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RPM International (RPM International) ROE % : 10.40% (As of Feb. 2024)


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What is RPM International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RPM International's annualized net income for the quarter that ended in Feb. 2024 was $245 Mil. RPM International's average Total Stockholders Equity over the quarter that ended in Feb. 2024 was $2,354 Mil. Therefore, RPM International's annualized ROE % for the quarter that ended in Feb. 2024 was 10.40%.

The historical rank and industry rank for RPM International's ROE % or its related term are showing as below:

RPM' s ROE % Range Over the Past 10 Years
Min: 12.95   Med: 22.7   Max: 33.47
Current: 25

During the past 13 years, RPM International's highest ROE % was 33.47%. The lowest was 12.95%. And the median was 22.70%.

RPM's ROE % is ranked better than
94.87% of 1541 companies
in the Chemicals industry
Industry Median: 5.41 vs RPM: 25.00

RPM International ROE % Historical Data

The historical data trend for RPM International's ROE % 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.

* Premium members only.

RPM International ROE % Chart

RPM International Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.56 22.81 33.47 26.40 23.22

RPM International Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.21 28.87 36.38 25.08 10.40

Competitive Comparison of RPM International's ROE %

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

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

* The bar in red indicates where RPM International's ROE % falls into.



RPM International ROE % Calculation

RPM International's annualized ROE % for the fiscal year that ended in May. 2023 is calculated as

ROE %=Net Income (A: May. 2023 )/( (Total Stockholders Equity (A: May. 2022 )+Total Stockholders Equity (A: May. 2023 ))/ count )
=478.691/( (1982.429+2140.84)/ 2 )
=478.691/2061.6345
=23.22 %

RPM International's annualized ROE % for the quarter that ended in Feb. 2024 is calculated as

ROE %=Net Income (Q: Feb. 2024 )/( (Total Stockholders Equity (Q: Nov. 2023 )+Total Stockholders Equity (Q: Feb. 2024 ))/ count )
=244.796/( (2360.554+2346.806)/ 2 )
=244.796/2353.68
=10.40 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2024) net income data. ROE % is displayed in the 30-year financial page.


RPM International  (NYSE:RPM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Feb. 2024 )
=Net Income/Total Stockholders Equity
=244.796/2353.68
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(244.796 / 6091.928)*(6091.928 / 6459.8905)*(6459.8905 / 2353.68)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.02 %*0.943*2.7446
=ROA %*Equity Multiplier
=3.79 %*2.7446
=10.40 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Feb. 2024 )
=Net Income/Total Stockholders Equity
=244.796/2353.68
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (244.796 / 334.324) * (334.324 / 399.208) * (399.208 / 6091.928) * (6091.928 / 6459.8905) * (6459.8905 / 2353.68)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7322 * 0.8375 * 6.55 % * 0.943 * 2.7446
=10.40 %

Note: The net income data used here is four times the quarterly (Feb. 2024) net income data. The Revenue data used here is four times the quarterly (Feb. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


RPM International ROE % Related Terms

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


RPM International (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 distributers, 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 variety 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
Timothy R. Kinser officer: VP-Operations 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frederick R. Nance director 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frank C Sullivan director, officer: President and CEO
Michael J. Laroche officer: VP, Controller & CAO 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
Matthew T Ratajczak officer: VP-Global Tax and Treasurer 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Russell L Gordon officer: VP and CFO 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

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