One-glance verdict
Overvalued
$63.55 our estimate vs market $110.68
Wall Street consensus: $128.86 (102.8% higher than our fair-value estimate)
74% above our estimate, beyond the bull case
Fundamentals snapshot
RPM International Inc.
RPM · NYQ · Basic Materials · Specialty Chemicals
Current price
$110.68
52-week range
$92.92 - $129.12
Market cap
$14.18B
Balance sheet
Watch
9.32x Adequate
Net debt $2.60B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 22.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Operating margin compressed from 9.6% to 6.4% over 3 years.
What this company does
RPM International Inc.
RPM International sells a wide range of specialty products, from industrial-strength roofing and flooring to paints and sealants you'd find at a hardware store. The company makes money from both giant construction projects and small home repairs, which matters because buildings always need to be built or maintained, providing a steady business.
How the company got here
RPM International began in 1947 as Republic Powdered Metals, founded by Frank C. Sullivan, who started by selling a single product: a heavy-duty aluminum roof coating. A key turning point was in 1971 when the company formed a holding company structure (a parent company that owns other companies' stock) to aggressively acquire other businesses in the consolidating paint and coatings industry. This strategy of growing by buying other companies has been central to its expansion, completing around 175 acquisitions over the last 30 years. This approach has transformed it from a small, single-product business into a global leader in specialty coatings, sealants, and building materials.
What it actually does
RPM makes specialty coatings, sealants, and building materials for both professionals and do-it-yourself (DIY) home improvement projects. You might recognize some of their consumer brands like Rust-Oleum paints, DAP caulks, and Varathane wood stains from the shelves of home improvement and hardware stores. Beyond homes, their industrial products are used to protect and maintain everything from large commercial buildings and infrastructure like bridges to famous landmarks. Essentially, their products are designed to protect, seal, and beautify a wide variety of surfaces and structures.
Construction Products Group
This is RPM's largest business segment, making up about 39% of the company's sales. It provides products for large-scale construction, maintenance, and restoration projects, selling to distributors and contractors rather than directly to the general public. This includes high-performance roofing and waterproofing systems, sealants, concrete admixtures (chemicals added to concrete to change its properties), and flooring systems. You would find their products used on everything from casinos in Las Vegas to iconic structures like the Sydney Opera House.
Consumer Group
This segment creates the products you'd typically find in a home improvement store for do-it-yourself (DIY) projects and professional use. It is a significant part of the business, generating about a third of the company's total sales. This group includes well-known brands like Rust-Oleum for rust-preventative and small project paints, DAP for caulks and sealants, and Zinsser for primers. These products are sold through mass retailers, home improvement centers, and hardware stores to everyday consumers and professional painters.
Performance Coatings Group
The Performance Coatings Group provides highly durable coatings and flooring for industrial and commercial environments. These products are designed to withstand harsh conditions, such as heavy traffic, chemicals, and corrosion, and are sold to contractors, distributors, and directly to facility owners. For example, this segment makes seamless epoxy flooring for hospitals, corrosion-control coatings used to protect structures like the Burj Khalifa, and fiberglass grating used on NASA's training platforms. This part of the company focuses on specialized solutions where performance and durability are critical.
What management is betting on now
Management's strategy focuses on growth through acquiring other companies and developing new, innovative products. They recently completed a major operational improvement plan called "MAP 2025" to increase efficiency and profitability (the ability to make a profit). As part of this, they streamlined their organization from four business segments to three to improve collaboration and reduce costs. The company is also focused on expanding its global presence and investing in sustainable products that are better for the environment.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$105.28M
FY2025 Q1
$197.32M
FY2025 Q2
$229.46M
FY2025 Q3
$33.31M
FY2025 Q4
$78.17M
FY2026 Q1
$175.05M
FY2026 Q2
$296.36M
FY2026 Q3
$25.62M
Revenue
$1.61B
Net income
$51.36M
Diluted EPS
0.40
Operating cash flow
$73.46M
Free cash flow
$25.62M
Fetching…
Sources
Revenue
$1.91B
Net income
$161.21M
Diluted EPS
1.26
Operating cash flow
$345.70M
Free cash flow
$296.36M
Fetching…
Sources
Revenue
$2.11B
Net income
$227.60M
Diluted EPS
1.77
Operating cash flow
$237.51M
Free cash flow
$175.05M
Fetching…
Sources
Revenue
$2.08B
Net income
$225.76M
Diluted EPS
1.76
Operating cash flow
$149.18M
Free cash flow
$78.17M
Fetching…
Sources
Revenue
$1.48B
Net income
$52.03M
Diluted EPS
0.40
Operating cash flow
$91.50M
Free cash flow
$33.31M
Fetching…
Sources
Revenue
$1.85B
Net income
$183.20M
Diluted EPS
1.42
Operating cash flow
$279.45M
Free cash flow
$229.46M
Fetching…
Sources
Revenue
$1.97B
Net income
$227.69M
Diluted EPS
1.77
Operating cash flow
$248.06M
Free cash flow
$197.32M
Fetching…
Sources
Revenue
$2.01B
Net income
$180.61M
Diluted EPS
1.40
Operating cash flow
$181.16M
Free cash flow
$105.28M
Fetching…
Sources
Is it cheap or expensive?
Fair value $63.55 vs current price $110.68
Wall Street consensus is the average analyst price target: $128.86 (102.8% higher than our fair-value estimate).
Our most-likely fair value is $63.55 a share — about 42.6% below today's price of $110.68, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $2.6B. Interest coverage 9.3x.
Net debt
$2.60B
Interest coverage
9.32x
RPM International Inc.'s profit covers its interest bill about 9.3 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
RPM
BASELINE
RPM International Inc.
Total debt $2.90B Interest coverage 9.32x This is the baseline the peer rows are being compared against.
Total debt $7.74B Interest coverage 9.00x -3% vs RPM Has roughly the same debt cushion as RPM.
Total debt $14.60B Interest coverage 8.16x -12% vs RPM Has roughly the same debt cushion as RPM.
Total debt $3.15B Interest coverage 4.18x -55% vs RPM Carries about 2.2x less debt cushion than RPM.
Total debt $2.21B Interest coverage 2.83x -70% vs RPM Carries about 3.3x less debt cushion than RPM.
Total debt $1.15B Interest coverage 5.02x -46% vs RPM Carries about 1.9x less debt cushion than RPM.
What you should know
The case for and against RPM
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.6% last year.
-
Returns 22.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Operating margin compressed from 9.6% to 6.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.33x
Forward P/E
18.70x
P/B
4.50x
P/S
1.84x
EV/EBITDA
14.51x
PEG ratio
1.88x
Profitability
How much profit each dollar creates
Gross margin
41.4%
Operating margin
6.4%
Net margin
8.6%
ROE
22.9%
ROA
8.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.92x
Current ratio
2.28x
Quick ratio
1.18x
Total debt
$2.90B
Total cash
$294.21M
Growth
How the business has been compounding
Revenue TTM
$7.71B
Revenue 5Y CAGR
4.8%
EPS TTM
5.19
EPS 5Y CAGR
12.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$805.85M
Free CF TTM
$538.26M
FCF margin
7.0%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
40.5%
Last ex-div date
2026-04-16