H.B. FULLER CO. (FUL)
US3596941068 - Common Stock
We assign a fundamental rating of 5 out of 10 to FUL. FUL was compared to 85 industry peers in the Chemicals industry. FUL has only an average score on both its financial health and profitability. FUL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FUL was profitable.
FUL had a positive operating cash flow in the past year.
Each year in the past 5 years FUL has been profitable.
FUL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FUL's Return On Assets of 3.18% is in line compared to the rest of the industry. FUL outperforms 52.38% of its industry peers.
FUL's Return On Equity of 8.58% is in line compared to the rest of the industry. FUL outperforms 52.38% of its industry peers.
FUL has a Return On Invested Capital (6.04%) which is in line with its industry peers.
FUL had an Average Return On Invested Capital over the past 3 years of 5.13%. This is below the industry average of 7.81%.
The 3 year average ROIC (5.13%) for FUL is below the current ROIC(6.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 8.58% | ||
| ROIC | 6.04% |
ROA(3y)3.63%
ROA(5y)3.65%
ROE(3y)10.09%
ROE(5y)11.16%
ROIC(3y)5.13%
ROIC(5y)5.01%
1.3 Margins
With a Profit Margin value of 4.16%, FUL perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
FUL's Profit Margin has improved in the last couple of years.
FUL has a Operating Margin (9.78%) which is in line with its industry peers.
FUL's Operating Margin has improved in the last couple of years.
FUL has a Gross Margin of 27.81%. This is comparable to the rest of the industry: FUL outperforms 51.19% of its industry peers.
FUL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.78% | ||
| PM (TTM) | 4.16% | ||
| GM | 27.81% |
OM growth 3Y1.17%
OM growth 5Y10.47%
PM growth 3Y2.13%
PM growth 5Y13.3%
GM growth 3Y-2.73%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FUL is destroying value.
Compared to 1 year ago, FUL has more shares outstanding
Compared to 5 years ago, FUL has more shares outstanding
Compared to 1 year ago, FUL has a worse debt to assets ratio.
2.2 Solvency
FUL has an Altman-Z score of 2.59. This is not the best score and indicates that FUL is in the grey zone with still only limited risk for bankruptcy at the moment.
FUL has a Altman-Z score of 2.59. This is in the better half of the industry: FUL outperforms 66.67% of its industry peers.
The Debt to FCF ratio of FUL is 6.65, which is on the high side as it means it would take FUL, 6.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.65, FUL is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
FUL has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
FUL's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. FUL is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.72
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.01 indicates that FUL has no problem at all paying its short term obligations.
With a Current ratio value of 2.01, FUL perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that FUL should not have too much problems paying its short term obligations.
FUL's Quick ratio of 1.24 is in line compared to the rest of the industry. FUL outperforms 48.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
FUL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.82%.
FUL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
FUL shows a decrease in Revenue. In the last year, the revenue decreased by -3.31%.
The Revenue has been growing by 10.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.82%
EPS 3Y10.65%
EPS 5Y9.91%
EPS growth Q2Q0%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y8.98%
Revenue growth 5Y10.21%
Revenue growth Q2Q-4.31%
3.2 Future
FUL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.05% yearly.
The Revenue is expected to grow by 1.12% on average over the next years.
EPS Next Y-3.82%
EPS Next 2Y5.1%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue Next Year-7.09%
Revenue Next 2Y-1.56%
Revenue Next 3Y1.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.02, the valuation of FUL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as FUL.
FUL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.97, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.80, which indicates a rather expensive current valuation of FUL.
FUL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.05, FUL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 17.8 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FUL is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
The decent profitability rating of FUL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y5.1%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.04%.
FUL's Dividend Yield is comparable with the industry average which is at 3.90.
With a Dividend Yield of 1.04, FUL pays less dividend than the S&P500 average, which is at 2.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of FUL has a limited annual growth rate of 4.56%.
FUL has paid a dividend for at least 10 years, which is a reliable track record.
FUL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.56%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
28.61% of the earnings are spent on dividend by FUL. This is a low number and sustainable payout ratio.
The dividend of FUL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.61%
EPS Next 2Y5.1%
EPS Next 3Y8.05%
H.B. FULLER CO.
NYSE:FUL (12/8/2023, 7:04:00 PM)
After market: 78.84 0 (0%)78.84
-0.27 (-0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 17.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 8.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.78% | ||
| PM (TTM) | 4.16% | ||
| GM | 27.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.82%
EPS 3Y10.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y8.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y