H.B. FULLER CO. (FUL) Stock Fundamental Analysis
NYSE:FUL - New York Stock Exchange, Inc. - US3596941068 - Common Stock - Currency: USD
Overall FUL gets a fundamental rating of 4 out of 10. We evaluated FUL against 85 industry peers in the Chemicals industry. There are concerns on the financial health of FUL while its profitability can be described as average. 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.
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
With a Return On Assets value of 2.64%, FUL perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
FUL has a Return On Equity (7.12%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.68%, FUL is in the better half of the industry, outperforming 60.24% 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 6.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.12% | ||
| ROIC | 5.68% |
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
Looking at the Profit Margin, with a value of 3.65%, FUL is in line with its industry, outperforming 55.42% of the companies in the same industry.
In the last couple of years the Profit Margin of FUL has declined.
FUL's Operating Margin of 10.38% is in line compared to the rest of the industry. FUL outperforms 54.22% of its industry peers.
FUL's Operating Margin has improved in the last couple of years.
FUL has a Gross Margin (30.10%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FUL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.38% | ||
| PM (TTM) | 3.65% | ||
| GM | 30.1% |
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 2.26. 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 has a Altman-Z score of 2.26. This is in the better half of the industry: FUL outperforms 63.86% of its industry peers.
FUL has a debt to FCF ratio of 12.32. This is a negative value and a sign of low solvency as FUL would need 12.32 years to pay back of all of its debts.
FUL has a Debt to FCF ratio of 12.32. This is comparable to the rest of the industry: FUL outperforms 51.81% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that FUL has dependencies on debt financing.
The Debt to Equity ratio of FUL (1.10) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 12.32 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.68
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.81 indicates that FUL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.81, FUL is doing worse than 61.45% of the companies in the same industry.
FUL has a Quick Ratio of 1.16. This is a normal value and indicates that FUL is financially healthy and should not expect problems in meeting its short term obligations.
FUL's Quick ratio of 1.16 is in line compared to the rest of the industry. FUL outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
FUL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.52%.
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)-0.52%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-30.3%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%2.26%
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 12.80% on average per year.
The Revenue is expected to grow by 2.32% on average over the next years.
EPS Next Y6.17%
EPS Next 2Y10.46%
EPS Next 3Y12.8%
EPS Next 5YN/A
Revenue Next Year-2.83%
Revenue Next 2Y0.5%
Revenue Next 3Y2.32%
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
Based on the Price/Earnings ratio of 14.93, the valuation of FUL can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 71.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, FUL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.06, which indicates a correct 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 67.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, FUL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 14.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUL is valued a bit cheaper than 62.65% of the companies in the same industry.
FUL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FUL is cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 9.13 |
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 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)2.79
EPS Next 2Y10.46%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.51%.
In the last 3 months the price of FUL has falen by -24.72%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.28, FUL has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 36.54% of its income as dividend. This is a sustainable payout ratio.
The dividend of FUL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.54%
EPS Next 2Y10.46%
EPS Next 3Y12.8%
57.33
-1.8 (-3.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.41%
Inst Owner Change-91.73%
Ins Owners0.28%
Ins Owner Change6.07%
Market Cap3.13B
Analysts70
Price Target75.68 (32.01%)
Short Float %2.36%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend0.88
Dividend Growth(5Y)6.6%
DP36.54%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.73%
Min EPS beat(2)-8.83%
Max EPS beat(2)-8.62%
EPS beat(4)2
Avg EPS beat(4)-1.41%
Min EPS beat(4)-8.83%
Max EPS beat(4)7.71%
EPS beat(8)3
Avg EPS beat(8)-3.78%
EPS beat(12)6
Avg EPS beat(12)-3%
EPS beat(16)8
Avg EPS beat(16)0.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)-0.29%
Revenue beat(8)0
Avg Revenue beat(8)-3.66%
Revenue beat(12)2
Avg Revenue beat(12)-2.57%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)-13.39%
PT rev (3m)-14.22%
EPS NQ rev (1m)-29.46%
EPS NQ rev (3m)-44.74%
EPS NY rev (1m)-12.84%
EPS NY rev (3m)-13.17%
Revenue NQ rev (1m)-9.15%
Revenue NQ rev (3m)-11.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 14.06 | ||
| P/S | 0.88 | ||
| P/FCF | 19.21 | ||
| P/OCF | 10.37 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.13 |
EPS(TTM)3.84
EY6.7%
EPS(NY)4.08
Fwd EY7.11%
FCF(TTM)2.98
FCFY5.21%
OCF(TTM)5.53
OCFY9.65%
SpS65.27
BVpS33.44
TBVpS-8.66
PEG (NY)2.42
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.12% | ||
| ROCE | 8.79% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 13.73% | ||
| OM | 10.38% | ||
| PM (TTM) | 3.65% | ||
| GM | 30.1% | ||
| FCFM | 4.57% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 12.32 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 79.7% | ||
| Cap/Sales | 3.9% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 55.49% | ||
| Profit Quality | 125.29% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.26 |
F-Score5
WACC8.4%
ROIC/WACC0.68
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)-0.52%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-30.3%
EPS Next Y6.17%
EPS Next 2Y10.46%
EPS Next 3Y12.8%
EPS Next 5YN/A
Revenue 1Y (TTM)1.65%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%2.26%
Revenue Next Year-2.83%
Revenue Next 2Y0.5%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
EBIT growth 1Y-2.49%
EBIT growth 3Y13.48%
EBIT growth 5Y9.02%
EBIT Next Year44%
EBIT Next 3Y19.22%
EBIT Next 5YN/A
FCF growth 1Y-37.05%
FCF growth 3Y11.67%
FCF growth 5Y-4.66%
OCF growth 1Y-20.07%
OCF growth 3Y12.34%
OCF growth 5Y2.36%