📊 RPM Key Takeaways
Is RPM a Good Investment? Thesis Analysis
RPM International demonstrates solid financial health with strong free cash flow generation ($497M), healthy profitability margins (41% gross, 10.3% operating), and manageable leverage (0.81x D/E). However, essentially flat revenue growth (0.5% YoY) and negligible earnings growth (0.4% YoY) indicate operational stagnation, with EPS growth driven by buybacks rather than fundamental business expansion.
RPM exhibits resilient profitability and strong cash generation, supported by healthy liquidity and manageable leverage. However, revenue growth is essentially flat and EPS outperformance versus net income suggests financial engineering or mix effects; a clearer path to organic growth acceleration and sustained margin expansion is needed before a more constructive view.
Why Buy RPM? Key Strengths
- Strong free cash flow generation of $497M with 8.8% FCF margin demonstrates reliable cash conversion
- Healthy and stable profitability: 41% gross margin and 10.3% operating margin indicate operational efficiency
- Solid balance sheet with moderate leverage (0.81x D/E), strong interest coverage (6.9x), and excellent liquidity (2.28x current ratio)
- Consistent operating cash flow of $656.7M provides financial flexibility for debt service and shareholder returns
- Solid margins with disciplined cost control (41% gross, 10.3% operating)
- Strong liquidity and manageable leverage (2.28x current, 6.9x interest coverage)
- Healthy free cash flow (8.8% margin) supporting reinvestment and debt service
RPM Investment Risks to Consider
- Stagnant revenue growth (0.5% YoY) signals weak market demand and limited pricing power in mature industry
- Negligible earnings growth (0.4% YoY) with EPS growth driven by share buybacks, not operational expansion
- Mature industry (paints/coatings) with limited organic growth opportunities and potential cyclical exposure
- Debt load of $2.5B requires sustained cash flow generation to service - vulnerable to economic deterioration
- Muted top-line growth limits operating leverage and earnings momentum
- Raw material and energy cost volatility could compress margins
- Debt load may constrain flexibility if rates rise or demand softens
Key Metrics to Watch
- Revenue growth acceleration - sustainability of organic growth initiatives
- Operating margin trend - vulnerability to input cost inflation or competitive pricing pressure
- Free cash flow conversion and capital allocation decisions between debt reduction and shareholder returns
- Leverage ratios and debt service coverage - early warning of financial stress
- Organic revenue growth (YoY)
- Operating margin
RPM Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.28x current ratio provides a solid financial cushion.
RPM Profitability Ratios
RPM vs Default Sector
How RPM INTERNATIONAL INC/DE/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RPM Overvalued or Undervalued?
Based on fundamental analysis, RPM INTERNATIONAL INC/DE/ has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RPM Balance Sheet & Liquidity
RPM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: RPM INTERNATIONAL INC/DE/'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.72 reflects profitable operations.
RPM Growth Metrics (YoY)
RPM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.5B | $51.4M | $0.40 |
| Q2 2026 | $1.8B | $161.2M | $1.26 |
| Q1 2026 | $2.0B | $227.6M | $1.77 |
| Q3 2025 | $1.5B | $52.0M | $0.40 |
| Q2 2025 | $1.8B | $145.5M | $1.13 |
| Q1 2025 | $2.0B | $201.1M | $1.56 |
| Q3 2024 | $1.5B | $27.0M | $0.21 |
| Q2 2024 | $1.8B | $131.3M | $1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RPM Capital Allocation
RPM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for RPM INTERNATIONAL INC/DE/ (CIK: 0000110621)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RPM
What is the AI rating for RPM?
RPM INTERNATIONAL INC/DE/ (RPM) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RPM's key strengths?
Claude: Strong free cash flow generation of $497M with 8.8% FCF margin demonstrates reliable cash conversion. Healthy and stable profitability: 41% gross margin and 10.3% operating margin indicate operational efficiency. ChatGPT: Solid margins with disciplined cost control (41% gross, 10.3% operating). Strong liquidity and manageable leverage (2.28x current, 6.9x interest coverage).
What are the risks of investing in RPM?
Claude: Stagnant revenue growth (0.5% YoY) signals weak market demand and limited pricing power in mature industry. Negligible earnings growth (0.4% YoY) with EPS growth driven by share buybacks, not operational expansion. ChatGPT: Muted top-line growth limits operating leverage and earnings momentum. Raw material and energy cost volatility could compress margins.
What is RPM's revenue and growth?
RPM INTERNATIONAL INC/DE/ reported revenue of $5.6B.
Does RPM pay dividends?
RPM INTERNATIONAL INC/DE/ pays dividends, with $202.8M distributed to shareholders in the trailing twelve months.
Where can I find RPM SEC filings?
Official SEC filings for RPM INTERNATIONAL INC/DE/ (CIK: 0000110621) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RPM's EPS?
RPM INTERNATIONAL INC/DE/ has a diluted EPS of $3.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RPM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, RPM INTERNATIONAL INC/DE/ has a HOLD rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RPM stock overvalued or undervalued?
Valuation metrics for RPM: ROE of 14.0% (sector avg: 15%), net margin of 7.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy RPM stock in 2026?
Our dual AI analysis gives RPM INTERNATIONAL INC/DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RPM's free cash flow?
RPM INTERNATIONAL INC/DE/'s operating cash flow is $656.7M, with capital expenditures of $159.6M. FCF margin is 8.8%.
How does RPM compare to other Default stocks?
Vs Default sector averages: Net margin 7.8% (avg: 12%), ROE 14.0% (avg: 15%), current ratio 2.28 (avg: 1.8).