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RPM InternationalRPM -0.72%93 Return-on-Tangible-Equity is 122.64% as of May. 2026, which is 3% above its 10-year median of 118.53. 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 1,567 Chemicals companies, RPM International ranks better than 97.64% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. RPM International's annualized net income for the quarter that ended in May. 2026 was $885 Mil. RPM International's average shareholder tangible equity for the quarter that ended in May. 2026 was $722 Mil. Therefore, RPM International's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 122.64%.
The historical rank and industry rank for RPM International's Return-on-Tangible-Equity or its related term are showing as below:
RPM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 102.89 Med: 118.53 Max: 277.86
Current: 105.51
During the past 13 years, RPM International's highest Return-on-Tangible-Equity was 277.86%. The lowest was 102.89%. And the median was 118.53%.
RPM's Return-on-Tangible-Equity is ranked better than 97.64% of 1567
companies
in the Chemicals industry
Industry Median: 5.82
vs RPM: 105.51
RPM International (NYSE:RPM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
RPM International Return-on-Tangible-Equity Related Terms
RPM International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RPM International's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, RPM International's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, RPM International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RPM International's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 122.64% mean?
RPM International (RPM) has a Return-on-Tangible-Equity of 122.64% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RPM International and its competitors. This is near median its historical median of 118.53. Over the past decade, RPM International's Return-on-Tangible-Equity has ranged from 102.89 to 277.86. According to the industry distribution chart, RPM International ranks #37 out of 1567 companies in the Chemicals industry, placing it in the top 2.4%.
Is RPM International's Return-on-Tangible-Equity too high?
RPM International's current Return-on-Tangible-Equity of 122.64% is near median its 10-year median of 118.53. Over the past 10 years, this metric has ranged from a low of 102.89 to a high of 277.86. The Chemicals industry median Return-on-Tangible-Equity is 5.82. RPM International's value of 122.64% is 2007.2% above this industry median. Based on the distribution chart, RPM International ranks #37 out of 1567 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to ALB and SOLS?
According to the Chemicals industry distribution chart, RPM International ranks #37 out of 1567 companies for Return-on-Tangible-Equity. This places RPM International in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.82. RPM International's value of 122.64% is 2007.2% above this benchmark. Historically, RPM International's own Return-on-Tangible-Equity has ranged from 102.89 to 277.86 over the past decade. While the company's 10-year median is 118.53 vs. the industry median of 5.82, 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.82, based on 1,567 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RPM International's current Return-on-Tangible-Equity of 122.64% is 2007.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RPM International and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RPM International's current Return-on-Tangible-Equity is 122.64%, which is near median its own 10-year median of 118.53. 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 Return-on-Tangible-Equity is 122.64%, which is near median its 10-year median of 118.53 and 2007.2% above the Chemicals industry median of 5.82. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For RPM International (RPM), the current Return-on-Tangible-Equity is 122.64% 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:
Return-on-Tangible-Equity: 122.64% (near median its 10-year median of 118.53)
GF Value™: $120.34 vs. price of $107.05 (11% below fair value)
Industry Position: 2007.2% above the Chemicals median (#37 of 1567)
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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