Why RPM International is on investors’ radar today
RPM International (RPM) is drawing attention after recent trading left the stock around $108.87, with performance mixed across different timeframes, including a decline over the past year but gains over the past 3 months.
See our latest analysis for RPM International.
RPM’s recent share price softness, with a 7 day share price return of 4.68% and a 1 year total shareholder return decline of 10.81%, contrasts with positive 3 and 5 year total shareholder returns of 29.91% and 35.26%. This suggests that longer term holders have still seen gains.
If this mixed performance has you looking beyond a single name, it could be a good moment to broaden your search with our screener of 20 top founder-led companies.
With RPM trading at $108.87 and sitting at a discount to both some analyst targets and one intrinsic value estimate, you have to ask: is this a genuine value opportunity, or is the market already pricing in future growth?
Most Popular Narrative: 14.7% Undervalued
RPM International’s most followed narrative puts fair value at $127.64 per share, compared with the recent $108.87 close. This naturally raises questions about what is built into that gap.
The successful execution of the MAP 2025 efficiency program (with incremental $70 million in savings targeted for FY26), ongoing plant consolidations, and a streamlined 3 segment structure are set to deliver further margin improvement and operational leverage, directly benefiting earnings and free cash flow.
Curious how cost savings, margin targets and future earnings all tie together into that higher value per share? The full narrative lays out the step by step maths behind it.
Result: Fair Value of $127.64 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on consumer demand not remaining weak and on RPM managing input cost pressures and higher debt without squeezing margins or cash flow.
Find out about the key risks to this RPM International narrative.
Next Steps
This mix of potential upside and clear risks can feel like a lot to weigh, so do not wait too long to review the balance of 5 key rewards and 1 important warning sign for yourself.
Looking for more investment ideas?
If RPM has you thinking more broadly about your portfolio, do yourself a favor and scan a few focused shortlists before the next opportunity slips past you.
- Target potential mispricings by reviewing our list of 47 high quality undervalued stocks, where fundamentals and price are assessed side by side.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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