📊 AI Stock Rating — Summary

In the most recent quarter ending November 30, 2025, RPM reported revenue of approximately $1.91 billion with net income of $161 million, reflecting a net margin of 8.4%. Earnings per share (EPS) were $1.26. Free cash flow (FCF) was reported at $296 million, showcasing robust cash generation. Compared to the same quarter last year, RPM’s revenue growth appears stable, supported by consistent demand across its product lines. Despite a solid earnings report, the focus remains on improving profitability further. RPM's ability to convert earnings into cash is reflected in its substantial FCF, suggesting efficient operations and the ability to fund dividends, which have been consistent with a recent quarterly payout of $0.54 per share. The balance sheet reveals a reasonable structure with a debt-to-equity ratio of 0.82. With net debt of $2.55 billion, RPM's leverage is within industry norms, though there is room for improvement. Analyst price targets range up to $132, suggesting potential upside. As of January 9, 2026, shareholder returns might have benefited more from share price appreciation than dividends, indicating positive market sentiment.

AI Score Breakdown

Revenue Growth — Score: 6/10

RPM's revenue growth remains stable with approximately $1.91 billion achieved in the latest quarter. Growth is driven by steady demand across its product lines, indicating resilience despite industry challenges.

Profitability — Score: 7/10

Operating margins are healthy at 8.4% net margin, with EPS at $1.26. Profitability is in line with industry benchmarks, though incremental improvements are feasible.

Cash Flow Quality — Score: 8/10

Free cash flow stood at $296 million, indicating strong cash conversion. Dividend payments are well-covered, reflecting sound liquidity and capacity for shareholder returns.

Leverage & Balance Sheet — Score: 6/10

With a debt-to-equity ratio of 0.82, leverage is manageable. While net debt is significant, the company's balance sheet supports its operational strategies.

Shareholder Returns — Score: 7/10

Dividends are consistent at $0.54 per share. The market price has likely seen modest appreciation, aligned with positive analyst targets, enhancing shareholder value.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets up to $132 indicate potential upside, suggesting RPM may be fairly valued with a positive outlook at the valuation date.

⚠ AI-generated — informational only, not financial advice.