H.B. FULLER CO. (FUL)
US3596941068 - Common Stock
FUL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 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 valuation in line with the averages, 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.
Each year in the past 5 years FUL had a positive operating cash flow.
1.2 Ratios
FUL has a Return On Assets (3.67%) which is comparable to the rest of the industry.
FUL has a Return On Equity of 9.92%. This is in the better half of the industry: FUL outperforms 68.67% of its industry peers.
With a decent Return On Invested Capital value of 6.12%, FUL is doing good in the industry, outperforming 63.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FUL is in line with the industry average of 7.24%.
The 3 year average ROIC (5.40%) for FUL is below the current ROIC(6.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.92% | ||
| ROIC | 6.12% |
ROA(3y)3.63%
ROA(5y)3.45%
ROE(3y)9.85%
ROE(5y)9.84%
ROIC(3y)5.4%
ROIC(5y)4.96%
1.3 Margins
Looking at the Profit Margin, with a value of 5.15%, FUL is in line with its industry, outperforming 59.04% of the companies in the same industry.
FUL's Profit Margin has declined in the last couple of years.
The Operating Margin of FUL (11.40%) is better than 62.65% of its industry peers.
In the last couple of years the Operating Margin of FUL has grown nicely.
Looking at the Gross Margin, with a value of 30.54%, FUL is in line with its industry, outperforming 57.83% of the companies in the same industry.
FUL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.4% | ||
| PM (TTM) | 5.15% | ||
| GM | 30.54% |
OM growth 3Y10.63%
OM growth 5Y5.91%
PM growth 3Y-2.36%
PM growth 5Y-6.02%
GM growth 3Y2.41%
GM growth 5Y1.24%
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.
Compared to 1 year ago, FUL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a better Altman-Z score (2.40) than 68.67% of its industry peers.
The Debt to FCF ratio of FUL is 7.89, which is on the high side as it means it would take FUL, 7.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FUL (7.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that FUL has dependencies on debt financing.
FUL has a worse Debt to Equity ratio (1.10) than 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.79
WACC7.79%
2.3 Liquidity
FUL has a Current Ratio of 1.89. 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 (1.89) which is in line with its industry peers.
A Quick Ratio of 1.16 indicates that FUL should not have too much problems paying its short term obligations.
The Quick ratio of FUL (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.44% over the past year.
FUL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.17% yearly.
The Revenue has decreased by -0.50% in the past year.
The Revenue has been growing slightly by 2.92% on average over the past years.
EPS 1Y (TTM)18.44%
EPS 3Y10.77%
EPS 5Y5.17%
EPS Q2Q%6.6%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.96%
Revenue growth 5Y2.92%
Sales Q2Q%1.92%
3.2 Future
FUL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.52% yearly.
Based on estimates for the next years, FUL will show a small growth in Revenue. The Revenue will grow by 1.34% on average per year.
EPS Next Y8.74%
EPS Next 2Y10.29%
EPS Next 3Y11.53%
EPS Next 5Y5.52%
Revenue Next Year1.09%
Revenue Next 2Y2.61%
Revenue Next 3Y2.95%
Revenue Next 5Y1.34%
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 stable.
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
Based on the Price/Earnings ratio of 16.08, the valuation of FUL can be described as correct.
Based on the Price/Earnings ratio, FUL is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
FUL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of FUL can be described as correct.
FUL's Price/Forward Earnings ratio is in line with the industry average.
FUL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUL is valued a bit cheaper than 60.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 68.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.54 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FUL may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)3.11
EPS Next 2Y10.29%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
FUL's Dividend Yield is comparable with the industry average which is at 3.14.
With a Dividend Yield of 1.21, FUL pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of FUL has a limited annual growth rate of 5.53%.
FUL has paid a dividend for at least 10 years, which is a reliable track record.
FUL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.53%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
25.48% of the earnings are spent on dividend by FUL. This is a low number and sustainable payout ratio.
FUL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.48%
EPS Next 2Y10.29%
EPS Next 3Y11.53%
H.B. FULLER CO.
NYSE:FUL (12/20/2024, 8:13:40 PM)
After market: 68.16 0 (0%)68.16
-0.89 (-1.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change-1.62%
Ins Owners0.97%
Ins Owner Change0.48%
Market Cap3.72B
Analysts72
Price Target88.23 (29.45%)
Short Float %2.22%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)5.53%
DP25.48%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.56%
Min EPS beat(2)-8.83%
Max EPS beat(2)7.71%
EPS beat(4)3
Avg EPS beat(4)1.42%
Min EPS beat(4)-8.83%
Max EPS beat(4)7.71%
EPS beat(8)3
Avg EPS beat(8)-4.81%
EPS beat(12)6
Avg EPS beat(12)-2.29%
EPS beat(16)9
Avg EPS beat(16)2.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-0.67%
Revenue beat(8)0
Avg Revenue beat(8)-4.34%
Revenue beat(12)2
Avg Revenue beat(12)-2.63%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-3.67%
PT rev (3m)-3.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.52 | ||
| P/S | 1.05 | ||
| P/FCF | 14.54 | ||
| P/OCF | 9.84 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.86 |
EPS(TTM)4.24
EY6.22%
EPS(NY)4.7
Fwd EY6.89%
FCF(TTM)4.69
FCFY6.88%
OCF(TTM)6.93
OCFY10.16%
SpS64.95
BVpS33.7
TBVpS-10.19
PEG (NY)1.84
PEG (5Y)3.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.92% | ||
| ROCE | 9.46% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.32% | ||
| ROICexgc | 15% | ||
| OM | 11.4% | ||
| PM (TTM) | 5.15% | ||
| GM | 30.54% | ||
| FCFM | 7.22% |
ROA(3y)3.63%
ROA(5y)3.45%
ROE(3y)9.85%
ROE(5y)9.84%
ROIC(3y)5.4%
ROIC(5y)4.96%
ROICexc(3y)5.56%
ROICexc(5y)5.11%
ROICexgc(3y)12.92%
ROICexgc(5y)12.34%
ROCE(3y)8.39%
ROCE(5y)7.7%
ROICexcg growth 3Y12.13%
ROICexcg growth 5Y3.77%
ROICexc growth 3Y14.81%
ROICexc growth 5Y6.89%
OM growth 3Y10.63%
OM growth 5Y5.91%
PM growth 3Y-2.36%
PM growth 5Y-6.02%
GM growth 3Y2.41%
GM growth 5Y1.24%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 7.89 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 72.25% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.95% | ||
| Profit Quality | 140.22% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.4 |
F-Score6
WACC7.79%
ROIC/WACC0.79
Cap/Depr(3y)76.69%
Cap/Depr(5y)68.18%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.05%
Profit Quality(3y)107.23%
Profit Quality(5y)134.61%
High Growth Momentum
Growth
EPS 1Y (TTM)18.44%
EPS 3Y10.77%
EPS 5Y5.17%
EPS Q2Q%6.6%
EPS Next Y8.74%
EPS Next 2Y10.29%
EPS Next 3Y11.53%
EPS Next 5Y5.52%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.96%
Revenue growth 5Y2.92%
Sales Q2Q%1.92%
Revenue Next Year1.09%
Revenue Next 2Y2.61%
Revenue Next 3Y2.95%
Revenue Next 5Y1.34%
EBIT growth 1Y15.96%
EBIT growth 3Y19.43%
EBIT growth 5Y9%
EBIT Next Year51.65%
EBIT Next 3Y19.92%
EBIT Next 5YN/A
FCF growth 1Y1661.27%
FCF growth 3Y2.79%
FCF growth 5Y6.98%
OCF growth 1Y275.11%
OCF growth 3Y4.5%
OCF growth 5Y8.36%