H.B. FULLER CO. (FUL)
US3596941068 - Common Stock
We assign a fundamental rating of 5 out of 10 to FUL. FUL was compared to 85 industry peers in the Chemicals industry. Both the profitability and the financial health of FUL get a neutral evaluation. Nothing too spectacular is happening here. FUL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FUL had positive earnings in the past year.
FUL had a positive operating cash flow in the past year.
In the past 5 years FUL has always been profitable.
FUL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FUL's Return On Assets of 3.29% is in line compared to the rest of the industry. FUL outperforms 57.65% of its industry peers.
With a decent Return On Equity value of 8.71%, FUL is doing good in the industry, outperforming 62.35% of the companies in the same industry.
FUL has a better Return On Invested Capital (6.22%) than 61.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FUL is below the industry average of 7.47%.
The last Return On Invested Capital (6.22%) for FUL is above the 3 year average (5.40%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
FUL's Profit Margin of 4.38% is in line compared to the rest of the industry. FUL outperforms 52.94% of its industry peers.
FUL's Profit Margin has declined in the last couple of years.
FUL has a Operating Margin (11.03%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FUL has grown nicely.
Looking at the Gross Margin, with a value of 29.87%, FUL is in line with its industry, outperforming 58.82% of the companies in the same industry.
FUL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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 2.59 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a better Altman-Z score (2.59) than 70.59% of its industry peers.
The Debt to FCF ratio of FUL is 5.99, which is a neutral value as it means it would take FUL, 5.99 years of fcf income to pay off all of its debts.
FUL has a better Debt to FCF ratio (5.99) than 64.71% of its industry peers.
FUL has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
FUL has a worse Debt to Equity ratio (1.04) than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.78
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.99 indicates that FUL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, FUL is in line with its industry, outperforming 47.06% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Quick ratio of 1.23. This is comparable to the rest of the industry: FUL outperforms 44.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.85% over the past year.
The Earnings Per Share has been growing slightly by 5.17% on average over the past years.
FUL shows a decrease in Revenue. In the last year, the revenue decreased by -5.13%.
FUL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.92% yearly.
EPS 1Y (TTM)5.85%
EPS 3Y10.77%
EPS 5Y5.17%
EPS growth Q2Q21.82%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y7.96%
Revenue growth 5Y2.92%
Revenue growth Q2Q0.15%
3.2 Future
The Earnings Per Share is expected to grow by 12.86% on average over the next years. This is quite good.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FUL is valuated rather expensively with a Price/Earnings ratio of 18.51.
FUL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. FUL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.79, the valuation of FUL can be described as correct.
FUL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FUL is cheaper than 68.24% of the companies in the same industry.
FUL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUL is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FUL is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.15 | ||
| EV/EBITDA | 10.41 |
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)1.52
PEG (5Y)3.58
EPS Next 2Y13.62%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, FUL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, FUL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FUL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
As FUL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.53%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
28.80% of the earnings are spent on dividend by FUL. This is a low number and sustainable payout ratio.
The dividend of FUL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.8%
EPS Next 2Y13.62%
EPS Next 3Y12.86%
H.B. FULLER CO.
NYSE:FUL (4/25/2024, 7:04:00 PM)
After market: 73.68 0 (0%)73.68
-1.38 (-1.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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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 | 18.51 | ||
| Fwd PE | 14.79 | ||
| 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)1.52
PEG (5Y)3.58
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)5.85%
EPS 3Y10.77%
EPS 5Y
EPS growth 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
Revenue growth 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