RPM International Inc.
RPM International Inc. Fundamental Analysis
RPM International Inc. (RPM) shows moderate financial fundamentals with a PE ratio of 22.06, profit margin of 8.79%, and ROE of 22.70%. The company generates $7.6B in annual revenue with weak year-over-year growth of 0.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RPM's fundamental strength across five key dimensions:
Efficiency Score
WeakRPM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRPM trades at attractive valuation levels.
Growth Score
ModerateRPM shows steady but slowing expansion.
Financial Health Score
ExcellentRPM maintains a strong and stable balance sheet.
Profitability Score
ModerateRPM maintains healthy but balanced margins.
Key Financial Metrics
Is RPM Expensive or Cheap?
P/E Ratio
RPM trades at 22.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RPM's PEG of -7.00 indicates potential undervaluation.
Price to Book
The market values RPM International Inc. at 4.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.05 times EBITDA. This signals the market has high growth expectations.
How Well Does RPM Make Money?
Net Profit Margin
For every $100 in sales, RPM International Inc. keeps $8.79 as profit after all expenses.
Operating Margin
Core operations generate 12.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.70 in profit for every $100 of shareholder equity.
ROA
RPM International Inc. generates $8.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RPM International Inc. produces operating cash flow of $829.52M, showing steady but balanced cash generation.
Free Cash Flow
RPM International Inc. produces free cash flow of $586.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.58 in free cash annually.
FCF Yield
RPM converts 3.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RPM Stacks Against Its Sector Peers
| Metric | RPM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.06 | 27.41 | Better (Cheaper) |
| ROE | 22.70% | 859.00% | Weak |
| Net Margin | 8.79% | -120873.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 0.51 | Weak (High Leverage) |
| Current Ratio | 2.22 | 4.80 | Strong Liquidity |
| ROA | 8.47% | -3590.00% (disorted) | Weak |
RPM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RPM International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.82%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
127.85%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
40.67%
Industry Style: Cyclical, Commodity, Value
High Growth