RPM Beats Q1 EPS Estimate, Guides Moderate Sales Growth
RPM International posted Q1 EPS of $1.98, $0.03 above consensus, and guided for low- to mid-single-digit sales growth. The stock's P/E of 18.45 sits below its five-year median of 23.58.
RPM INTERNATIONAL INC/DE/ currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
RPM International on Oct. 6 reported fiscal first-quarter earnings that topped analysts' estimates. Non-GAAP earnings per share came in at $1.98, three cents above the consensus forecast. Revenue rose 4.8% from a year earlier, in line with expectations, the company said.
The company guided for low- to mid-single-digit growth in consolidated sales and adjusted EBITDA for both the second quarter and the full fiscal year. That outlook implies management expects steady demand across RPM's four segments: Construction Products, Performance Coatings, Consumer, and Specialty Products. The company's brands include Rust-Oleum, DAP, Tremco, and Carboline.
RPM's dividend yield stands at 2.32%, supported by a payout ratio of 40%. The company has increased its dividend at an 8.7% compound annual rate over the past three years, according to the earnings release. The moderate payout leaves room for further increases without straining cash flow.
On valuation, RPM's trailing price-to-earnings ratio of 18.45 sits below its five-year median of 23.58, according to data from GuruFocus. The stock closed at $95.30 on Oct. 6, giving it a market capitalization of $12.16 billion.
Insider activity over the past 12 months shows net selling of $500,000 with no insider purchases, according to filings tracked by GuruFocus. Meanwhile, six large institutional investors tracked by the same service held RPM shares as of the latest filing period, with four increasing their stakes and three trimming. The divergence between insider selling and guru buying is a signal that investors may weigh alongside other fundamentals.
RPM carries no Alpha Score, leaving it unscored in AlphaScala's proprietary ranking system for the Basic Materials sector.
The primary risk to the outlook is a failure to deliver on the low- to mid-single-digit growth guidance. A slowdown in construction or industrial demand, or a margin squeeze from raw material costs, could push results below the projected range. Conversely, stronger-than-expected demand in the Construction Products or Consumer segments, or faster margin improvement, would reduce that risk.
RPM's next quarterly report is expected in early January 2027, following the company's usual reporting cycle. For more details, visit the RPM stock page.
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