olivLaw · US equity research
RPM International Inc. RPM
Paints, Varnishes, Lacquers, Enamels & Allied Prods · SIC 2851 · Vertical: Chemicals and allied products (SIC 28xx)
RPM International makes and sells specialty coatings, paints, roofing systems, sealants and adhesives for construction, industrial and consumer markets, with net sales of 7.9 billion USD in fiscal 2026. The company is now in a period of organic growth in its PCG and Consumer segments while construction demand stays soft, and management raised its fiscal 2027 outlook for sales and adjusted EBITDA.
At the close of 04 Nov 2026, RPM International Inc. (RPM) stock was 109.05 USD (+3.51% on the day), with market capitalisation 13.9 bn USD, P/E 20.2 on diluted EPS of 5.41 USD over the last 12 months, dividend yield 1.31%, beta 0.91, 52-week range 93.23–120.17 USD. Latest reported quarter (Q1 2027): revenue of 2.2 bn USD (+4.8% YoY), net income of 256.4 m USD (+12.6% YoY), diluted EPS 2.01 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 67.2
- strong (55–70)
- Bollinger (20, 2)
- 94.29 – 107.05
- above the upper band · %B 1.16 · band width 12.7%
- SMA 50 / 200
- 100.79 / 105.24
- mixed trend
- MACD (12, 26, 9)
- 1.43 / 0.28
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.4% | −1.1% | +15.5 pp | — |
| 3 months | −6.6% | −0.5% | −6.1 pp | — |
| 6 months | +6.5% | +4.4% | +2.1 pp | — |
| Year to date | +4.9% | +12.3% | −7.5 pp | — |
| 1 year | +0.9% | +13.5% | −12.7 pp | +28.5% |
| 3 years | +13.2% | +76.4% | −63.2 pp | +48.6% |
| 5 years | +21.5% | +63.7% | −42.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 31 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 1.5 bn | 2.1 bn | 2.1 bn | 1.9 bn | 1.6 bn | 2.2 bn | 2.2 bn |
| Cost of revenue | 1.1 bn | 909.1 m | 1.2 bn | 1.2 bn | 1.1 bn | 973.1 m | 1.3 bn | 1.3 bn |
| Gross profit | 764.5 m | 567.5 m | 881.8 m | 893.2 m | 780.2 m | 634.8 m | 950.0 m | 914.0 m |
| SG&A | 529.8 m | 501.7 m | 592.8 m | 573.5 m | 549.5 m | 533.9 m | 635.3 m | 559.8 m |
| Depreciation & amortisation | 46.6 m ≈ | 47.3 m ≈ | 53.7 m | 51.5 m | 52.0 m ≈ | 52.3 m ≈ | 57.7 m | 53.1 m |
| Interest expense | 23.2 m | 23.0 m | 25.9 m | 29.3 m | 28.0 m | 26.9 m | 27.3 m | 25.5 m |
| Pre-tax income | 213.0 m | 41.0 m | 248.4 m | 298.0 m | 211.0 m | 69.3 m | 292.0 m | 337.1 m |
| Income tax | 29.5 m | -11.4 m | 22.4 m | 70.2 m | 49.5 m | 17.7 m | 70.4 m | 80.4 m |
| Net income | 183.2 m | 52.0 m | 225.8 m | 227.6 m | 161.2 m | 51.4 m | 221.2 m | 256.4 m |
| Diluted EPS | 1.42 | 0.40 | 1.77 ≈ | 1.77 | 1.26 | 0.40 | 1.74 ≈ | 2.01 |
| Operating cash flow | 279.4 m ≈ | 91.5 m ≈ | 149.2 m | 237.5 m | 345.7 m ≈ | 73.5 m ≈ | 242.0 m | 263.9 m |
| Capex | 50.0 m ≈ | 58.2 m ≈ | 71.0 m | 62.5 m | 49.3 m ≈ | 47.8 m ≈ | 63.9 m | 58.5 m |
| Dividends paid | 65.6 m ≈ | 65.6 m ≈ | 65.5 m | 64.5 m | 69.2 m ≈ | 69.1 m ≈ | 68.9 m | 68.1 m |
| Share repurchases | 17.5 m ≈ | 17.5 m ≈ | 17.5 m | 17.5 m | 17.5 m ≈ | 17.5 m ≈ | 25.0 m | 22.4 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 8 percentile of its own 40-quarter history (min 17.8, median 25.0, max 41.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.6 bn | 5.5 bn | 6.1 bn | 6.7 bn | 7.3 bn | 7.3 bn | 7.4 bn | 7.9 bn |
| Revenue YoY | +4.6% | −1.0% | +10.9% | +9.8% | +8.2% | +1.1% | +0.5% | +6.7% |
| Net income | 266.6 m | 304.4 m | 502.6 m | 491.5 m | 478.7 m | 588.4 m | 688.7 m | 661.4 m |
| Net income YoY | −21.1% | +14.2% | +65.1% | −2.2% | −2.6% | +22.9% | +17.0% | −4.0% |
| Diluted EPS | 2.01 | 2.34 | 3.87 | 3.79 | 3.72 | 4.56 | 5.35 | 5.17 |
| Diluted EPS YoY | −19.6% | +16.4% | +65.4% | −2.1% | −1.8% | +22.6% | +17.3% | −3.4% |
| net % | 4.8% | 5.5% | 8.2% | 7.3% | 6.6% | 8.0% | 9.3% | 8.4% |
| Free cash flow | 156.2 m | 402.2 m | 609.0 m | -43.7 m | 322.7 m | 908.3 m | 538.3 m | 675.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 May 2026
- Cash
- 315.2 m USD
- Financial debt
- 407.8 m USD
- Net debt
- 92.6 m USD
- Equity
- 3.3 bn USD
- Total assets
- 8.3 bn USD
- Debt / equity
- 0.12x
- Current ratio
- 1.68x
- ROE
- 21.3%
- ROA
- 8.2%
- FCF margin
- 8.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 6.1 bn | 6.7 bn | 7.3 bn | 7.3 bn | 7.4 bn | 7.9 bn | SEC (XBRL)· 22 Jul 2026verified |
| Cost of revenue | 3.7 bn | 4.3 bn | 4.5 bn | 4.3 bn | 4.3 bn | 4.6 bn | SEC (XBRL)· 22 Jul 2026verified |
| Gross profit | 2.4 bn | 2.4 bn | 2.7 bn | 3.0 bn | 3.1 bn | 3.3 bn | SEC (XBRL)· 22 Jul 2026verified |
| Research & development | 77.6 m | 80.5 m | 86.6 m | 92.2 m | 94.7 m | 97.9 m | SEC (XBRL)· 22 Jul 2026verified |
| SG&A | 1.7 bn | 1.8 bn | 2.0 bn | 2.1 bn | 2.2 bn | 2.3 bn | SEC (XBRL)· 22 Jul 2026verified |
| Depreciation & amortisation | 146.9 m | 153.1 m | 154.9 m | 171.3 m | 193.8 m | 213.5 m | SEC (XBRL)· 22 Jul 2026verified |
| Interest expense | 85.4 m | 87.9 m | 119.0 m | 118.0 m | 96.5 m | 111.5 m | SEC (XBRL)· 22 Jul 2026verified |
| Pre-tax income | 668.4 m | 606.8 m | 649.4 m | 787.8 m | 792.8 m | 870.3 m | SEC (XBRL)· 22 Jul 2026verified |
| Income tax | 164.9 m | 114.3 m | 169.7 m | 198.4 m | 102.4 m | 207.9 m | SEC (XBRL)· 22 Jul 2026verified |
| Net income | 502.6 m | 491.5 m | 478.7 m | 588.4 m | 688.7 m | 661.4 m | SEC (XBRL)· 22 Jul 2026verified |
| Diluted EPS | 3.87 | 3.79 | 3.72 | 4.56 | 5.35 | 5.17 | SEC (XBRL)· 22 Jul 2026verified |
| Weighted average diluted shares | 128.9 m | 129.6 m | 128.8 m | 128.3 m | 128.2 m | 127.6 m | SEC (XBRL)· 22 Jul 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 246.7 m | 201.7 m | 215.8 m | 237.4 m | 302.1 m | 315.2 m | SEC (XBRL)· 22 Jul 2026verified |
| Receivables | 1.3 bn | 1.4 bn | 1.5 bn | 1.4 bn | 1.5 bn | 1.7 bn | SEC (XBRL)· 22 Jul 2026verified |
| Inventories | 938.1 m | 1.2 bn | 1.1 bn | 956.5 m | 1.0 bn | 1.1 bn | SEC (XBRL)· 22 Jul 2026verified |
| Current assets | 2.8 bn | 3.2 bn | 3.2 bn | 2.9 bn | 3.2 bn | 3.5 bn | SEC (XBRL)· 22 Jul 2026verified |
| Property, plant & equipment, net | 965.2 m | 1.1 bn | 1.2 bn | 1.3 bn | 1.5 bn | 1.6 bn | SEC (XBRL)· 22 Jul 2026verified |
| Goodwill | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 22 Jul 2026verified |
| Intangibles (excl. goodwill) | 628.7 m | 592.3 m | 555.0 m | 513.0 m | 780.8 m | 824.6 m | SEC (XBRL)· 22 Jul 2026verified |
| Total assets | 6.3 bn | 6.7 bn | 6.8 bn | 6.6 bn | 7.8 bn | 8.3 bn | SEC (XBRL)· 22 Jul 2026verified |
| Accounts payable | 717.2 m | 800.4 m | 680.9 m | 649.7 m | 755.9 m | 853.5 m | SEC (XBRL)· 22 Jul 2026verified |
| Short-term debt | 1.3 m | 603.5 m | 178.6 m | 136.2 m | 7.7 m | 407.8 m | SEC (XBRL)· 22 Jul 2026verified |
| Current liabilities | 1.3 bn | 2.0 bn | 1.5 bn | 1.5 bn | 1.5 bn | 2.1 bn | SEC (XBRL)· 22 Jul 2026verified |
| Equity | 1.7 bn | 2.0 bn | 2.1 bn | 2.5 bn | 2.9 bn | 3.3 bn | SEC (XBRL)· 22 Jul 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 766.2 m | 178.7 m | 577.1 m | 1.1 bn | 768.2 m | 898.7 m | SEC (XBRL)· 22 Jul 2026verified |
| Capex | 157.2 m | 222.4 m | 254.4 m | 214.0 m | 229.9 m | 223.5 m | SEC (XBRL)· 22 Jul 2026verified |
| Free cash flow | 609.0 m ≈ | -43.7 m ≈ | 322.7 m ≈ | 908.3 m ≈ | 538.3 m ≈ | 675.2 m ≈ | SEC (XBRL)· 22 Jul 2026derived |
| Investing cash flow | -326.4 m | -259.5 m | -249.7 m | -206.4 m | -825.5 m | -417.2 m | SEC (XBRL)· 22 Jul 2026verified |
| Financing cash flow | -459.6 m | 57.4 m | -301.2 m | -890.0 m | 121.9 m | -482.2 m | SEC (XBRL)· 22 Jul 2026verified |
| Dividends paid | 194.7 m | 204.4 m | 213.9 m | 231.9 m | 255.6 m | 271.7 m | SEC (XBRL)· 22 Jul 2026verified |
| Share repurchases | 50.0 m | 52.5 m | 50.0 m | 55.0 m | 70.0 m | 77.5 m | SEC (XBRL)· 22 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 65 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 13.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet80
- Valuation73
- Quality70
- Growth50
- Returns62
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.56 – 232.50 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)78.42 – 120.30 (Mid 94.68)WACC 9.2% · starting FCFF 787.5 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 9.0%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E111.23 – 232.50 (Mid 186.56)25 companies used · median multiple 34.5x · quartiles 20.6x – 43.0xABBV, ABT, ALNY, AMGN, BMY, CF, CHD, CL, DD, ECL, EXEL, IDXX, JNJ, KVUE, LIN, LLY, LYB, PFE, PG, PPG, REGN, RPRX, UTHR, VRTX, ZTS
- Dividend discount (DDM)16.56 – 22.27 (Mid 18.99)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 65/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 8.7% | 39 (vs peers) | 10% |
| FCF conversion · Quality | 102.2% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 2.7% | 23 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 11.6% | 77 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.8x | 80 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 20.2x | 80 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 5.1% | 63 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 2.6% | 37 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 39.0% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial80/100 · 1/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality70/100 · 2/3 factors with a value
- Returns62/100 · 2/2 factors with a value
- Valuation73/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RPM International Inc. (RPM). Latest full fiscal year: 2026; data up to 2026-08-31.
Figures computed from the financial statements: revenue 7.9 bn USD in 2026; YoY growth 6.7%; net margin 8.7%; ROE 21.1%.
The estimated value range is 78.42–120.30 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 94.68 USD, the price of 109.05 USD leaves a potential of -13.2% (value / price − 1) and a margin of safety of -15.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 65/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 102.2%
- EPS CAGR 3Y: 11.6%
- Current ratio: 1.8x
- P/E (TTM): 20.2x
- Payout ratio (FCF): 39.0%
What contradicts it
- Revenue CAGR 3Y: 2.7%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Chemicals and allied products (SIC 28xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,334.0 bn | 46.0 | 86.1% | 31.9% | +44.7% | +32% / +140% |
| JNJJohnson & Johnson | 665.2 bn | 41.9 | 20.0% | 16.2% | +6.0% | +34% / +79% |
| ONCBeone Medicines Ltd. | 558.4 bn | 869.9 | 14.7% | 10.7% | +40.2% | +11% / +102% |
| ABBVAbbVie Inc. | 521.1 bn | 50.7 | — | 15.7% | +8.6% | +29% / +107% |
| PGPROCTER & GAMBLE Co | 387.8 bn | 25.2 | 29.4% | 18.2% | +3.3% | +13% / +9% |
| MRKMerck & Co., Inc. | 370.7 bn | 154.7 | 5.1% | 3.6% | +1.3% | +43% / +47% |
| AMGNAmgen Inc. | 258.8 bn | 27.7 | 78.4% | 24.1% | +10.0% | +39% / +77% |
| LINLinde plc | 240.9 bn | 34.9 | 18.0% | 19.3% | +3.0% | +28% / +27% |
| GILDGilead Sciences, Inc. | 216.4 bn | — | -22.3% | -12.5% | +2.4% | +39% / +128% |
| ABTAbbott Laboratories | 200.1 bn | 43.0 | 9.2% | 9.7% | +5.7% | −10% / +11% |
| PFEPfizer Inc | 175.5 bn | 43.9 | 4.4% | 6.3% | −1.6% | +20% / +1% |
| VRTXVertex Pharmaceuticals Inc | 139.2 bn | 35.3 | 20.8% | 30.7% | +8.9% | +27% / +55% |
| BMYBristol-Myers Squibb Company | 131.2 bn | 14.2 | 44.1% | 18.5% | −0.2% | +30% / +30% |
| MRNAModerna, Inc. | 103.2 bn | — | -39.0% | -141.4% | −39.9% | +895% / +233% |
| ECLEcolab Inc. | 88.4 bn | 42.9 | 20.7% | 12.0% | +2.2% | +14% / +64% |
| CLColgate-Palmolive Company | 78.5 bn | 38.7 | 358.9% | 9.6% | +1.4% | +23% / +25% |
| APDAir Products And Chemicals, Inc. | 71.0 bn | — | -0.3% | -0.4% | −0.5% | +22% / +18% |
| IDXXIdexx Laboratories Inc | 55.0 bn | 47.1 | 68.9% | 25.4% | +10.4% | −7% / +50% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.4 | 6.6% | 3.6% | +4.3% | +56% / +326% |
| RVMDRevolution Medicines, Inc. | 43.2 bn | — | -93.6% | -946.8% | unavailable | +157% / +756% |
| BIIBBiogen Inc. | 37.6 bn | 108.8 | 1.9% | 3.4% | +2.2% | +40% / +9% |
| KVUEKenvue Inc. | 37.1 bn | 21.9 | 16.3% | 10.9% | −2.1% | +34% / +4% |
| ZTSZoetis Inc. | 36.9 bn | 14.7 | 64.4% | 27.5% | +2.3% | −30% / −50% |
| PPGPpg Industries Inc | 28.1 bn | 18.2 | 19.3% | 9.4% | +0.2% | +27% / −10% |
| ROIVRoivant Sciences Ltd. | 27.6 bn | — | -6.2% | -3,535.0% | −71.6% | +84% / +300% |
1- and 3-year price returns: for RPM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 63.31 Total return -42% · Per year -42% | 112.03 Total return 3% · Per year 3% | 168.88 Total return 55% · Per year 55% |
| 3 years | 59.26 Total return -46% · Per year -18% | 118.19 Total return 8% · Per year 3% | 195.94 Total return 80% · Per year 22% |
| 5 years | 55.47 Total return -49% · Per year -13% | 124.70 Total return 14% · Per year 3% | 227.34 Total return 108% · Per year 16% |
- Exit P/E± 29.55
- Net margin± 20.68
- Annual revenue growth± 17.27
- Annual dilution± 1.74
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
RPM International makes and sells specialty coatings, paints, roofing systems, sealants and adhesives for construction, industrial and consumer markets, with net sales of 7.9 billion USD in fiscal 2026 1. The company is now in a period of organic growth in its PCG and Consumer segments while construction demand stays soft, and management raised its fiscal 2027 outlook for sales and adjusted EBITDA 3.
SWOT
Strengths
- A broad portfolio of well-known brands and an extensive global presence with operations in dozens of countries 1.
- Rising operating margins and solid operating cash flow, used for debt reduction and shareholder returns 23.
- A diversified three-segment structure that reduces dependence on any single economic cycle 1.
Weaknesses
- The CPG segment posted negative organic growth in the first quarter of fiscal 2027, showing exposure to commercial construction 3.
- Total debt remains significant relative to equity, and a high debt load limits financial flexibility 1.
- Warranty costs and customer credit risk can pressure results in some business lines 23.
Opportunities
- Growing demand for high-performance building and infrastructure solutions in emerging markets, where the company reported growth above 20% 3.
- Acquisitions that extend the portfolio, such as Volteco in waterproofing, could add growth in the CPG segment 3.
- Consolidation of the fragmented paint and sealant market could open acquisition opportunities 1.
Threats
- Raw material inflation, tariffs and supply chain disruptions could reduce margins if prices cannot be raised enough 12.
- High interest rates and more cautious lending could reduce demand from construction and renovation 1.
- Currency fluctuations affect sales and reported results in dollars, given the share of foreign operations 1.
Risks
- Sensitivity to the construction cyclehigh
Demand for the company's products depends on construction and renovation activity, which could decline if financing becomes more expensive 1.
- Cost inflation and margin pressurehigh
Rising raw material, labour and tariff costs could compress margins, and pricing may not fully offset them 12.
- Indebtedness and access to capitalmedium
A high debt level could limit flexibility and raise financing costs, especially if the credit rating were downgraded 1.
- Goodwill and intangible asset impairmentmedium
Significant goodwill and intangible assets could lead to impairment charges if reporting units fail to meet their carrying values 1.
- Currency exposuremedium
Exchange rates can affect sales, profit and the value of assets outside the United States, given the weight of international operations 1.
Investment thesis
What would need to be true (bull case)
- If the PCG and Consumer segments sustain organic growth and MAP efficiencies continue, margins could gradually recover toward earlier levels.
- Growth in emerging markets and strong brands could support long-term sales even in a difficult economic environment.
- Rising operating cash flow could allow debt reduction and shareholder returns, which would strengthen the balance sheet.
What would break the thesis
- If the CPG segment does not recover, overall results could remain below expectations, especially in healthcare and education.
- If cost inflation persists and prices cannot be raised enough, margins could stay under pressure through the year.
- Significant debt and the risk of goodwill impairment could limit options if the economic environment worsens.
What to watch
- Return of organic growth in the CPG segmentQ2 fiscal 2027
- Gross margin trend and the effect of pricing to offset inflationQ2 fiscal 2027
- Investor day presentation on strategy and medium-term targetsNovember 2026
- Annual results and any update to the fiscal 2027 outlooknext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
RPM International Inc., a Delaware corporation headquartered in Medina, Ohio, operates through subsidiaries that manufacture and sell specialty chemical product lines: high-performance paints, infrastructure repair products, protective coatings, roofing systems, sealants and adhesives 1. Brands include Tremco, Carboline, Rust-Oleum, DAP, Stonhard and Zinsser 1. Since June 2025 the company reports three segments instead of four after an internal realignment 1.
The company sells products in about 167 countries and territories and operates roughly 120 manufacturing locations, many outside the United States 1. About 31% of sales come from international markets, and in total foreign operations represent 29.8% of net sales 1. Customers include contractors, distributors, industrial manufacturers, public institutions and do-it-yourself consumers 1.
The model combines strong brands with a services network, for example roofing and building maintenance work performed by the Weatherproofing Technologies subsidiary 1. In the first quarter of fiscal 2027 the company also announced the acquisition of Volteco, an Italian supplier of below-grade waterproofing solutions, for its CPG segment 3.
Segments
Performance Coatings Group (PCG)
PCG covers about 27% of sales and includes industrial flooring, corrosion-control and fireproofing coatings, and food-industry coatings 1. It has been the fastest-growing segment recently, with record sales and strong organic growth in the first quarter of fiscal 2027, particularly in emerging markets 3.
Market context
The company describes the paints, coatings, adhesives and sealants market as fragmented and consolidating, with relatively high barriers to entry because of long development cycles and the importance of brand identity 1. Demand depends on construction activity, residential renovation and industrial cycles, and companies like RPM could benefit from sector consolidation if they keep a broad product range 1.
Cost pressure is significant: raw material inflation and tariffs cut the gross profit margin to 41.3% in the first quarter of fiscal 2027, down from 42.3% a year earlier 2. Management expects inflationary headwinds to be reflected in results throughout fiscal 2027 2.
Trends
- Slow recovery in commercial constructionheadwind
Commercial and residential construction activity remains weak, and high interest rates could make lenders more cautious; if demand does not recover, the CPG segment could stay under pressure 13.
- Expansion of the Platform model in emerging marketstailwind
Strong growth in emerging markets, driven by high-performance building and infrastructure solutions, suggests the Platform model could accelerate regional growth 3.
- Cost inflation and tariffsheadwind
Raw material inflation, supply shortages and tariffs are compressing margins, although price increases partly offset these pressures 23.
- The MAP efficiency programmemixed
The MAP 2025 initiatives for SG&A, manufacturing and procurement supported record adjusted EBITDA, and could keep supporting margins if sustained 23.
Competitive position
The company says its markets are fragmented and that no single competitor faces it across all products 1. Many competitors have greater financial resources and larger sales forces than RPM, though the company does not believe it holds a significant share of the worldwide protective coatings market 1.
Competition comes from local, regional, national and multinational firms, with different weight in each product line 1. In consumer products RPM faces players that hold large shelf space at home improvement retailers, and in construction it faces specialised sealant and roofing companies 1.
- Sherwin-WilliamsSHW
US paint and coatings maker active in both construction and industrial markets, representative of competition in the coatings segment.
- PPG IndustriesPPG
Maker of industrial and transportation coatings with strength in corrosion protection, a product line where RPM is also active.
- H.B. FullerFUL
Adhesives and sealants company for construction and industry, a direct competitor on RPM's sealant and adhesive lines.
- MascoMAS
Group that owns the Behr paint brand and home products, competing in the consumer and renovation segment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report13 Oct 2026Shareholder vote · Other events · Financial statements and exhibits
- Quarterly report06 Oct 2026
- Current report06 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement25 Aug 2026
- Annual report22 Jul 2026
- Current report22 Jul 2026Results of operations · Departure or appointment of officers · Other events · Financial statements and exhibits
- Current report02 Jun 2026Material agreement · Departure or appointment of officers
- Current report23 Apr 2026Departure or appointment of officers · Other events · Financial statements and exhibits
- Quarterly report08 Apr 2026
- Current report08 Apr 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-05-31 · SEC / RPM International Inc. · 22 Jul 2026
- [2] Form 10-Q, quarter ended 2026-08-31 · SEC / RPM International Inc. · 06 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / RPM International Inc. · 06 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.