RPM Beats Earnings as Stock Trails CEO's August Exit
RPM International beat earnings for three consecutive quarters and paid its $0.57 dividend today, signaling business recovery after a 14.9% miss three quarters ago. However, the stock trades $17.24 be
RPM Pays Dividend Today as Stock Trails CEO's Exit Price
NEW YORK, October 20 —
RPM International Inc. (RPM) collects its $0.57 quarterly dividend today while trading at $99.48, a price $17.24 below where CEO Frank Sullivan sold his largest share block three months ago. Three consecutive earnings beats since the company's worst quarterly miss signal a recovery; the market has yet to agree.
- RPM beat the latest consensus by 1.5% ($1.98 vs. est.), extending a three-quarter recovery streak.
- Sullivan sold 147,282 shares at $116.72 on Aug. 5, per Form 4 filings; shares now trade at $99.48.
- Analyst consensus target is $123.50; trailing operating cash flow is $925 million against $2.43 billion in net debt.
One Bad Quarter, Not a Broken Business
RPM International makes specialty chemicals and construction materials across four segments: roofing systems and insulation (Construction Products); corrosion control coatings and industrial flooring (Performance Coatings); branded paints and caulks sold through hardware retailers (Consumer); and marine finishes and food colorings (Specialty Products). Three quarters ago, the company reported $1.20 per share against a consensus, a 14.9% miss. What followed: a 62.4% positive surprise ($0.57 against a estimate), a 3.3% beat, and most recently $1.98 against a consensus. Trailing revenue of $7.97 billion growing at 4.8% and a 41.2% gross margin support the read that the earlier shortfall was not structural.
Sullivan Sold at the High
The uncomfortable counterweight is the August 5 Form 4 filings. Chairman and CEO Frank Sullivan exercised 200,000 stock options at $62.17 per share, then sold a combined 147,282 shares at $116.72 to cover the exercise cost and tax withholding, a structure standard for executives managing vesting positions. The outcome is plain: those shares now trade at $99.48, $17.24 below Sullivan's exit price. Option-exercise sales are mechanical, not inherently bearish. But at 15.1x forward earnings, three recovery beats have not pushed the stock back toward the $123.50 analyst consensus, let alone the CEO's August exit level.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| RPM | $12.7B | 15.1x | -12.1% |
| SON | $4.9B | 8.1x | +21.0% |
| FUL | $2.7B | 9.9x | -15.3% |
| PPG | $23.9B | 12.5x | +3.0% |
| NDSN | $18.0B | 24.9x | +36.2% |
| CSL | $13.1B | 13.8x | -1.4% |
The One Number That Breaks the Thesis
At $2.43 billion in net debt against $553 million in free cash flow, RPM is not distressed, but paying down debt will take time. The $925 million in operating cash flow sustains a Dividend King payout record, including today's $0.57 dividend due October 30. Three consecutive beats support the recovery thesis, but the test is next quarter: margin contraction confirming the streak peaked with the 62.4% recovery surprise would be the break. Stress-test the FCF base against the analyst consensus target using the DCF calculator, and run the free RPM International Inc. deep-dive → before the next report.
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Frequently Asked Questions
How did RPM perform in the latest quarter?
RPM beat consensus estimates by 1.5%, reporting $1.98 per share versus $1.945 expected. This marks the third consecutive earnings beat, following a 62.4% positive surprise and a 3.3% beat in prior quarters.
When did CEO Frank Sullivan last sell shares?
Frank Sullivan sold 147,282 shares at $116.72 per share on August 5. The stock now trades at $99.48, $17.24 below his exit price.
Does RPM pay a dividend?
RPM pays a quarterly dividend of $0.57 per share, with payment due October 30. The company holds a Dividend King record of consecutive annual dividend payments.
What is the analyst price target for RPM?
Analyst consensus target is $123.50 per share, above both the current trading price of $99.48 and the CEO's August sale price of $116.72.
How leveraged is RPM?
RPM carries $2.43 billion in net debt against $925 million in trailing operating cash flow and $553 million in free cash flow. At current leverage, the company is not distressed but will require time to deleverage.
RPM International's $0.57 quarterly dividend goes ex-date today as shares trade at $99.48 — below the $116.72 price at which CEO Frank Sullivan disposed of 147,282 combined shares in August 2026. Despite three consecutive earnings beats following the company's worst quarterly miss, the stock remains well below the $123.50 analyst consensus target.