H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - New York Stock Exchange, Inc. - US3596941068 - Common Stock - Currency: USD
FUL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
In the past year FUL was profitable.
FUL had a positive operating cash flow in the past year.
Each year in the past 5 years FUL has been profitable.
FUL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FUL (2.27%) is comparable to the rest of the industry.
FUL has a Return On Equity of 6.33%. This is in the better half of the industry: FUL outperforms 65.88% 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 56.47% of the companies in the same industry.
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 7.03%.
| 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
The Profit Margin of FUL (3.17%) is comparable to the rest of the industry.
FUL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.85%, FUL is in line with its industry, outperforming 56.47% of the companies in the same industry.
In the last couple of years the Operating Margin of FUL has grown nicely.
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
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
FUL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FUL is higher compared to a year ago.
2.2 Solvency
FUL has an Altman-Z score of 2.21. 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 Altman-Z score value of 2.21, FUL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of FUL is 29.76, which is on the high side as it means it would take FUL, 29.76 years of fcf income to pay off all of its debts.
FUL has a Debt to FCF ratio (29.76) which is in line with 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 worse Debt to Equity ratio (1.23) than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.62
WACC8.43%
2.3 Liquidity
FUL has a Current Ratio of 1.97. This is a normal value and indicates that FUL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FUL (1.97) is comparable to the rest of the industry.
FUL has a Quick Ratio of 1.21. This is a normal value and indicates that FUL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FUL (1.21) is comparable to the rest of the 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.
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.
FUL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.75% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.05, which indicates a correct valuation of FUL.
Based on the Price/Earnings ratio, FUL is valued a bit cheaper than 63.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of FUL to the average of the S&P500 Index (26.25), we can say FUL is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.96, which indicates a very decent 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 67.06% of the companies listed in the same industry.
FUL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FUL is on the same level as its industry peers.
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 | 41.3 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FUL's earnings are expected to grow with 12.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)2.82
EPS Next 2Y10.25%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
FUL's Dividend Yield is comparable with the industry average which is at 3.76.
Compared to the average S&P500 Dividend Yield of 2.38, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of FUL is nicely growing with an annual growth rate of 6.60%!
FUL has paid a dividend for at least 10 years, which is a reliable track record.
FUL has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
55.82
-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 Cap3.02B
Analysts72
Price Target64.01 (14.67%)
Short Float %3.47%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)0%
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)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.85 | ||
| P/FCF | 41.3 | ||
| P/OCF | 14.96 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.75 |
EPS(TTM)3.71
EY6.65%
EPS(NY)4.67
Fwd EY8.36%
FCF(TTM)1.35
FCFY2.42%
OCF(TTM)3.73
OCFY6.68%
SpS65.45
BVpS32.79
TBVpS-12.58
PEG (NY)2.17
PEG (5Y)2.82
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 | 2.21 |
F-Score5
WACC8.43%
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%