RPM International Inc.

Based on the provided analysis, here is a comprehensive assessment of RPM International Inc. (RPM).

Technical Analysis A conclusive technical view is not possible due to missing price data. While the beta of 1.102 indicates RPM's price movements are historically slightly more volatile than the market, the inability to see its current price relative to its 52-week range or identify overbought/oversold conditions limits short-term directional insight. The analysis is therefore incomplete without these critical data points.

Fundamentals RPM's fundamentals present a mixed picture. The company experienced a sequential decline in Q2 revenue and profit margins, signaling some near-term operational pressure. However, its financial health is robust, with strong liquidity and manageable debt levels supported by healthy cash flow. Operational efficiency metrics are satisfactory but indicate room for improvement in capital utilization.

Valuation RPM's valuation appears to carry a premium. The trailing and forward P/E ratios in the low 20s suggest moderate pricing, but the exceptionally high EV/EBITDA of 55.49 is a significant concern, indicating the stock is expensive relative to its cash flow. The negative PEG ratio further complicates the growth outlook, though its accuracy may be questionable.

Risk The primary risk is moderate market volatility, as indicated by the beta above 1.0. A more significant concern is the lack of transparency regarding key risk metrics like maximum drawdown and short interest, which limits the ability to fully assess potential downsides. This data gap itself adds a layer of uncertainty for investors.

Buy Recommendation

RPM is a "HOLD" at this time, not a buy. The company's solid balance sheet and cash flow are positive, but they are currently offset by margin pressure and a premium valuation that appears stretched, particularly based on the EV/EBITDA metric. Investors should wait for signs of operational improvement and a more attractive valuation before considering a position. The lack of complete data, especially for risk assessment, further justifies a cautious approach.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, the 12-month outlook for RPM International Inc. (RPM) is one of cautious stability.

Key catalysts for potential upside would be a successful reversal of the recent margin pressure through improved operational efficiency and cost control, which would help justify its current valuation. The primary risk is its premium valuation, particularly the high EV/EBITDA ratio, which makes the stock vulnerable to a de-rating if earnings growth disappoints or if market sentiment sours on highly-valued industrials. Given the mixed fundamental picture and the absence of a specific analyst target price, a "Hold" rating is appropriate, with the expectation that the stock will likely trade within a range as the market waits for clearer signs of operational improvement.

Wall Street Consensus

Most Wall Street analysts are optimistic about RPM International Inc.'s 12-month outlook, with consensus target around $0.00, indicating expected upside potential.

Overall, RPM has investment potential but also faces challenges. Here are key factors to weigh before investing.

Analysis cannot be completed as critical price and performance data are unavailable for RPM.

Without the current price, recent percentage changes, and the 52-week range, a short-term performance assessment relative to the market is impossible. The beta of 1.102 indicates the stock has historically been slightly more volatile than the market, but this lacks context without current performance figures.

Similarly, determining the current price position within its 52-week range or identifying potential overbought/oversold conditions is unfeasible without the necessary high, low, and current price data. A complete analysis requires all specified data points.

Revenue & Profitability RPM's Q2 revenue of $1.91 billion declined sequentially from Q1's $2.11 billion, though gross margins compressed moderately to 40.8% from 42.3%. Net profit margin also softened to 8.4% from 10.8% in the prior quarter, indicating some margin pressure. The sequential decline in both top-line performance and profitability metrics warrants monitoring for stabilization.

Financial Health The company maintains solid liquidity with a current ratio of 2.22 and quick ratio of 1.45, supported by strong operating cash flow per share of $2.72. RPM's debt-equity ratio of 0.92 and interest coverage of 8.2x reflect manageable leverage with comfortable debt service capacity. The cash flow to debt ratio of 0.12 suggests adequate, though not robust, cash generation relative to obligations.

Operational Efficiency RPM demonstrates moderate operational efficiency with return on equity of 5.2% and asset turnover of 0.24, indicating room for improvement in capital utilization. The operating cycle of 151 days, driven by 64 days sales outstanding and 86 days inventory outstanding, suggests average working capital management. These metrics point to satisfactory but not exceptional operational execution.

Based on RPM's trailing PE ratio of 22.68 and forward PE of 21.09, the stock appears moderately valued. While the forward PE shows minimal earnings growth expectations, the significantly negative PEG ratio of -0.72 is concerning as it suggests either declining earnings growth or an anomalous calculation, making growth-based valuation difficult to assess. The exceptionally high EV/EBITDA ratio of 55.49 indicates the market is pricing RPM at a substantial premium relative to its operating cash flow generation.

Without industry average data for comparison, a relative valuation assessment cannot be completed. The PB ratio of 4.84 suggests investors are paying nearly five times book value, which typically indicates a premium valuation, but without industry context it's impossible to determine if this is justified. A comprehensive peer comparison would require relevant industry benchmarks to contextualize these valuation metrics properly.

Of course. Here is a risk analysis for RPM based on the provided data.

The primary volatility risk indicated by the Beta of 1.102 suggests RPM stock is slightly more volatile than the broader market. This means it can be expected to experience price swings about 10% greater than the market benchmark, presenting a moderate level of systematic risk. The inability to calculate a maximum drawdown (N/A%) is a significant data gap, preventing an assessment of the stock's worst-case historical peak-to-trough decline, which is a critical measure of potential loss severity for investors.

The absence of available data for key risk metrics like short interest and maximum drawdown itself presents a substantial analytical challenge. Without short interest figures, it is impossible to gauge market sentiment or the potential for a short squeeze. Furthermore, the lack of a maximum drawdown metric obscures the stock's historical resilience during downturns. This overall lack of transparency and data can be interpreted as an additional risk factor, as it limits the ability to conduct a thorough risk assessment.