H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - US3596941068 - Common Stock
61.05 USD
+0.08 (+0.13%)
61.05 USD
0 (0%)
FUL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. There are concerns on the financial health of FUL while its profitability can be described as average. FUL has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
FUL's Return On Assets of 2.01% is fine compared to the rest of the industry. FUL outperforms 60.24% of its industry peers.
With a decent Return On Equity value of 5.50%, FUL is doing good in the industry, outperforming 65.06% of the companies in the same industry.
FUL has a Return On Invested Capital (5.07%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FUL is in line with the industry average of 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 5.5% | ||
| ROIC | 5.07% |
ROA(3y)3.25%
ROA(5y)3.32%
ROE(3y)8.86%
ROE(5y)9.13%
ROIC(3y)5.75%
ROIC(5y)5.19%
1.3 Margins
The Profit Margin of FUL (2.92%) is better than 60.24% of its industry peers.
In the last couple of years the Profit Margin of FUL has declined.
FUL has a Operating Margin (9.87%) which is comparable to the rest of the industry.
FUL's Operating Margin has improved in the last couple of years.
FUL's Gross Margin of 30.19% is in line compared to the rest of the industry. FUL outperforms 57.83% of its industry peers.
FUL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 2.92% | ||
| GM | 30.19% |
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
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
FUL has a worse debt/assets ratio than last year.
2.2 Solvency
FUL has an Altman-Z score of 2.19. 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.
Looking at the Altman-Z score, with a value of 2.19, FUL is in line with its industry, outperforming 59.04% of the companies in the same industry.
FUL has a debt to FCF ratio of 17.96. This is a negative value and a sign of low solvency as FUL would need 17.96 years to pay back of all of its debts.
FUL's Debt to FCF ratio of 17.96 is in line compared to the rest of the industry. FUL outperforms 49.40% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that FUL has dependencies on debt financing.
FUL has a worse Debt to Equity ratio (1.13) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.96 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.6
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.87 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Current ratio (1.87) which is in line with its industry peers.
FUL has a Quick Ratio of 1.15. This is a normal value and indicates that FUL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, FUL is in line with its industry, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for FUL have decreased by -9.59% 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.
The Revenue has decreased by -0.09% in the past 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)-9.59%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%5.36%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.07%
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 13.35% on average per year.
The Revenue is expected to grow by 1.64% on average over the next years.
EPS Next Y10.6%
EPS Next 2Y12.12%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue Next Year-2.08%
Revenue Next 2Y0.54%
Revenue Next 3Y1.64%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.19, FUL is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 68.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FUL to the average of the S&P500 Index (27.13), we can say FUL is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.65 indicates a correct valuation of FUL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 67.47% of the companies listed in the same industry.
FUL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FUL is cheaper than 60.24% of the companies in the same industry.
FUL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FUL is cheaper than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 10.1 |
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 13.35% in the coming years.
PEG (NY)1.53
PEG (5Y)3.03
EPS Next 2Y12.12%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, FUL has a dividend in line with its industry peers.
FUL's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
FUL pays out 47.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
FUL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.7%
EPS Next 2Y12.12%
EPS Next 3Y13.35%
61.05
+0.08 (+0.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.8%
Inst Owner Change-3.55%
Ins Owners0.3%
Ins Owner Change0.96%
Market Cap3.29B
Analysts72
Price Target72.68 (19.05%)
Short Float %2.77%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.88
Dividend Growth(5Y)6.6%
DP47.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.27%
Min EPS beat(2)8.19%
Max EPS beat(2)8.35%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-8.83%
Max EPS beat(4)8.35%
EPS beat(8)5
Avg EPS beat(8)0.68%
EPS beat(12)6
Avg EPS beat(12)-2.51%
EPS beat(16)8
Avg EPS beat(16)-1.35%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)1.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)1.53%
Revenue beat(8)1
Avg Revenue beat(8)-2.22%
Revenue beat(12)1
Avg Revenue beat(12)-3%
Revenue beat(16)4
Avg Revenue beat(16)-1.8%
PT rev (1m)0%
PT rev (3m)13.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.63%
EPS NY rev (1m)0%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.65 | ||
| P/S | 0.93 | ||
| P/FCF | 28 | ||
| P/OCF | 14.25 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.1 |
EPS(TTM)3.77
EY6.18%
EPS(NY)4.83
Fwd EY7.91%
FCF(TTM)2.18
FCFY3.57%
OCF(TTM)4.29
OCFY7.02%
SpS65.38
BVpS34.74
TBVpS-11.92
PEG (NY)1.53
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 5.5% | ||
| ROCE | 7.85% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 12.33% | ||
| OM | 9.87% | ||
| PM (TTM) | 2.92% | ||
| GM | 30.19% | ||
| FCFM | 3.33% |
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-Score4
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.96 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 64.06% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.99% | ||
| Profit Quality | 114.13% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.19 |
F-Score4
WACC8.44%
ROIC/WACC0.6
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)-9.59%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%5.36%
EPS Next Y10.6%
EPS Next 2Y12.12%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.07%
Revenue Next Year-2.08%
Revenue Next 2Y0.54%
Revenue Next 3Y1.64%
Revenue Next 5YN/A
EBIT growth 1Y-11.82%
EBIT growth 3Y13.48%
EBIT growth 5Y9.02%
EBIT Next Year47.04%
EBIT Next 3Y18.72%
EBIT Next 5YN/A
FCF growth 1Y-48.96%
FCF growth 3Y11.67%
FCF growth 5Y-4.66%
OCF growth 1Y-38.17%
OCF growth 3Y12.34%
OCF growth 5Y2.36%