RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
USA - NYSE:RPM - US7496851038 - Common Stock
112.19 USD
-0.55 (-0.49%)
112.19 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 gets an excellent profitability rating and is at the same time showing great financial health properties. RPM is valued expensive and it does not seem to be growing. RPM also has an excellent dividend rating. This makes RPM very considerable for dividend investing!
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.
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 (8.63%) is better than 91.57% of its industry peers.
RPM's Return On Equity of 22.45% is amongst the best of the industry. RPM outperforms 91.57% of its industry peers.
The Return On Invested Capital of RPM (11.27%) is better than 89.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPM is significantly above the industry average of 6.30%.
| 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
RPM has a Profit Margin of 9.12%. This is amongst the best in the industry. RPM outperforms 85.54% of its industry peers.
In the last couple of years the Profit Margin of RPM has grown nicely.
RPM has a better Operating Margin (12.09%) than 66.27% of its industry peers.
In the last couple of years the Operating Margin of RPM has grown nicely.
With an excellent Gross Margin value of 41.33%, RPM belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RPM is creating some value.
RPM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RPM has less shares outstanding
The debt/assets ratio for RPM is higher compared to a year ago.
2.2 Solvency
RPM has an Altman-Z score of 3.96. This indicates that RPM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RPM (3.96) is better than 86.75% 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.
RPM has a Debt to FCF ratio of 5.17. This is amongst the best in the industry. RPM outperforms 80.72% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that RPM is somewhat dependend on debt financing.
RPM's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. RPM outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.36
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.26 indicates that RPM has no problem at all paying its short term obligations.
RPM's Current ratio of 2.26 is fine compared to the rest of the industry. RPM outperforms 61.45% 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.
Looking at the Quick ratio, with a value of 1.51, RPM is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.89% over the past year.
The Earnings Per Share has been growing by 11.54% on average over the past years. This is quite good.
RPM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.20%.
The Revenue has been growing slightly by 6.01% on average over the past years.
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
Based on estimates for the next years, RPM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.42% on average per year.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y9.75%
EPS Next 2Y9.91%
EPS Next 3Y8.42%
EPS Next 5YN/A
Revenue Next Year5.87%
Revenue Next 2Y4.9%
Revenue Next 3Y4.72%
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
A Price/Earnings ratio of 21.01 indicates a rather expensive valuation of RPM.
The rest of the industry has a similar Price/Earnings ratio as RPM.
RPM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
The Price/Forward Earnings ratio is 17.52, which indicates a rather expensive current valuation of RPM.
The rest of the industry has a similar Price/Forward Earnings ratio as RPM.
RPM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPM is valued a bit more expensive than 61.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 15.19 |
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)2.15
PEG (5Y)1.82
EPS Next 2Y9.91%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, RPM has a reasonable but not impressive dividend return.
RPM's Dividend Yield is comparable with the industry average which is at 3.69.
RPM's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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
38.08% 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.
DP38.08%
EPS Next 2Y9.91%
EPS Next 3Y8.42%
112.19
-0.55 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.78%
Inst Owner Change0.02%
Ins Owners1.21%
Ins Owner Change1.6%
Market Cap14.39B
Analysts73.64
Price Target137.11 (22.21%)
Short Float %1.46%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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%
PT rev (3m)9.35%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 17.52 | ||
| P/S | 1.91 | ||
| P/FCF | 27.89 | ||
| P/OCF | 19 | ||
| P/B | 4.71 | ||
| P/tB | 25.46 | ||
| EV/EBITDA | 15.19 |
EPS(TTM)5.34
EY4.76%
EPS(NY)6.4
Fwd EY5.71%
FCF(TTM)4.02
FCFY3.59%
OCF(TTM)5.91
OCFY5.26%
SpS58.6
BVpS23.81
TBVpS4.41
PEG (NY)2.15
PEG (5Y)1.82
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%
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-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 | 3.96 |
F-Score5
WACC8.31%
ROIC/WACC1.36
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 Y9.75%
EPS Next 2Y9.91%
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 Year5.87%
Revenue Next 2Y4.9%
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%