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RPM International Inc. (RPM)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$106.73 - $239.54$154.56
Multi-Stage$89.99 - $98.35$94.10
Blended Fair Value$124.33
Current Price$125.31
Upside-0.78%
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 Rate8.71%8.71%8.71%
Growth Rate4.50%5.50%6.50%
Fair Value$106.73$154.56$239.54
Upside / Downside-14.83%23.34%91.16%

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 Rate8.71%8.71%8.71%
Growth Rate4.50%5.50%6.50%
Year 1 PV (M)320.01323.07326.13
Year 2 PV (M)373.87381.06388.32
Year 3 PV (M)423.08435.35447.85
Year 4 PV (M)467.92486.09504.79
Year 5 PV (M)508.65533.46559.23
PV of Terminal Value (M)9,433.029,893.0910,370.95
Equity Value (M)11,526.5612,052.1312,597.26
Shares Outstanding (M)128.08128.08128.08
Fair Value$89.99$94.10$98.35
Upside / Downside-28.18%-24.91%-21.51%

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