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. While FUL is still in line with the averages on profitability rating, there are concerns on its financial health. FUL has a correct valuation and a medium growth rate.
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.
In the past 5 years FUL always reported a positive cash flow from operatings.
1.2 Ratios
FUL's Return On Assets of 2.27% is in line compared to the rest of the industry. FUL outperforms 57.65% of its industry peers.
Looking at the Return On Equity, with a value of 6.33%, FUL is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
FUL's Return On Invested Capital of 5.19% is in line compared to the rest of the industry. FUL outperforms 52.94% of its industry peers.
FUL had an Average Return On Invested Capital over the past 3 years of 5.75%. This is in line with the industry average of 7.11%.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of FUL has declined.
With a Operating Margin value of 9.85%, FUL perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
FUL's Operating Margin has improved in the last couple of years.
FUL has a Gross Margin (29.94%) which is in line with its industry peers.
FUL's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FUL is destroying value.
Compared to 1 year ago, FUL has more shares outstanding
FUL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FUL has a worse debt to assets ratio.
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.
With a decent Altman-Z score value of 2.19, FUL is doing good in the industry, outperforming 63.53% of the companies in the same 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.
The Debt to FCF ratio of FUL (29.76) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that FUL has dependencies on debt financing.
FUL's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. FUL is outperformed by 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.63
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.97 indicates that FUL should not have too much problems paying its short term obligations.
The Current ratio of FUL (1.97) is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that FUL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, FUL is in line with its industry, 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
FUL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.78%.
FUL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
FUL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.99%.
The Revenue has been growing slightly by 4.26% on average over the past years.
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
FUL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.69% yearly.
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 14.46, which indicates a correct valuation of FUL.
FUL's Price/Earnings ratio is a bit cheaper when compared to the industry. FUL is cheaper than 67.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. FUL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.50, which indicates a very decent valuation of FUL.
68.24% of the companies in the same industry are more expensive than FUL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FUL to the average of the S&P500 Index (20.74), we can say FUL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FUL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.7 | ||
| EV/EBITDA | 9.59 |
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)2.08
PEG (5Y)2.71
EPS Next 2Y10.25%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
FUL's Dividend Yield is comparable with the industry average which is at 3.81.
FUL's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of FUL is nicely growing with an annual growth rate of 6.60%!
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)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.
FUL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.23%
EPS Next 2Y10.25%
EPS Next 3Y12.69%
53.66
-0.66 (-1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.41%
Inst Owner Change-0.72%
Ins Owners0.28%
Ins Owner Change6.49%
Market Cap2.91B
Analysts72
Price Target64.01 (19.29%)
Short Float %3.56%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)1.61%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)2.39%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.82 | ||
| P/FCF | 39.7 | ||
| P/OCF | 14.38 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.59 |
EPS(TTM)3.71
EY6.91%
EPS(NY)4.67
Fwd EY8.7%
FCF(TTM)1.35
FCFY2.52%
OCF(TTM)3.73
OCFY6.95%
SpS65.45
BVpS32.79
TBVpS-12.58
PEG (NY)2.08
PEG (5Y)2.71
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 | 2.19 |
F-Score5
WACC8.23%
ROIC/WACC0.63
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%