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RPM InternationalRPM -0.72%93 Operating Margin % is 14.10% as of May. 2026, which is 32% above its 10-year median of 10.72. GuruFocus rates RPM with a GF Score™ of 93/100 and a GF Value™ of $120.34 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,577 Chemicals companies, RPM International ranks better than 74.76% on this metric.
RPM International (NYSE:RPM) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
RPM International Operating Margin % Related Terms
RPM International Operating Margin % Historical Data
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The historical data trend for RPM International's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RPM vs ALB, SOLS, WLK: Operating Margin % Comparison
For the Specialty Chemicals subindustry, RPM International's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RPM International Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, RPM International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RPM International's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
RPM International's Operating Margin % for the fiscal year that ended in May. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RPM International (RPM) has a Operating Margin % of 14.10% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on RPM International and its competitors. This is 32% above median its historical median of 10.72. Over the past decade, RPM International's Operating Margin % has ranged from 8.85 to 12.29. According to the industry distribution chart, RPM International ranks #398 out of 1577 companies in the Chemicals industry, placing it in the top 25.2%.
Is RPM International's Operating Margin % too high?
RPM International's current Operating Margin % of 14.10% is 32% above median its 10-year median of 10.72. Over the past 10 years, this metric has ranged from a low of 8.85 to a high of 12.29. The Chemicals industry median Operating Margin % is 6.12. RPM International's value of 14.10% is 130.4% above this industry median. Based on the distribution chart, RPM International ranks #398 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, RPM International has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RPM International's Operating Margin % compare to ALB and SOLS?
According to the Chemicals industry distribution chart, RPM International ranks #398 out of 1577 companies for Operating Margin %. This puts RPM International in the upper half of its industry. The industry median Operating Margin % is 6.12. RPM International's value of 14.10% is 130.4% above this benchmark. Historically, RPM International's own Operating Margin % has ranged from 8.85 to 12.29 over the past decade. While the company's 10-year median is 10.72 vs. the industry median of 6.12, RPM International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.12, based on 1,577 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RPM International's current Operating Margin % of 14.10% is 130.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on RPM International and its competitors. For the Chemicals industry, the median Operating Margin % is 6.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RPM International's current Operating Margin % is 14.10%, which is 32% above median its own 10-year median of 10.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RPM International stock overvalued right now?
Based on GuruFocus' analysis, RPM International (RPM) is currently considered Modestly Undervalued. The stock's GF Value™ is $120.34, compared to a current price of $107.05 — trading 11% below its estimated fair value. The current Operating Margin % is 14.10%, which is 32% above median its 10-year median of 10.72 and 130.4% above the Chemicals industry median of 6.12. RPM International's overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For RPM International (RPM), the current Operating Margin % is 14.10% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RPM International (RPM) Overvalued in 2026?
Based on GuruFocus' analysis, RPM International stock appears to be undervalued.
The current stock price of $107.05 is trading 11% below its estimated GF Value™ of $120.34.
GuruFocus considers RPM International to be Modestly Undervalued.
Key valuation signals for RPM:
Operating Margin %: 14.10% (32% above median its 10-year median of 10.72)
GF Value™: $120.34 vs. price of $107.05 (11% below fair value)
Industry Position: 130.4% above the Chemicals median (#398 of 1577)
No single metric tells the full story. See the RPM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributors, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a line of products ranging from niche applications of the other groups to marine finishes, to edible food colorings. The majority of revenue is from the construction products and North America.
93GF Score
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