H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - New York Stock Exchange, Inc. - US3596941068 - Common Stock - Currency: USD
Overall FUL gets a fundamental rating of 4 out of 10. We evaluated FUL against 85 industry peers in the Chemicals industry. There are concerns on the financial health of FUL while its profitability can be described as average. FUL is not valued too expensively and it also shows 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.
In the past 5 years FUL has always been profitable.
Each year in the past 5 years FUL had a positive operating cash flow.
1.2 Ratios
FUL has a Return On Assets (2.27%) which is in line with its industry peers.
FUL has a Return On Equity of 6.33%. This is comparable to the rest of the industry: FUL outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.19%, FUL is in line with its industry, outperforming 54.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FUL is in line with the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.33% | ||
| ROIC | 5.19% |
ROA(3y)3.25%
ROA(5y)3.32%
ROE(3y)8.86%
ROE(5y)9.13%
ROIC(3y)5.75%
ROIC(5y)5.19%
1.3 Margins
FUL has a Profit Margin (3.17%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FUL has declined.
Looking at the Operating Margin, with a value of 9.85%, FUL is in line with its industry, outperforming 54.12% of the companies in the same industry.
FUL's Operating Margin has improved in the last couple of years.
FUL's Gross Margin of 29.94% is in line compared to the rest of the industry. FUL outperforms 57.65% of its industry peers.
In the last couple of years the Gross Margin of FUL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.85% | ||
| PM (TTM) | 3.17% | ||
| GM | 29.94% |
OM growth 3Y10.31%
OM growth 5Y4.56%
PM growth 3Y-9.5%
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
FUL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FUL has been increased compared to 1 year ago.
The number of shares outstanding for FUL has been increased compared to 5 years ago.
The debt/assets ratio for FUL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.20 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a Altman-Z score (2.20) which is comparable to the rest of the industry.
FUL has a debt to FCF ratio of 29.76. This is a negative value and a sign of low solvency as FUL would need 29.76 years to pay back of all of its debts.
FUL has a Debt to FCF ratio of 29.76. This is in the lower half of the industry: FUL underperforms 60.00% of its industry peers.
FUL has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
FUL has a Debt to Equity ratio of 1.23. This is in the lower half of the industry: FUL underperforms 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.62
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.97 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Current ratio (1.97) which is in line with its industry peers.
A Quick Ratio of 1.21 indicates that FUL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, FUL perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for FUL have decreased by -6.78% in the last year.
FUL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
Looking at the last year, FUL shows a small growth in Revenue. The Revenue has grown by 0.99% in the last year.
FUL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
EPS 1Y (TTM)-6.78%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.68%
3.2 Future
The Earnings Per Share is expected to grow by 12.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y6.94%
EPS Next 2Y10.25%
EPS Next 3Y12.69%
EPS Next 5YN/A
Revenue Next Year-2.2%
Revenue Next 2Y0.61%
Revenue Next 3Y1.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.78, which indicates a correct valuation of FUL.
Based on the Price/Earnings ratio, FUL is valued a bit cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of FUL to the average of the S&P500 Index (25.91), we can say FUL is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.75, which indicates a very decent valuation of FUL.
Based on the Price/Forward Earnings ratio, FUL is valued a bit cheaper than the industry average as 68.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.85. FUL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA is on the same level as the industry average.
FUL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.56 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FUL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as FUL's earnings are expected to grow with 12.69% in the coming years.
PEG (NY)2.13
PEG (5Y)2.77
EPS Next 2Y10.25%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 3.70, FUL has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of FUL grows each year by 6.60%, which is quite nice.
FUL has paid a dividend for at least 10 years, which is a reliable track record.
FUL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.6%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
43.23% of the earnings are spent on dividend by FUL. This is a bit on the high side, but may be sustainable.
The dividend of FUL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.23%
EPS Next 2Y10.25%
EPS Next 3Y12.69%
54.83
+0.16 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.41%
Inst Owner Change0.03%
Ins Owners0.28%
Ins Owner Change6.49%
Market Cap2.97B
Analysts72
Price Target64.01 (16.74%)
Short Float %3.47%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.88
Dividend Growth(5Y)6.6%
DP43.23%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-8.62%
Max EPS beat(2)8.19%
EPS beat(4)2
Avg EPS beat(4)-0.39%
Min EPS beat(4)-8.83%
Max EPS beat(4)8.19%
EPS beat(8)4
Avg EPS beat(8)-1.79%
EPS beat(12)6
Avg EPS beat(12)-2.98%
EPS beat(16)8
Avg EPS beat(16)-1.81%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)1.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)1.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.1%
Revenue beat(12)2
Avg Revenue beat(12)-2.75%
Revenue beat(16)5
Avg Revenue beat(16)-1.28%
PT rev (1m)-1.57%
PT rev (3m)-15.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 11.75 | ||
| P/S | 0.84 | ||
| P/FCF | 40.56 | ||
| P/OCF | 14.7 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.64 |
EPS(TTM)3.71
EY6.77%
EPS(NY)4.67
Fwd EY8.51%
FCF(TTM)1.35
FCFY2.47%
OCF(TTM)3.73
OCFY6.8%
SpS65.45
BVpS32.79
TBVpS-12.58
PEG (NY)2.13
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.33% | ||
| ROCE | 8.04% | ||
| ROIC | 5.19% | ||
| ROICexc | 5.32% | ||
| ROICexgc | 12.66% | ||
| OM | 9.85% | ||
| PM (TTM) | 3.17% | ||
| GM | 29.94% | ||
| FCFM | 2.07% |
ROA(3y)3.25%
ROA(5y)3.32%
ROE(3y)8.86%
ROE(5y)9.13%
ROIC(3y)5.75%
ROIC(5y)5.19%
ROICexc(3y)5.97%
ROICexc(5y)5.36%
ROICexgc(3y)13.87%
ROICexgc(5y)12.61%
ROCE(3y)8.93%
ROCE(5y)8.06%
ROICexcg growth 3Y8.3%
ROICexcg growth 5Y2.26%
ROICexc growth 3Y8.14%
ROICexc growth 5Y4.96%
OM growth 3Y10.31%
OM growth 5Y4.56%
PM growth 3Y-9.5%
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y1.51%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 74.19% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.65% | ||
| Profit Quality | 65.1% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.2 |
F-Score5
WACC8.41%
ROIC/WACC0.62
Cap/Depr(3y)80.89%
Cap/Depr(5y)75.34%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.4%
Profit Quality(3y)124.79%
Profit Quality(5y)127.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.78%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-19.4%
EPS Next Y6.94%
EPS Next 2Y10.25%
EPS Next 3Y12.69%
EPS Next 5YN/A
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.68%
Revenue Next Year-2.2%
Revenue Next 2Y0.61%
Revenue Next 3Y1.75%
Revenue Next 5YN/A
EBIT growth 1Y-9.86%
EBIT growth 3Y13.48%
EBIT growth 5Y9.02%
EBIT Next Year43.57%
EBIT Next 3Y18.38%
EBIT Next 5YN/A
FCF growth 1Y-51.49%
FCF growth 3Y11.67%
FCF growth 5Y-4.66%
OCF growth 1Y-27.72%
OCF growth 3Y12.34%
OCF growth 5Y2.36%