RPM InternationalAvery Dennison

RPM International vs Avery Dennison

RPM International and Avery Dennison are compared on business models, financial performance, and market context, with neutral explanations and accessible language. The page presents objective context ...

Which Baskets Do They Appear In?

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US Companies Shielded from Fed Tariff Stance 2025

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Navigating Persistent Inflation

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Recent data shows inflation remains stubbornly high, reducing the likelihood of Federal Reserve rate cuts. This environment favors companies with strong pricing power that can protect their profit margins by passing increased costs to consumers.

Published: July 31, 2025

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Investment Analysis

Pros

  • RPM International reported record sales and adjusted earnings in Q4 2025, surpassing analyst expectations with strong revenue growth and margin expansion.
  • The company achieved operational efficiencies through its MAP 2025 strategic initiatives, leading to double-digit adjusted EBIT growth and expanded gross margins near 42%.
  • RPM’s global expansion and product innovation in high-performance building systems underpin its steady sales and profitability growth.

Considerations

  • Revenue growth in fiscal 2025 was modest at around 0.51%, indicating potential challenges in accelerating top-line expansion beyond operational gains.
  • Stock price has shown recent short-term declines, falling consecutively for several days, suggesting some market concerns or profit-taking.
  • Reorganization into three segments carries execution risk as the company transitions to a more integrated operating model aimed at further efficiency and growth.

Pros

  • Avery Dennison has a strong market position across diversified segments including label materials, performance tapes, and digital identification solutions with a global footprint.
  • The company maintains solid profitability with a net income approaching $696 million and a forward P/E ratio around 17, indicating reasonable valuation relative to earnings.
  • Avery Dennison offers a dividend yield of approximately 2.16%, reflecting stable capital allocation and shareholder returns.

Considerations

  • The company faces cyclicality and competitive pressures in packaging and labeling markets, which could impact revenue growth consistency.
  • Recent stock price volatility with its 52-week range showing significant fluctuation may reflect investor uncertainty or sector headwinds.
  • Growth dependence on innovation in materials science and digital solutions poses execution risk amid rapid technological changes and evolving customer demands.

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