H.B. FULLER CO. (FUL)

US3596941068 - Common Stock

78.18  +2.02 (+2.65%)

Fundamental Rating

5

Taking everything into account, FUL scores 5 out of 10 in our fundamental rating. FUL was compared to 84 industry peers in the Chemicals industry. FUL has only an average score on both its financial health and profitability. FUL has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

FUL had positive earnings in the past year.
In the past year FUL had a positive cash flow from operations.
Each year in the past 5 years FUL has been profitable.
Each year in the past 5 years FUL had a positive operating cash flow.

1.2 Ratios

The Return On Assets of FUL (3.29%) is better than 63.10% of its industry peers.
FUL's Return On Equity of 8.71% is fine compared to the rest of the industry. FUL outperforms 70.24% of its industry peers.
FUL has a Return On Invested Capital of 6.22%. This is in the better half of the industry: FUL outperforms 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FUL is in line with the industry average of 6.70%.
The 3 year average ROIC (5.40%) for FUL is below the current ROIC(6.22%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.29%
ROE 8.71%
ROIC 6.22%
ROA(3y)3.63%
ROA(5y)3.45%
ROE(3y)9.85%
ROE(5y)9.84%
ROIC(3y)5.4%
ROIC(5y)4.96%

1.3 Margins

Looking at the Profit Margin, with a value of 4.38%, FUL is in line with its industry, outperforming 55.95% of the companies in the same industry.
FUL's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.03%, FUL perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Operating Margin of FUL has grown nicely.
FUL has a Gross Margin (29.87%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FUL has remained more or less at the same level.
Industry RankSector Rank
OM 11.03%
PM (TTM) 4.38%
GM 29.87%
OM growth 3Y10.63%
OM growth 5Y5.91%
PM growth 3Y-2.36%
PM growth 5Y-6.02%
GM growth 3Y2.41%
GM growth 5Y1.24%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FUL is destroying value.
The number of shares outstanding for FUL has been increased compared to 1 year ago.
FUL has more shares outstanding than it did 5 years ago.
FUL has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.60 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.60, FUL is doing good in the industry, outperforming 73.81% of the companies in the same industry.
FUL has a debt to FCF ratio of 5.99. This is a neutral value as FUL would need 5.99 years to pay back of all of its debts.
FUL has a Debt to FCF ratio of 5.99. This is in the better half of the industry: FUL outperforms 61.90% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that FUL has dependencies on debt financing.
FUL's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. FUL is outperformed by 67.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF 5.99
Altman-Z 2.6
ROIC/WACC0.79
WACC7.92%

2.3 Liquidity

A Current Ratio of 1.99 indicates that FUL should not have too much problems paying its short term obligations.
FUL's Current ratio of 1.99 is in line compared to the rest of the industry. FUL outperforms 45.24% of its industry peers.
A Quick Ratio of 1.23 indicates that FUL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.23, FUL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 1.23

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.85% over the past year.
FUL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.17% yearly.
The Revenue has decreased by -5.13% in the past year.
Measured over the past years, FUL shows a small growth in Revenue. The Revenue has been growing by 2.92% on average per year.
EPS 1Y (TTM)5.85%
EPS 3Y10.77%
EPS 5Y5.17%
EPS Q2Q%21.82%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y7.96%
Revenue growth 5Y2.92%
Sales Q2Q%0.15%

3.2 Future

Based on estimates for the next years, FUL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.86% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y12.2%
EPS Next 2Y13.62%
EPS Next 3Y12.86%
EPS Next 5YN/A
Revenue Next Year1.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.53%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.64, which indicates a rather expensive current valuation of FUL.
Compared to the rest of the industry, the Price/Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 65.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.24. FUL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of FUL can be described as correct.
FUL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, FUL is valued a bit cheaper.
Industry RankSector Rank
PE 19.64
Fwd PE 15.69

4.2 Price Multiples

FUL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FUL is cheaper than 69.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 76.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.95
EV/EBITDA 10.51

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FUL may justify a higher PE ratio.
A more expensive valuation may be justified as FUL's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.61
PEG (5Y)3.8
EPS Next 2Y13.62%
EPS Next 3Y12.86%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.14%, FUL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.11, FUL has a dividend in line with its industry peers.
With a Dividend Yield of 1.14, FUL pays less dividend than the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

The dividend of FUL has a limited annual growth rate of 5.53%.
FUL has been paying a dividend for at least 10 years, so it has a reliable track record.
FUL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.53%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

28.80% of the earnings are spent on dividend by FUL. This is a low number and sustainable payout ratio.
FUL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.8%
EPS Next 2Y13.62%
EPS Next 3Y12.86%

H.B. FULLER CO.

NYSE:FUL (6/12/2024, 10:21:35 AM)

78.18

+2.02 (+2.65%)

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 RankSector Rank
Dividend Yield 1.14%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Revenue beat(2)
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Revenue beat(8)
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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 RankSector Rank
PE 19.64
Fwd PE 15.69
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)1.61
PEG (5Y)3.8
Profitability
Industry RankSector Rank
ROA 3.29%
ROE 8.71%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.03%
PM (TTM) 4.38%
GM 29.87%
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 Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.99
Quick Ratio 1.23
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)
High Growth Momentum
Growth
EPS 1Y (TTM)5.85%
EPS 3Y10.77%
EPS 5Y
EPS Q2Q%
EPS Next Y12.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y7.96%
Revenue growth 5Y
Sales 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