| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 18.9x | 17.3x | Around median | |
Growth | 46 | 4.6% | 7.1% | Around median | |
Quality | 75 | 11.6% | 4.5% | Top tier | |
Safety | 69 | 2.1x | 2.6x | Top tier | |
Capital Return | 86 | 2.17% | 0.06% | Top tier | |
Momentum | 43 | -13.1% | -1.6% | Around median | |
Sentiment | 85 | 10 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
58% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RPM International sells specialty chemicals, coatings, and solutions for protecting and maintaining buildings and facilities through its Construction Products, Performance Coatings, and Consumer groups. Its businesses include Tremco roofing and waterproofing solutions, WTI contracting services, Zinsser primers, The Pink Stuff cleaners, and Ready Seal exterior wood stains. It generates revenue from selling these products and providing related services, with demand drivers varying across industrial spending, construction projects, and consumer purchases through retail stores and digital channels.
Revenue reached $2.2 billion in quarter 1 of fiscal year 2026, ended 2026-08-31, up 4.8% from the same quarter a year earlier, when revenue was $2.1 billion in the quarter ended 2025-08-31. Quarter 1 of fiscal year 2026 generated net income of $256.4 million and diluted earnings per share of $2.01, compared with net income of $227.6 million and diluted earnings per share of $1.77 in the quarter ended 2025-08-31. However, gross margin declined to 41.3% from 42.3% over the same annual comparison, a decrease of 1.0 percentage point, showing that sales and earnings growth coincided with pressure on sales profitability before operating expenses.
Management explained on the 2026-10-06 call that the performance mix relied on strength in the Performance Coatings Group and improvement in Consumer products to offset weakness in Construction Products. The former benefited from high-performance building, energy, and infrastructure projects, while the latter benefited from additional shelf space and new products and sales channels. Meanwhile, Tremco and WTI faced delays in education and healthcare projects and shortages of some polyurethane-related products. According to EL7 data, operating cash flow reached $263.9 million in quarter 1 of fiscal year 2026, ended 2026-08-31; over the last 12 months through 2026-08-31, revenue totaled $7.9 billion and net income was $661.4 million.
Q1 FY2026 (2026-08)
Last 12 months to
When: Quarter 2 of fiscal year 2027
Raw material inflation at the upper end of guidance of 11%
Selling price increases achieving the expected minimum of 2.5%
When: 2027-01-07
The median analyst target is $124 within a range of $107–147 among 10 analysts, an estimate that incorporates expected growth and is inherently inclined toward optimism. The industry-multiple value is $88 within a range of $59–118, based on next year's earnings and a median multiple of 14.1 times among 43 companies, measuring RPM's pricing in line with comparable companies. The discounted cash flow model gives a value of $60 within a range of $47–81 at a discount rate of 9.8%, measuring the cash expected to be generated and tending to be conservative by nature, while the no-growth value is $40 at the same discount rate, representing after-tax operating profit remaining constant forever. The analyst target and industry-multiple ranges overlap, as do the industry-multiple and discounted cash flow ranges, but the central values diverge because the first prices growth expectations, the second peer comparisons, the third cash generated, and the fourth what remains if growth stops. On 2026-10-07, BMO Capital lowered its target to $147 from $151.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
The Performance Coatings Group is linked to industrial spending and manufacturing, data center, energy, and infrastructure projects, according to the 2026-10-06 call. The Construction Products Group is more affected by roofing, insulation, and commercial projects, with education and healthcare together representing more than a quarter of its end markets. The Consumer Group sells products such as The Pink Stuff, Zinsser, and Ready Seal through retail and digital channels. These different uses help explain how strength in coatings and Consumer products offset weakness in Construction Products in the results discussed on the call.
Net income reached $256.4 million in quarter 1 of fiscal year 2026, ended 2026-08-31, compared with $227.6 million in the quarter ended 2025-08-31. Over the same comparison, gross margin declined to 41.3% from 42.3% amid raw material cost pressure. Management explained on the 2026-10-06 call that higher sales, improvements in selling, general, and administrative expenses, and MAP initiatives helped offset operating pressures. Performance therefore combines earnings growth with pressure on sales profitability, and higher net income does not mean the cost problem has disappeared.
Automated analysis for informational purposes only — not investment advice.
Management saw no improvement in housing turnover or shopper traffic at its major retail customers on the 2026-10-06 call. Nevertheless, the group recorded organic growth of 5.2% from the same quarter a year earlier, supported by shelf-space gains and new products and channels. Drivers of improvement included The Pink Stuff, Ready Seal, and Zinsser's expansion, alongside abrasive products and digital sales. Continued growth therefore depends more on RPM's ability to retain market-share gains than on a broad recovery in end demand.
According to EL7 data, operating cash flow reached $898.7 million for the last 12 months through 2026-08-31, equivalent to 136% of net income of $661.4 million for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) totaled $675.2 million for the last 12 months through 2026-08-31, compared with share repurchases of $77.5 million for the same period. On 2026-10-08, RPM announced a 5.6% increase in its quarterly cash dividend to $0.57 per share. These figures support the business's cash-generating ability, while debt servicing and acquisition funding remain competing uses of cash.
RPM announced an agreement to acquire Volteco on 2026-09-23 to expand its waterproofing technologies, particularly for foundations and below-grade areas. Management then confirmed on the 2026-10-06 call that the acquisition closed in early October 2026 and that Volteco joined the Construction Products Group. The Italian company adds technology complementary to waterproofing solutions used in applications requiring high performance. The integration's earnings impact, however, requires operating results to emerge, and completing the transaction alone does not imply a specific amount of improvement.
The expected earnings announcement date is 2027-01-07, and the test centers on passing through inflation and sustaining business growth. In guidance for quarter 2 of fiscal year 2027 discussed on the 2026-10-06 call, management estimated raw material inflation between 9% and 11% and selling price increases between 2.5% and 3.5%. Continued gains for The Pink Stuff and Zinsser and improvement in the Construction Products Group after addressing polyurethane supply shortages through production measures also matter. The results will show whether pricing and expense-reduction measures protect profitability while inventory and WTI's order book are rebuilt.