RPM International (RPM): Assessing Valuation After a Recent Share Price Pullback

RPM International (RPM) has had a choppy stretch lately, with the stock slipping over the past week but still edging higher over the month. That mixed price action sets up an interesting entry point.

See our latest analysis for RPM International.

Zooming out, the recent pullback sits against a softer backdrop, with the 90 day share price return of negative 14.14 percent and a one year total shareholder return of negative 14.54 percent pointing to fading momentum despite solid underlying business growth.

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With RPM still growing earnings and trading at a notable discount to analyst targets and intrinsic value estimates, investors now face a key question: is this a genuine buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 21.8% Undervalued

With RPM International last closing at $105.13 against a narrative fair value in the mid $130s, the story points to meaningful upside from here.

A deliberate focus on innovative, environmentally friendly products and entry into new cleaning categories (e.g., The Pink Stuff) positions RPM to capture market share and drive pricing power, as regulatory and market emphasis on sustainability continues to intensify. This is likely to support both revenue growth and net margin expansion.

Read the complete narrative.

Want to see how steady revenue gains, rising margins, and a richer earnings multiple all work together in this narrative? The full breakdown reveals the assumptions powering that upside case, and the one lever that has to deliver for this valuation to hold.

Result: Fair Value of $134.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent consumer weakness and higher input costs could squeeze margins and derail the efficiency gains and growth assumptions that underpin this upside scenario.

Find out about the key risks to this RPM International narrative.

Build Your Own RPM International Narrative

If this view does not fully resonate with you, or you prefer to rely on your own analysis, you can quickly craft a personalised RPM thesis in just a few minutes: Do it your way

A great starting point for your RPM International research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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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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