RPM International Inc. RPM
RPM International's FY2026 (fiscal year ended May 31, 2026) results show accelerating top-line growth — revenue rose 6.6% to $7.86B and free cash flow expanded to $675M (8.6% margin) — but operating margin compressed from 12.3% to 11.7% and diluted EPS declined 3.4% to $5.17, as MAP 3.0 restructuring costs weigh on profitability. At 20.5x trailing earnings, the stock trades roughly 60% below the specialty-chemical peer median P/E (51.5x) and 17% below the peer median EV/EBITDA (14.6x), yet near-term technicals have weakened with the stock at $106.65, below its 50-day MA ($109.03) and showing a negative MACD histogram of -1.01.
Management's guided 3%-7% revenue and 5%-10% EBITDA growth, combined with 24-month net insider buying of ~$15.6M and an improving smart-money score (0.0133 as of June 30, 2026), suggests the margin compression may be transitory, but until quarterly results confirm operating margin recovery the risk/reward remains balanced.
What could go wrong
- Margin compression persists. Operating margin already declined from 12.3% to 11.7% in FY2026; if MAP 3.0 restructuring savings fail to materialize, further erosion would pressure EPS
- Construction end-market slowdown. RPM's core exposure to construction and building maintenance markets makes it vulnerable to any housing or infrastructure spending downturn
- Technical breakdown below 200-day MA. Stock is sitting near its 200-day moving average ($106.64); a sustained break below could trigger further selling
- Leverage exposure. Total debt of $2.87B against stockholders' equity of $3.31B limits financial flexibility if rates rise or end markets soften
What would change my mind
Where this comes from: FMP FY2026 fundamentals · derived_metrics FY2025–FY2026 · FMP FY2026 fundamentals, derived_metrics · FMP FY2026 fundamentals, derived_metrics. Orin's read on RPM; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All RPM filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $793.3M | 0.0% of fund |
| State Street | $750.5M | 0.0% of fund |
| Vanguard Capital Management | $640.9M | 0.0% of fund |
| Morgan Stanley | $466.5M | 0.0% of fund |
| Geode Capital Management | $294.8M | 0.0% of fund |
| Price T Rowe Associates /Md/ | $283.2M | 0.0% of fund |
84 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 108 Form 4 filings, net $15.6M. Of the 50 on hand, 0 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about RPM
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 19.0× | — | 29.8× |
| EV/EBITDA | 11.4× | — | — |
| P/S | 1.60× | — | — |
| P/B | 3.8× | — | — |
6.8%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$133
$117 – $151 · +34% against today's price
- 17 buy or overweight
- 5 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| RPMRPM International Inc. | $13B | 19.0× | 11.4× | 41.4% | 8.4% | 21% |
| ALBAlbemarle Corporation | $13B | 225.5× | 10.7× | 23.9% | 3.8% | 2% |
| CFCF Industries Holdings, Inc. | $18B | 8.8× | 4.9× | 42.5% | 27.1% | 40% |
| DDDuPont de Nemours, Inc. | $18B | 283.2× | 14.3× | 34.4% | 0.7% | 0% |
| IFFInternational Flavors & Fragrances Inc. | $22B | 78.8× | 18.6× | 37.5% | 2.9% | 2% |
| LYBLyondellBasell Industries N.V. | $19B | — | 16.4× | 13.2% | -1.1% | -3% |
| RSReliance Steel & Aluminum Co. | $20B | 22.3× | 14.1× | 26.9% | 5.7% | 12% |
The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 75.9% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.