H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - New York Stock Exchange, Inc. - US3596941068 - Common Stock - Currency: USD
Taking everything into account, FUL scores 4 out of 10 in our fundamental rating. 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 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 has a Return On Assets of 2.27%. This is comparable to the rest of the industry: FUL outperforms 58.82% of its industry peers.
FUL's Return On Equity of 6.33% is fine compared to the rest of the industry. FUL outperforms 64.71% of its industry peers.
FUL has a Return On Invested Capital (5.19%) which is in line with 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 6.84%.
| 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 of 3.17%. This is comparable to the rest of the industry: FUL outperforms 58.82% of its industry peers.
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.
In the last couple of years the Operating Margin of FUL has grown nicely.
With a Gross Margin value of 29.94%, FUL perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
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.
FUL has more shares outstanding than it did 1 year ago.
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 2.21. 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.
FUL's Altman-Z score of 2.21 is in line compared to the rest of the industry. FUL outperforms 60.00% of its industry peers.
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's Debt to FCF ratio of 29.76 is in line compared to the rest of the industry. FUL outperforms 44.71% of its industry peers.
FUL has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.23, FUL is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.62
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.97 indicates that FUL should not have too much problems paying its short term obligations.
FUL has a Current ratio (1.97) which 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.
FUL has a Quick ratio (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for FUL have decreased by -9.59% in the last year.
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 small growth in Revenue. The Revenue has grown by 1.65% 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)1.65%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.07%
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 13.09% yearly.
The Revenue is expected to grow by 1.94% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y10.27%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue Next Year-1.81%
Revenue Next 2Y0.8%
Revenue Next 3Y1.94%
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
A Price/Earnings ratio of 14.84 indicates a correct valuation of FUL.
67.06% of the companies in the same industry are more expensive than FUL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.69. FUL is valued slightly cheaper when compared to this.
FUL is valuated reasonably with a Price/Forward Earnings ratio of 11.98.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.29, FUL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA ratio is in line with 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 | 41.4 | ||
| EV/EBITDA | 9.76 |
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 13.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)2.78
EPS Next 2Y10.27%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.75, FUL has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.43, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
On average, the dividend of FUL grows each year by 6.60%, which is quite nice.
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 43.23% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FUL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.23%
EPS Next 2Y10.27%
EPS Next 3Y13.09%
55.96
-0.92 (-1.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change0.03%
Ins Owners0.3%
Ins Owner Change6.49%
Market Cap3.03B
Analysts72
Price Target64.01 (14.39%)
Short Float %3.18%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)0.7%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0.28%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.85 | ||
| P/FCF | 41.4 | ||
| P/OCF | 15 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)3.77
EY6.74%
EPS(NY)4.67
Fwd EY8.34%
FCF(TTM)1.35
FCFY2.42%
OCF(TTM)3.73
OCFY6.67%
SpS65.45
BVpS32.79
TBVpS-12.58
PEG (NY)2.05
PEG (5Y)2.78
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
WACC8.36%
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)-9.59%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%5.36%
EPS Next Y7.24%
EPS Next 2Y10.27%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue 1Y (TTM)1.65%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.07%
Revenue Next Year-1.81%
Revenue Next 2Y0.8%
Revenue Next 3Y1.94%
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%