RPM International Valuation Analysis
| RPM Stock | USD 101.39 -1.02 -1.00% |
Below Model Estimate
Today
The intrinsic value estimate for RPM International is based on a 3 months horizon. Elevated leverage (1.55x debt-to-equity) suggests balance sheet risk impacting valuation. Extending the time horizon generally improves valuation stability.
For RPM International, DCF-based intrinsic value and relative multiples each answer a different valuation question. An intrinsic value estimate based on RPM International's projected cash flows is cross-checked against peer multiples.
Main Profitability Drivers
RPM International converts revenue at a 4.25% net margin rate, while its operating margin sits at 7.52%. A 3.27-point margin gap suggests that below-the-line items meaningfully affect RPM International's net profitability. On $7.37 billion of revenue, RPM International earned $3.19 billion in gross profit and $690.33 million on the bottom line. With ROE at 13.00% and ROA at 6.12%, these return measures help contextualize RPM International's profitability relative to its balance sheet. Across most profitability measures, RPM International is under pressure, suggesting headwinds to near-term earnings quality. The full picture is available through RPM International's complete profitability review to assess how these metrics compare over time.
Price Book 3.98 | Gross Profit | Price Sales 1.68 | Profit Margin | Enterprise Value Revenue 1.96 |
RPM International Cash | $364.83 million |
Cash stood at $347.46 million as of December 31, 2025.
Revenue by Product
The latest product revenue disclosure for RPM International covers 3 reported segments. Among the reported segments, Consumer Segment leads at 564.46 million, with Construction Products Group Segment next at 546.66 million. RPM International's disclosed segment data helps frame product mix, even when the reported segment totals do not map cleanly to consolidated revenue.RPM International operates as a chemical producer where revenue is driven by industrial demand, input costs, and global commodity cycles, forming the primary lens for valuation. Trading as a growth-weighted stock in Chemicals, its earnings multiple reflects expectations for durable earnings expansion and platform-level economics. The analysis below connects enterprise value. profitability, and capital structure to explain what the market is pricing today.
Total Value Analysis
The current total-value analysis for RPM International points to enterprise value near 15.54 billion, market capitalization around 12.99 billion, debt of 2.96 billion, and cash and liquid equivalents of 200.46 million as of latest reporting. In practice, enterprise value isolates the operating business from capital-structure noise, but only holds if the underlying debt and cash figures are stable.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
15.54 billion | 12.99 billion | 2.96 billion | 200.46 million |
Investor Information
About 85.0% of RPM shares are owned by institutional investors. The book value of RPM was at this time reported as 24.61. RPM has Price/Earnings To Growth (PEG) ratio of 1.66. RPM International reported earnings per share (EPS) of 5.19. RPM had its last dividend issued on the 16th of April 2026. The firm completed a 1.250-for-1 stock split on 9th of December 1997. Liquidity coverage and operating returns support RPM International maintaining stable financial positioning. Asset-level profitability holds steady, reflecting balanced cost management and revenue retention.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 7.52% | 11.00% |
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| Total Cash From Operating Activities | $927.59 million | $883.42 million |
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| Operating Income | $1.09 billion | $1.04 billion |
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Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RPM International has an asset utilization ratio of 94.81 percent. This suggests that the Company is making $0.95 for each dollar of assets. An increasing asset utilization means that RPM International is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
RPM International's custom levered DCF lands near 96.29 per share compared with market pricing around 101.39, leaving the stock above the modeled value. The market is pricing the shares around 5.0% over the model estimate. The setup uses a WACC of 7.86% and a long-term growth rate of 3.0%, with next-period free cash flow around 861.57 Million. Projected discounted levered cash flows total about 2.85 Billion, while the terminal value contributes around 81.0% of enterprise value. As a result, the output remains highly sensitive to long-term assumptions. Terminal value driving 81.0% of the total means the output is heavily influenced by perpetual growth and discount rate assumptions beyond the explicit forecast horizon.Model Value / Share
96.29
Equity value per share from the current custom levered DCF summary row.
Market Price
101.39
Current market price used by the same scenario.
Model Premium
5.0%
Market price sits above the model output.
WACC / LT Growth
7.86% / 3.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 81.0%
RPM Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 7.86% |
| Long-Term Growth Rate | 3.0% |
| Cost of Equity | 8.93% |
| After-Tax Cost of Debt | 3.51% |
| Debt Weighting | 18.57% |
| Equity Weighting | 81.43% |
| Net Debt | 2.66 billion |
| Enterprise Value | 15.01 billion |
| Present Terminal Value | 12.16 billion |
| Terminal Value Share of EV | 81.0% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 6.11 billion | 0.00% | 608.96 million | 0 | 96.39 |
| 2022 | 6.71 billion | 9.85% | -43.67 million | 0 | 96.20 |
| 2023 | 7.26 billion | 8.18% | 322.67 million | 0 | 96.44 |
| 2024 | 7.34 billion | 1.09% | 908.34 million | 0 | 96.41 |
| 2025 | 7.37 billion | 0.51% | 538.26 million | 0 | 96.01 |
| 2026 | 7.39 billion | 0.17% | 601.48 million | 557.67 million | 96.29 |
| 2027 | 7.39 billion | 0.06% | 661.23 million | 568.42 million | 96.29 |
| 2028 | 7.39 billion | 0.02% | 720.24 million | 574.05 million | 96.29 |
| 2029 | 7.39 billion | 0.01% | 778.64 million | 575.4 million | 96.29 |
| 2030 | 7.39 billion | 0.00% | 836.48 million | 573.12 million | 96.29 |
Profitability Analysis
An analysis of RPM International's profitability data, RPM International is marginally profitable with a thin net margin of 4.25% and operating margin of 7.52%, leaving limited cushion against cost increases or revenue softness. Return on equity is 13.0%. Already-thin margins are contracting further, with multiple profitability indicators declining year over year.Net Income | First Reported 1985-08-31 | Previous Quarter 161.21 million | Current Value 51.36 million | Quarterly Volatility 59.1 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 47.00% | 48.00% |
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| Net Profit Margin | 4.25% | 8.41% |
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| Operating Profit Margin | 7.52% | 11.00% |
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| Pretax Profit Margin | 8.87% | 12.00% |
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| Return On Assets | 6.12% | 10.00% |
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| Return On Equity | 13.00% | 21.00% |
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Profitability for RPM International depends on margin structure, capital efficiency, and cost control. Net margin of 4.25% is thin, leaving limited cushion against cost increases or revenue softness. The breakdown below connects margin levels with asset efficiency and capital returns. RPM International reports return on equity of 13.0%, positive but not at levels that signal strong capital efficiency.
Earnings per Share Projection vs Actual
The evolution of RPM International's EPS estimates over time maps how analyst sentiment has responded to reported results. Cash per share of 1.53 at RPM International indicates the liquid resources available alongside reported earnings. RPM International's EPS figure reflects both top-line momentum and cost discipline across reporting periods. Consensus EPS projections for RPM are based on current analyst assumptions and may be revised. Projected earnings per share for RPM International anchor the market's pricing of near-term earnings power. Consensus estimates may not capture non-recurring items or stock-compensation effects, so testing against the current net margin profile (4.25%), guidance revisions, and prior forecast error adds precision. RPM International reported estimated earnings of 1.371675 in earnings per share on 31st of May 2026. When actual results deviate from this estimate, the gap typically signals whether earnings momentum is accelerating or fading.Macro event markers
Earnings Estimation Breakdown
14 analysts contribute to the current consensus. The last reported EPS was 0.57 as of 28th of February 2026.
Last Reported EPS
1.35
Lowest
1.37
Expected EPS
1.38
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of May 2026 | Current EPS (TTM) | |
| 14 | 89.75% | 0.57 | 1.37 | 5.19 |
Ownership Allocation
The majority of RPM International's outstanding shares are owned by institutions. This level of institutional concentration typically reflects the stock's inclusion in major indices, consistent liquidity, and long-term investment attractiveness for funds managing assets on behalf of pensions, endowments, and other institutional clients. With institutions controlling the majority of the float, changes in quarterly 13F filings can provide meaningful signals about shifts in professional investor sentiment.Revenue and Profit Overview
RPM reported last year's revenue of $7.37 billion. Total Income to common stockholders was $690.33 million with profit before taxes, overhead, and interest of $3.19 billion.Past Distributions to Stockholders
Understanding dividend distributions from RPM International may help investors assess capital return consistency. Reliable dividends generally reflect predictable cash generation and prudent financial management. For a deeper review of payout history, readers may learn more about RPM International dividends.
| 30th of April 2026 | ||
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| 31st of July 2024 |
Interpreting Recent Signals
At 29.64 times earnings, the market views RPM International's trajectory as broadly consistent with other materials and mining companies. For materials and mining companies, the earnings multiple reflects operating economics and cost structure more than top-line growth alone. At 4.25%, there is limited margin for error - a characteristic of materials and mining companies where fixed costs absorb most of the revenue base and volume fluctuations flow directly to the bottom line. This margin profile is a direct function of the underlying business economics. A 1.55 debt-to-equity ratio is high but not unusual for materials and mining companies - the financing demands of its commodity-linked extraction and production model require scale, though that same leverage magnifies earnings volatility. The 13.0% ROE places RPM International in a range where the business covers its cost of capital but has room to improve how effectively equity translates into earnings. The current valuation prices in steady earnings performance roughly in line with historical trends, meaning future performance depends more on meeting those expectations than exceeding them. Longer-term, production economics, commodity assumptions, and forward margin expectations will shape whether the market reassesses this positioning.
Overall Interpretation
Across the key valuation dimensions, RPM International presents a lower-margin materials and mining business where revenue scale and cost discipline are critical to value creation within Chemicals. Positive but modest profitability reflects a competitive operating environment where incremental efficiency gains carry outsized importance. The data points to a business where current multiples are less informative because underlying profitability has not been established. A re-rating depends on production economics, commodity assumptions, and forward margin expectations.
Each of the valuation dimensions above captures a different angle on RPM International, and their combined signal matters more than any single metric. With leverage above industry norms, changes in interest costs or refinancing conditions can shift the valuation case materially.
Valuation Framework, Methodology & Assumptions
RPM International is a large-cap equity in Specialty Chemicals, Basic Materials, NYSE Composite categories. Growth expectations are weighed against macro conditions. Higher beta characteristics could amplify reactions to changes in economic conditions. RPM International currently trades at P/B of 3.98, P/S of 1.68, enterprise value (TTM) of 15.54 billion.
RPM International values are built from periodic company reporting and market reference feeds, with reporting definitions aligned before display. Professional analyst research is incorporated when coverage is available. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board
Growth Indicators
Growth-focused analysis of RPM International matters because high expectations can support outsized upside but also sharper repricing when execution slips. In practice, growth analysis separates durable compounding from optimism that may already be fully priced in.
| Common Stock Shares Outstanding | 128.2 million | |
| Forward Price Earnings | 16.6389 |
RPM International Current Valuation Indicators
A net-worth review of RPM International links market cap to balance-sheet health, cash flow, and implied growth expectations. Earnings multiples, cash-flow yields, and asset-based measures work best as a group rather than in isolation. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.