %1.48%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)-1%
PT rev (3m)-1.4%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.97%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 16.77 | ||
| P/S | 1.81 | ||
| P/FCF | 26.38 | ||
| P/OCF | 17.97 | ||
| P/B | 4.46 | ||
| P/tB | 24.08 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.34
EY5.03%
EPS(NY)6.33
Fwd EY5.96%
FCF(TTM)4.02
FCFY3.79%
OCF(TTM)5.91
OCFY5.57%
SpS58.63
BVpS23.83
TBVpS4.41
PEG (NY)2.45
PEG (5Y)1.72
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 | 3.85 |
F-Score5
WACC13.87%
ROIC/WACC0.81
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 Y8.12%
EPS Next 2Y9.3%
EPS Next 3Y8.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.2%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%7.36%
Revenue Next Year6.83%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5YN/A
EBIT growth 1Y-23.98%
EBIT growth 3Y11.76%
EBIT growth 5Y10.58%
EBIT Next Year32.07%
EBIT Next 3Y14.45%
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 4 / 10 to RPM INTERNATIONAL INC (RPM). This can be considered as Fairly Valued.
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 8.12% 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%.