RPM INTERNATIONAL INC (RPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RPM - US7496851038 - Common Stock
111.02 USD
+4.41 (+4.14%)
111.02 USD
0 (0%)
Taking everything into account, RPM scores 6 out of 10 in our fundamental rating. RPM was compared to 83 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
RPM had positive earnings in the past year.
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
With an excellent Return On Assets value of 8.63%, RPM belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
With an excellent Return On Equity value of 22.45%, RPM belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
RPM has a Return On Invested Capital of 11.27%. This is amongst the best in the industry. RPM outperforms 86.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPM is significantly above the industry average of 6.10%.
| 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
Looking at the Profit Margin, with a value of 9.12%, RPM belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
In the last couple of years the Profit Margin of RPM has grown nicely.
With a decent Operating Margin value of 12.09%, RPM is doing good in the industry, outperforming 66.27% of the companies in the same industry.
RPM's Operating Margin has improved in the last couple of years.
RPM has a better Gross Margin (41.33%) than 85.54% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPM is destroying value.
RPM has less shares outstanding than it did 1 year ago.
RPM has less shares outstanding than it did 5 years ago.
RPM has a worse debt/assets ratio than last year.
2.2 Solvency
RPM has an Altman-Z score of 3.86. This indicates that RPM is financially healthy and has little risk of bankruptcy at the moment.
RPM has a better Altman-Z score (3.86) than 87.95% 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.
With an excellent Debt to FCF ratio value of 5.17, RPM belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
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 (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 | 3.86 |
ROIC/WACC0.81
WACC13.97%
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.
Looking at the Current ratio, with a value of 2.26, RPM is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that RPM should not have too much problems paying its short term obligations.
RPM's Quick ratio of 1.51 is fine compared to the rest of the industry. RPM outperforms 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for RPM have decreased by -3.01% in the last 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.
Looking at the last year, RPM shows a small growth in Revenue. The Revenue has grown by 0.51% in the last year.
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)-3.01%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%-13.67%
Revenue 1Y (TTM)0.51%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%3.5%
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 8.44% on average per year.
Based on estimates for the next years, RPM will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y8.06%
EPS Next 2Y9.2%
EPS Next 3Y8.44%
EPS Next 5YN/A
Revenue Next Year6.76%
Revenue Next 2Y5.05%
Revenue Next 3Y4.45%
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
Based on the Price/Earnings ratio of 21.56, the valuation of RPM can be described as rather expensive.
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 27.19.
A Price/Forward Earnings ratio of 17.57 indicates a rather expensive valuation of RPM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPM is on the same level as its industry peers.
RPM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 17.57 |
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.
RPM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RPM is cheaper than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.59 | ||
| EV/EBITDA | 14.48 |
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)2.67
PEG (5Y)1.87
EPS Next 2Y9.2%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
RPM has a Yearly Dividend Yield of 2.03%.
Compared to an average industry Dividend Yield of 2.36, RPM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, RPM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
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 2Y9.2%
EPS Next 3Y8.44%
111.02
+4.41 (+4.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.43%
Inst Owner Change0%
Ins Owners1.24%
Ins Owner Change1.16%
Market Cap14.23B
Revenue(TTM)7.37B
Net Income(TTM)685.88M
Analysts76.36
Price Target134.04 (20.74%)
Short Float %1.47%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)-0.81%
PT rev (3m)-2.24%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.89%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.54%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 17.57 | ||
| P/S | 1.89 | ||
| P/FCF | 27.59 | ||
| P/OCF | 18.79 | ||
| P/B | 4.66 | ||
| P/tB | 25.18 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)5.15
EY4.64%
EPS(NY)6.32
Fwd EY5.69%
FCF(TTM)4.02
FCFY3.62%
OCF(TTM)5.91
OCFY5.32%
SpS58.63
BVpS23.83
TBVpS4.41
PEG (NY)2.67
PEG (5Y)1.87
Graham Number52.55
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 | 3.86 |
F-Score5
WACC13.97%
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)-3.01%
EPS 3Y13.03%
EPS 5Y11.54%
EPS Q2Q%-13.67%
EPS Next Y8.06%
EPS Next 2Y9.2%
EPS Next 3Y8.44%
EPS Next 5YN/A
Revenue 1Y (TTM)0.51%
Revenue growth 3Y3.2%
Revenue growth 5Y6.01%
Sales Q2Q%3.5%
Revenue Next Year6.76%
Revenue Next 2Y5.05%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
EBIT growth 1Y-23.98%
EBIT growth 3Y11.76%
EBIT growth 5Y10.58%
EBIT Next Year32.07%
EBIT Next 3Y14.24%
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.
What is the valuation status of RPM INTERNATIONAL INC (RPM) stock?
ChartMill assigns a valuation rating of 4 / 10 to RPM INTERNATIONAL INC (RPM). This can be considered as Fairly Valued.
Can you provide the profitability details for RPM INTERNATIONAL INC?
RPM INTERNATIONAL INC (RPM) has a profitability rating of 9 / 10.
What is the valuation of RPM INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RPM INTERNATIONAL INC (RPM) is 21.56 and the Price/Book (PB) ratio is 4.66.
Can you provide the dividend sustainability for RPM stock?
The dividend rating of RPM INTERNATIONAL INC (RPM) is 7 / 10 and the dividend payout ratio is 38.08%.