RPM International Inc. (RPM) Bundle
A Brief History of RPM International Inc.
Company Overview
RPM International Inc. is a multinational company specializing in specialty coatings, sealants, and related products. Its portfolio includes brands such as Rust-Oleum, Zinsser, and DAP. As of August 31, 2024, RPM has a consolidated net sales of $1.97 billion, a decrease from $2.01 billion reported in the same period of the previous year.
Financial Performance
For the three months ended August 31, 2024, RPM reported a net income of $228.6 million, which is an increase of 13.5% compared to $201.3 million during the same period in 2023. The diluted earnings per share rose to $1.77 from $1.56.
| Metric | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $1.97 billion | $2.01 billion | -1.93% |
| Net Income | $228.6 million | $201.3 million | +13.5% |
| Diluted EPS | $1.77 | $1.56 | +13.5% |
Segment Performance
The company's performance varied across its business segments. The Construction Products Group (CPG) segment reported net sales of $793.99 million, an increase from $782.79 million year-over-year. The Performance Coatings Group (PCG) segment saw a slight decline in sales, reporting $371.76 million compared to $378.51 million in the prior year.
| Segment | Q1 2025 Sales | Q1 2024 Sales | Change (%) |
|---|---|---|---|
| CPG | $793.99 million | $782.79 million | +2.96% |
| PCG | $371.76 million | $378.51 million | -1.98% |
| Consumer | $628.47 million | $669.60 million | -6.14% |
| SPG | $174.57 million | $180.95 million | -3.90% |
Cash Flow and Liquidity
In terms of cash flow, RPM generated approximately $248.1 million from operating activities during Q1 2025, compared to $359.2 million in Q1 2024. The company’s cash and cash equivalents stood at $231.56 million at the end of August 2024, down from $237.38 million at the end of May 2024.
Stock Repurchase Program
During the first quarter of fiscal 2025, RPM repurchased 152,146 shares at an average cost of $115.02 per share, totaling approximately $17.5 million. The remaining amount available under the stock repurchase program was approximately $244.8 million as of August 31, 2024.
Future Outlook
RPM is focused on improving operational efficiencies through its MAP 2025 initiative, which aims to enhance margins by streamlining business processes. The company anticipates continued cost improvements and growth in its CPG segment.
A Who Owns RPM International Inc. (RPM)
Major Shareholders
As of 2024, RPM International Inc. has a diverse shareholder base, including institutional investors and individual shareholders. The largest shareholders include:
- The Vanguard Group, Inc. - Approximately 11.8% ownership.
- BlackRock, Inc. - Approximately 9.6% ownership.
- State Street Corporation - Approximately 5.7% ownership.
- Wellington Management Group LLP - Approximately 5.1% ownership.
Insider Ownership
Insider ownership plays a significant role in the governance of RPM International Inc. Key executives and board members collectively hold about 3.2% of the company's shares. Notable insiders include:
- Frank C. Sullivan, Chairman and CEO - Holds approximately 1.5% of shares.
- Cynthia R. M. R. Sullivan, Director - Holds approximately 0.5% of shares.
Stock Performance and Market Capitalization
As of August 31, 2024, RPM International Inc. reported a market capitalization of approximately $3.5 billion. The stock has shown resilience with a year-to-date performance increase of around 12%.
| Key Financial Metrics | Value |
|---|---|
| Market Capitalization | $3.5 billion |
| Share Price (as of August 31, 2024) | $115.02 |
| Year-to-Date Performance | +12% |
| Shares Outstanding | 128.7 million |
Share Repurchase Program
RPM International Inc. has an active share repurchase program, with a remaining authorization of approximately $244.8 million as of August 31, 2024. The company repurchased 152,146 shares at an average cost of $115.02 per share during the first quarter of fiscal 2025, totaling approximately $17.5 million.
Dividend Policy
The company maintains a consistent dividend policy, having declared a dividend of $0.46 per share in the latest fiscal quarter, resulting in total dividends paid of approximately $58.9 million for the quarter ended August 31, 2024.
| Dividend Information | Value |
|---|---|
| Dividends Declared (per share) | $0.46 |
| Total Dividends Paid (Q1 FY2025) | $58.9 million |
| Dividend Yield | 1.6% |
Institutional Ownership Trends
Institutional ownership has increased over the past year, reflecting growing confidence in RPM International Inc.'s business model and market position. The institutional ownership percentage stands at approximately 75.4% as of the latest filings.
Recent Financial Performance
For the three months ending August 31, 2024, RPM International Inc. reported:
- Net Income: $228.6 million
- Net Sales: $1.97 billion
- Diluted Earnings Per Share: $1.77
| Recent Financial Highlights | Value |
|---|---|
| Net Income (Q1 FY2025) | $228.6 million |
| Net Sales (Q1 FY2025) | $1.97 billion |
| Diluted EPS (Q1 FY2025) | $1.77 |
RPM International Inc. (RPM) Mission Statement
Mission Statement Overview
The mission statement of RPM International Inc. emphasizes a commitment to providing innovative and high-quality products and services that enhance the performance and durability of its customers' projects. The company's focus is on sustainability, safety, and customer satisfaction, aiming to create value for stakeholders through responsible operations.
Financial Performance Metrics
As of the first quarter of fiscal 2025, RPM International reported key financial metrics that reflect its operational effectiveness:
| Metric | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $1,968.8 million | $2,011.9 million |
| Net Income | $228.6 million | $201.3 million |
| Gross Profit | $836.7 million | $828.6 million |
| Earnings Per Share (Diluted) | $1.77 | $1.56 |
| Effective Income Tax Rate | 21.3% | 25.2% |
Strategic Initiatives
RPM has implemented various strategic initiatives under its MAP 2025 program, which focuses on:
- Enhancing operational efficiency
- Improving procurement and manufacturing processes
- Expanding product offerings
- Strengthening customer relationships
Market Position and Competitiveness
In the competitive landscape, RPM International stands out due to its diverse product portfolio, which includes specialty paints, protective coatings, and construction products. The company aims to maintain its leadership position by continuously innovating and adapting to market demands.
Operational Metrics
Key operational metrics for RPM International as of August 31, 2024, are as follows:
| Operational Metric | Value |
|---|---|
| Average Days Sales Outstanding (DSO) | 60.2 days |
| Average Days Inventory Outstanding (DIO) | 76.7 days |
| Average Days Payables Outstanding (DPO) | 87.3 days |
Investment in Growth
RPM continues to invest in growth initiatives to enhance its market presence and operational capabilities. The company reported capital expenditures of approximately $50.7 million in Q1 FY 2025, aimed at expanding production and enhancing technologies.
Stockholder Returns
In terms of shareholder value, RPM has been active in its stock repurchase program. In the first quarter of FY 2025, RPM repurchased 152,146 shares at a cost of approximately $17.5 million, reflecting its commitment to return value to shareholders.
Conclusion on Mission and Values
RPM International Inc. remains dedicated to its mission of providing exceptional products and services while adhering to principles of sustainability and corporate responsibility.
How RPM International Inc. (RPM) Works
Business Segments
RPM International Inc. operates through several business segments, each focusing on different market needs:
- Consumer Products Group (CPG)
- Performance Coatings Group (PCG)
- Specialty Products Group (SPG)
Financial Performance
For the first quarter of fiscal 2025, RPM reported the following financial figures:
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Sales | $1,968.8 million | $2,011.9 million |
| Gross Profit | $836.7 million | $828.6 million |
| Net Income | $228.6 million | $201.3 million |
| Diluted Earnings Per Share | $1.77 | $1.56 |
| Cash Provided by Operating Activities | $248.1 million | $359.2 million |
| Cash and Cash Equivalents at End of Period | $231.6 million | $240.6 million |
Segment Performance
RPM's segments showed varied performance in Q1 2025:
| Segment | Net Income (Loss) Before Income Taxes | Q1 2025 (% of Net Sales) | Q1 2024 (% of Net Sales) |
|---|---|---|---|
| CPG | $157.0 million | 19.8% | 17.9% |
| PCG | $64.3 million | 17.3% | 11.8% |
| Consumer | $108.2 million | 17.2% | 19.7% |
| SPG | $15.2 million | 8.7% | 9.1% |
Liquidity and Capital Resources
As of August 31, 2024, RPM had available liquidity of approximately:
- $1.44 billion in cash and cash equivalents
- $244.8 million remaining under the stock repurchase program
Debt and Financing Activities
RPM's financing activities for Q1 2025 included:
- Additions to long-term and short-term debt: $37.8 million
- Reductions of long-term and short-term debt: $131.8 million
- Cash dividends paid: $58.9 million
Inventory and Receivables
As of August 31, 2024, RPM's inventory and receivables were reported as follows:
| Item | Amount (in thousands) |
|---|---|
| Trade Accounts Receivable | $1,344,177 |
| Contract Assets | $78,537 |
| Total Inventory, Net of Reserves | $1,003,459 |
Tax and Regulatory Considerations
The effective income tax rate for Q1 2025 was:
- 21.3% compared to 25.2% in Q1 2024
Comprehensive Income
RPM's comprehensive income for Q1 2025 was:
- Total Comprehensive Income: $225.3 million
- Comprehensive Income Attributable to RPM International Inc. Stockholders: $224.4 million
Market Position and Strategies
RPM's initiatives include:
- MAP 2025 initiatives aimed at enhancing operational efficiencies
- Focus on strategic acquisitions to expand market reach
Recent Stock Activity
During Q1 2025, RPM repurchased:
- 152,146 shares at an average price of $115.02 per share
Conclusion of Financials
Overall, RPM International Inc. continues to demonstrate strong operational performance and maintain a solid financial position as of August 31, 2024.
How RPM International Inc. (RPM) Makes Money
Revenue Generation
RPM International Inc. generates revenue primarily through the sale of various products across multiple segments, including Construction Products Group (CPG), Performance Coatings Group (PCG), Consumer Group, and Specialty Products Group (SPG).
For the first quarter of fiscal 2025, RPM reported consolidated net sales of $1.968 billion, a decrease of 2.1% compared to $2.012 billion in the same period of the previous year.
| Segment | Net Sales (Q1 2025) | Net Sales (Q1 2024) | Growth/Decline |
|---|---|---|---|
| CPG | $794.0 million | $782.8 million | 1.4% |
| PCG | $371.8 million | $378.5 million | (1.8%) |
| Consumer | $628.4 million | $669.6 million | (6.1%) |
| SPG | $174.6 million | $181.0 million | (3.5%) |
| Total | $1.968 billion | $2.012 billion | (2.1%) |
Cost Structure
The cost of sales for RPM in the first quarter of fiscal 2025 was $1.132 billion, resulting in a gross profit of $836.7 million and a gross profit margin of 42.5%.
In comparison, the cost of sales for the same period in the previous year was $1.183 billion, leading to a gross profit of $828.6 million and a gross profit margin of 41.2%.
Operating Expenses
RPM's selling, general, and administrative (SG&A) expenses for Q1 2025 were $526.1 million, a slight decrease from $531.0 million in Q1 2024.
Restructuring expenses rose to $7.2 million from $6.5 million in the previous year.
Net Income and Earnings Per Share
Net income for Q1 2025 was reported at $228.6 million, which is approximately 11.6% of net sales, compared to $201.3 million or 10.0% of net sales for Q1 2024.
The diluted earnings per share (EPS) for Q1 2025 was $1.77, compared to $1.56 for Q1 2024.
Segment Performance Analysis
The performance of RPM's segments can be analyzed as follows:
- CPG Segment: Contributed significantly to revenue growth driven by roofing systems and wall systems.
- PCG Segment: Experienced organic growth but faced challenges due to the divestiture of certain divisions.
- Consumer Segment: Saw a decline in sales attributed to reduced DIY market activity.
- SPG Segment: Experienced organic sales declines due to soft demand in specialty OEM markets.
Cash Flow and Liquidity
Cash provided by operating activities during the first three months of fiscal 2025 was $248.1 million, down from $359.2 million in the same period last year.
As of August 31, 2024, RPM reported cash and cash equivalents of $231.6 million.
Debt and Financing Activities
For the first three months of fiscal 2025, cash used for financing activities was $186.0 million, a decrease from $274.3 million in the prior year.
RPM has a revolving credit facility of $1.35 billion as of August 31, 2024, which was amended to extend its expiration to August 1, 2027.
Stock Repurchase Program
During the first quarter of fiscal 2025, RPM repurchased 152,146 shares at a cost of $17.5 million, averaging $115.02 per share.
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