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.
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 (2.01%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.50%, FUL is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
FUL has a Return On Invested Capital of 5.04%. This is comparable 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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 5.5% | ||
| ROIC | 5.04% |
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 (2.92%) which is comparable to the rest of the industry.
FUL's Profit Margin has declined in the last couple of years.
FUL's Operating Margin of 9.81% is in line compared to the rest of the industry. FUL outperforms 56.47% of its industry peers.
FUL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.19%, FUL is in line with its industry, outperforming 57.65% of the companies in the same industry.
FUL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| 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
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
An Altman-Z score of 2.21 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a Altman-Z score of 2.21. This is comparable to the rest of the industry: FUL outperforms 56.47% of its industry peers.
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.
FUL has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FUL (1.13) is worse than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.96 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.6
WACC8.41%
2.3 Liquidity
FUL has a Current Ratio of 1.87. This is a normal value and indicates that FUL is financially healthy and should not expect problems in meeting its short term obligations.
FUL has a Current ratio (1.87) which is in line with 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.
FUL has a Quick ratio of 1.15. This is comparable to the rest of the industry: FUL outperforms 49.41% of its industry peers.
| 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%.
Measured over the past 5 years, FUL shows a small growth in Earnings Per Share. The EPS has been growing by 5.34% on average per year.
The Revenue has decreased by -0.09% in the past year.
The Revenue has been growing slightly by 4.26% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.09% 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 1.94% yearly.
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
FUL is valuated correctly with a Price/Earnings ratio of 16.67.
FUL's Price/Earnings ratio is a bit cheaper when compared to the industry. FUL is cheaper than 65.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. FUL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.46, which indicates a correct valuation of FUL.
Based on the Price/Forward Earnings ratio, FUL is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
FUL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 28.95 | ||
| EV/EBITDA | 10.36 |
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)2.3
PEG (5Y)3.12
EPS Next 2Y10.27%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
FUL's Dividend Yield is comparable with the industry average which is at 3.57.
Compared to the average S&P500 Dividend Yield of 2.37, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
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 2Y10.27%
EPS Next 3Y13.09%
62.85
+2.09 (+3.44%)
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 Cap3.41B
Analysts72
Price Target64.01 (1.85%)
Short Float %2.78%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)4.63%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)0.28%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 13.46 | ||
| P/S | 0.97 | ||
| P/FCF | 28.95 | ||
| P/OCF | 14.73 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.36 |
EPS(TTM)3.77
EY6%
EPS(NY)4.67
Fwd EY7.43%
FCF(TTM)2.17
FCFY3.45%
OCF(TTM)4.27
OCFY6.79%
SpS65.1
BVpS34.59
TBVpS-11.87
PEG (NY)2.3
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 5.5% | ||
| ROCE | 7.8% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 12.25% | ||
| OM | 9.81% | ||
| 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 | 4.04 | ||
| Cap/Depr | 64.06% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.17% | ||
| Profit Quality | 114.13% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.21 |
F-Score4
WACC8.41%
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 Y7.24%
EPS Next 2Y10.27%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.09%
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-12.37%
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%