/
THE COMPANY RPM International Inc., a Delaware corporation, succeeded to the reporting obligations of RPM, Inc., an Ohio corporation, following a 2002 reincorporation transaction. RPM, Inc. was originally incorporated in 1947 under the name Republic Powdered Metals, Inc. and changed its name to RPM, Inc. in 1971.
10.92% operating margin is respectable but not wide. ROIC at 12.89%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 0.5%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 41% versus the prior year, cash generation momentum has weakened. Net debt of $2.73B represents 5.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$7.71B
▲ +0.5% YoY
Net Income (TTM)
$666M
▲ +17.0% YoY
Op. Margin
10.96%
▼ -0.1pp YoY
ROIC
11.42%
▲ +0.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$575M
▼ -40.7% YoY
Op. Cash Flow (TTM)
$806M
▼ -31.6% YoY
Net Debt
$2.60B
Cash & Equiv.
$294M
5Y CAGR: +6.0%
5Y CAGR: +6.0%
Continue Research