RPM InternationalSQM

RPM International vs SQM

This page compares RPM International Inc. and SQM (Chemical & Mining Co. of Chile Inc.). It explores business models, financial performance, and market context in a neutral, accessible way. The compar...

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Investment Analysis

Pros

  • RPM International reported record Q4 2025 sales of $2.08 billion and full-year sales of $7.37 billion, showing steady revenue growth over the previous year.
  • The company achieved an 8.18% earnings per share beat in Q4 2025, with adjusted EPS of $1.72 surpassing forecasts, supported by margin expansion nearing 42%.
  • RPM's MAP 2025 strategic initiative is driving operational efficiencies, including reduced overhead and enhanced collaboration, contributing to double-digit adjusted EBIT growth.

Considerations

  • RPM's stock price has experienced modest volatility, falling 1.84% over the past 12 months despite recent quarterly earnings beats.
  • High price-to-book ratio at 5.3x compared to sector average indicates the stock may be trading at a premium valuation.
  • Dependence on construction and industrial markets could expose RPM to macroeconomic slowdowns impacting demand for specialty coatings and building products.
SQM

SQM

SQM

Pros

  • SQM is a leading global producer in the lithium and specialty chemicals sectors, benefitting from strong demand driven by electric vehicle and battery growth.
  • The companyโ€™s exposure to critical minerals positions it advantageously in the growing renewable energy and electric mobility markets.
  • SQM has a market capitalization of approximately $12 billion, reflecting significant scale and investment interest in its core materials businesses.

Considerations

  • SQM faces regulatory and geopolitical risks associated with operating in Chileโ€™s mining sector, including environmental and indigenous community concerns.
  • The companyโ€™s financial performance is sensitive to volatile commodity prices, particularly lithium and potassium, impacting earnings stability.
  • SQM has experienced cyclical demand fluctuations and supply chain disruptions which may challenge near-term growth and margin expansion.

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