RPM INTERNATIONAL Reports Q2 Earnings for Fiscal Year 2024
January 5, 2024
🌥️Earnings Overview
On November 30, 2023, RPM ($NYSE:RPM) International reported their fiscal year 2024 second quarter earnings results ending on January 4, 2024. Total revenue remained unchanged year over year at USD 1792.3 million, while net income increased 10.8% to USD 145.5 million compared to the previous year.
Share Price
The stock opened at $103.0 and eventually settled at $103.9, marking a 3.0% decline from its previous closing price of 107.1. This was due to the strong performance of their core businesses which saw significant increases in revenue and improved margins in some segments of their operations. RPM INTERNATIONAL also noted that its performance in the quarter was supported by solid demand in the U.S. market, where it derives more than two-thirds of its sales. In Asia and Europe, the company saw modest growth in demand, with sales increasing modestly in both regions.
Overall, RPM International‘s Q2 results were positive, with strong performance from its core businesses being the main driver of growth for the quarter. The company will be looking to continue this momentum in the coming quarters as it looks to expand its operations both domestically and internationally. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rpm International. More…
| Total Revenues | Net Income | Net Margin |
| 7.34k | 524.23 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rpm International. More…
| Operations | Investing | Financing |
| 1.15k | -197.34 | -925.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rpm International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.54k | 4.17k | 18.32 |
Key Ratios Snapshot
Some of the financial key ratios for Rpm International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.6% | 7.5% | 11.5% |
| FCF Margin | ROE | ROA |
| 12.6% | 22.6% | 8.0% |
Analysis
GoodWhale has made the following conclusion after analyzing RPM INTERNATIONAL‘s fundamentals. RPM INTERNATIONAL has been classified as a ‘gorilla’, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it attractive to investors looking for consistent and reliable returns on their investments. RPM INTERNATIONAL is extremely strong in dividend, profitability, and medium in asset and growth. It has a high health score of 8/10, which demonstrates its ability to pay off debt and fund future operations. This makes RPM INTERNATIONAL an attractive investment for those looking for sustainable and secure returns. More…
Peers
The company operates in three business segments: industrial, consumer, and roofing and insulation. The industrial segment offers coatings, sealants, and adhesives for commercial, industrial, and governmental customers worldwide. The consumer segment provides paints, primers, and stains for do-it-yourself markets under the Rust-Oleum, Zinsser, and DAP brands. The roofing and insulation segment offers coatings and sealants for commercial and residential roofs and walls under the Henry, LIBERTY, and Tremco Roofing brands. RPM International Inc’s competitors include Sensient Technologies Corp, Covestro AG, Oil-Dri Corp of America, and others.
– Sensient Technologies Corp ($NYSE:SXT)
Sensient Technologies Corp is a global leader in colorants, flavors, and fragrances. The company has a market cap of 3.03B as of 2022 and a return on equity of 12.77%. Sensient Technologies Corp develops, manufactures, and markets a wide range of colorants, flavors, and fragrances for use in food, beverage, cosmetic, and pharmaceutical applications. The company’s products are sold in more than 120 countries around the world.
– Covestro AG ($LTS:0RBE)
Covestro AG is a German specialty chemicals company. It is one of the world’s largest producers of polymers. The company was formerly known as Bayer MaterialScience and was part of Bayer AG. It was spun off from Bayer AG in 2015. The company has about 16,800 employees and operates in more than 30 countries.
– Oil-Dri Corp of America ($NYSE:ODC)
Oil-Dri Corporation of America is a manufacturer and marketer of sorbent products. The company’s products are used to absorb, capture, and remove oils, greases, and other liquids from surfaces in industrial, commercial, and consumer applications. Oil-Dri’s products are sold under the Oil-Dri, Sorb-It, and PIG brand names. The company was founded in 1941 and is headquartered in Chicago, Illinois.
Summary
RPM International Inc. reported their earnings results for the 2nd quarter of fiscal year 2024, with total revenue of USD 1792.3 million and net income of USD 145.5 million, representing a 10.8% increase year over year. Despite this positive news, the stock price experienced a decline on the same day. This could indicate that investors were not satisfied with the performance of the company, expecting higher growth, or that the overall market sentiment was bearish. Further analysis is needed to determine the reasons for the stock price movement.
