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RPM International Inc. (RPM)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$98.08 - $205.07$138.52
Multi-Stage$84.14 - $91.93$87.96
Blended Fair Value$113.24
Current Price$125.31
Upside-9.63%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.66%6.50%2.001.811.671.601.521.451.421.311.221.13
YoY Growth--10.21%8.40%4.66%4.97%5.20%2.04%8.32%6.84%8.59%6.00%
Dividend Yield--1.59%1.56%1.67%1.71%1.85%1.70%2.09%1.94%2.50%2.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)688.60
(-) Cash Dividends Paid (M)261.19
(=) Cash Retained (M)427.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)137.7286.0851.65
Cash Retained (M)427.41427.41427.41
(-) Cash Required (M)-137.72-86.08-51.65
(=) Excess Retained (M)289.69341.33375.76
(/) Shares Outstanding (M)128.08128.08128.08
(=) Excess Retained per Share2.262.662.93
LTM Dividend per Share2.042.042.04
(+) Excess Retained per Share2.262.662.93
(=) Adjusted Dividend4.304.704.97
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.50%5.50%6.50%
Fair Value$98.08$138.52$205.07
Upside / Downside-21.73%10.55%63.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)688.60726.46766.39808.52852.97899.86926.86
Payout Ratio37.93%48.34%58.76%69.17%79.59%90.00%92.50%
Projected Dividends (M)261.19351.20450.32559.27678.85809.87857.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.50%5.50%6.50%
Year 1 PV (M)318.92321.97325.02
Year 2 PV (M)371.33378.47385.68
Year 3 PV (M)418.77430.91443.28
Year 4 PV (M)461.58479.50497.94
Year 5 PV (M)500.05524.44549.77
PV of Terminal Value (M)8,706.509,131.149,572.19
Equity Value (M)10,777.1511,266.4311,773.88
Shares Outstanding (M)128.08128.08128.08
Fair Value$84.14$87.96$91.93
Upside / Downside-32.85%-29.80%-26.64%

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