H.B. FULLER CO. (FUL)
US3596941068 - Common Stock
Taking everything into account, FUL scores 5 out of 10 in our fundamental rating. FUL was compared to 83 industry peers in the Chemicals industry. FUL has a medium profitability rating, but doesn't score so well on its financial health evaluation. FUL has a correct valuation and a medium 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.
In the past 5 years FUL always reported a positive cash flow from operatings.
1.2 Ratios
FUL's Return On Assets of 3.35% is fine compared to the rest of the industry. FUL outperforms 61.45% of its industry peers.
Looking at the Return On Equity, with a value of 9.20%, FUL is in the better half of the industry, outperforming 69.88% of the companies in the same industry.
FUL's Return On Invested Capital of 6.03% is fine compared to the rest of the industry. FUL outperforms 63.86% of its industry peers.
FUL had an Average Return On Invested Capital over the past 3 years of 5.40%. This is in line with the industry average of 6.66%.
The 3 year average ROIC (5.40%) for FUL is below the current ROIC(6.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.2% | ||
| ROIC | 6.03% |
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
FUL has a Profit Margin (4.67%) which is comparable to the rest of the industry.
FUL's Profit Margin has declined in the last couple of years.
The Operating Margin of FUL (11.19%) is comparable to the rest of the industry.
FUL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.38%, FUL is in line with its industry, outperforming 59.04% of the companies in the same industry.
In the last couple of years the Gross Margin of FUL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 4.67% | ||
| GM | 30.38% |
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%
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.
Compared to 1 year ago, FUL has more shares outstanding
FUL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FUL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a Altman-Z score of 2.55. This is in the better half of the industry: FUL outperforms 73.49% of its industry peers.
The Debt to FCF ratio of FUL is 7.44, which is on the high side as it means it would take FUL, 7.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.44, FUL perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
FUL has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FUL (1.13) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.78
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.89 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Current ratio of 1.89. This is in the lower half of the industry: FUL underperforms 60.24% of its industry peers.
A Quick Ratio of 1.16 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
FUL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.48%, which is quite good.
Measured over the past 5 years, FUL shows a small growth in Earnings Per Share. The EPS has been growing by 5.17% on average per year.
The Revenue has decreased by -2.10% 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)16.48%
EPS 3Y10.77%
EPS 5Y5.17%
EPS Q2Q%20.43%
Revenue 1Y (TTM)-2.1%
Revenue growth 3Y7.96%
Revenue growth 5Y2.92%
Sales Q2Q%2.1%
3.2 Future
The Earnings Per Share is expected to grow by 13.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y12.61%
EPS Next 2Y13.85%
EPS Next 3Y13.08%
EPS Next 5YN/A
Revenue Next Year2.1%
Revenue Next 2Y3.32%
Revenue Next 3Y3.7%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.43, the valuation of FUL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 65.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. FUL is around the same levels.
Based on the Price/Forward Earnings ratio of 17.03, the valuation of FUL can be described as rather expensive.
FUL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, FUL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
63.86% of the companies in the same industry are more expensive than FUL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 67.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.06 | ||
| EV/EBITDA | 11.51 |
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.
FUL's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)3.95
EPS Next 2Y13.85%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 3.07, FUL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, FUL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.53%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
FUL pays out 27.53% of its income as dividend. This is a sustainable payout ratio.
FUL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.53%
EPS Next 2Y13.85%
EPS Next 3Y13.08%
H.B. FULLER CO.
NYSE:FUL (7/26/2024, 7:04:00 PM)
After market: 85.21 0 (0%)85.21
+1.4 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 20.43 | ||
| Fwd PE | 17.03 | ||
| 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)1.62
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.19% | ||
| PM (TTM) | 4.67% | ||
| GM | 30.38% | ||
| 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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.16 | ||
| 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)16.48%
EPS 3Y10.77%
EPS 5Y
EPS Q2Q%
EPS Next Y12.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.1%
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