Based on the comprehensive data analysis, RPM appears to be fairly valued at current levels. The company's P/E ratio of 27.4x is slightly above industry average, while EV/EBITDA of 17.8x suggests premium valuation .
Financial Performance
Recent quarterly results show stable revenue around $1.8-2.0 billion with improving margins. Gross margin expanded to 41.4% in Q2 2025, while net margin reached 9.9%, demonstrating operational efficiency improvements.
Key Valuation Metrics
- Current P/E: 27.4x
- EV/EBITDA: 17.8x
- P/S: 2.43x
- P/B: 6.57x
- Dividend Yield: 1.36%
Recent Developments
Wells Fargo recently upgraded RPM to Buy with a $140 price target, citing potential housing market recovery benefits. However, JPMorgan maintains a Neutral rating with a lower $124 target, reflecting concerns about earnings estimates.
Technical Analysis
The stock is currently trading below both its 20-day (125.16) and 60-day (129.27) moving averages, with RSI at 40.42 indicating neutral momentum. The Fibonacci support levels suggest key support at $121.66.
Conclusion
RPM's current valuation appears justified given its improving margins and operational execution, though limited near-term catalysts and technical weakness suggest the stock is fairly valued at current levels.