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RPM (RPM International) Financial Strength : 7 (As of Nov. 2024)


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What is RPM International Financial Strength?

RPM International has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

RPM International's Interest Coverage for the quarter that ended in Nov. 2024 was 10.13. RPM International's debt to revenue ratio for the quarter that ended in Nov. 2024 was 0.32. As of today, RPM International's Altman Z-Score is 4.83.


Competitive Comparison of RPM International's Financial Strength

For the Specialty Chemicals subindustry, RPM International's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, RPM International's Financial Strength distribution charts can be found below:

* The bar in red indicates where RPM International's Financial Strength falls into.



RPM International Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

RPM International's Interest Expense for the months ended in Nov. 2024 was $-23 Mil. Its Operating Income for the months ended in Nov. 2024 was $235 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2024 was $2,324 Mil.

RPM International's Interest Coverage for the quarter that ended in Nov. 2024 is

Interest Coverage=-1*Operating Income (Q: Nov. 2024 )/Interest Expense (Q: Nov. 2024 )
=-1*234.708/-23.177
=10.13

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

RPM International's Debt to Revenue Ratio for the quarter that ended in Nov. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Nov. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.06 + 2324.363) / 7381.272
=0.32

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

RPM International has a Z-score of 4.83, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.83 is strong.

* 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  (NYSE:RPM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

RPM International has the Financial Strength Rank of 7.


RPM International Financial Strength Related Terms

Thank you for viewing the detailed overview of RPM International's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


RPM International Business Description

Traded in Other Exchanges
Address
2628 Pearl Road, P.O. Box 777, Medina, OH, USA, 44256
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 comes from North America.
Executives
Frederick R. Nance director 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Michael J. Laroche officer: VP, Controller & CAO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Matthew T Ratajczak officer: VP-Global Tax and Treasurer 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frank C Sullivan director, officer: President and CEO
Russell L Gordon officer: VP and CFO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Timothy R. Kinser officer: VP-Operations 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Edward W. Moore officer: VP, Gen. Counsel & Secretary 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Ellen M Pawlikowski director 870 WINTER STREET, WALTHAM MA 02451
Elizabeth F Whited director 1400 DOUGLAS ST, OMAHA NE 68179
Thomas Gross director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
David A. Daberko director C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Michael Hobart Sullivan officer: VP, Operations and CRO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
John M Ballbach director
Kirkland B Andrews director C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Robert Livingston director C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515