H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - New York Stock Exchange, Inc. - US3596941068 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to FUL. FUL was compared to 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FUL was profitable.
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
Looking at the Return On Assets, with a value of 2.01%, FUL is in line with its industry, outperforming 58.82% of the companies in the same industry.
The Return On Equity of FUL (5.50%) is better than 62.35% of its industry peers.
FUL has a Return On Invested Capital (5.07%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FUL is in line with the industry average of 6.83%.
| 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
FUL has a Profit Margin of 2.92%. This is comparable to the rest of the industry: FUL outperforms 57.65% of its industry peers.
FUL's Profit Margin has declined in the last couple of years.
FUL has a Operating Margin (9.87%) which is in line with its industry peers.
FUL's Operating Margin has improved in the last couple of years.
FUL has a Gross Margin of 30.19%. This is comparable to the rest of the industry: FUL outperforms 57.65% 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.
FUL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FUL has been increased compared to 5 years ago.
The debt/assets ratio for FUL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 indicates that FUL is not a great score, but indicates 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 55.29% of the companies in the same industry.
The Debt to FCF ratio of FUL is 17.96, which is on the high side as it means it would take FUL, 17.96 years of fcf income to pay off all of its debts.
FUL has a Debt to FCF ratio of 17.96. This is comparable to the rest of the industry: FUL outperforms 51.76% 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.
Looking at the Debt to Equity ratio, with a value of 1.13, FUL is doing worse than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.96 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.6
WACC8.39%
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 of 1.87. This is comparable to the rest of the industry: FUL outperforms 44.71% of 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.
With a Quick ratio value of 1.15, FUL perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
FUL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.59%.
The Earnings Per Share has been growing slightly by 5.34% on average over the past years.
Looking at the last year, FUL shows a decrease in Revenue. The Revenue has decreased by -0.09% 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)-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.
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
A Price/Earnings ratio of 15.95 indicates a correct valuation of FUL.
Based on the Price/Earnings ratio, FUL is valued a bit cheaper than 65.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. FUL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.46, which indicates a correct valuation of FUL.
FUL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FUL is cheaper than 65.88% of the companies in the same industry.
FUL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FUL.
FUL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FUL is cheaper than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.58 | ||
| EV/EBITDA | 10.12 |
4.3 Compensation for Growth
FUL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FUL's earnings are expected to grow with 13.35% in the coming years.
PEG (NY)1.5
PEG (5Y)2.98
EPS Next 2Y12.12%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, FUL has a reasonable but not impressive dividend return.
FUL's Dividend Yield is comparable with the industry average which is at 3.62.
Compared to the average S&P500 Dividend Yield of 2.34, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 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
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%
60.13
-1.06 (-1.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change6.46%
Market Cap3.24B
Analysts72
Price Target72.68 (20.87%)
Short Float %2.45%
Short Ratio3.09
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)-1.57%
EPS NQ rev (1m)4.43%
EPS NQ rev (3m)4.63%
EPS NY rev (1m)3.43%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.92 | ||
| P/FCF | 27.58 | ||
| P/OCF | 14.03 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.12 |
EPS(TTM)3.77
EY6.27%
EPS(NY)4.83
Fwd EY8.03%
FCF(TTM)2.18
FCFY3.63%
OCF(TTM)4.29
OCFY7.13%
SpS65.38
BVpS34.74
TBVpS-11.92
PEG (NY)1.5
PEG (5Y)2.98
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
WACC8.39%
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 Year43.57%
EBIT Next 3Y18.38%
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%