H.B. FULLER CO. (FUL) Stock Fundamental Analysis
USA - NYSE:FUL - US3596941068 - Common Stock
60.81 USD
-0.8 (-1.3%)
60.811 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FUL. FUL was compared to 83 industry peers in the Chemicals industry. There are concerns on the financial health of FUL while its profitability can be described as average. FUL is valued correctly, but it does not seem to be growing.
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.
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
With a decent Return On Assets value of 2.01%, FUL is doing good in the industry, outperforming 60.24% of the companies in the same industry.
The Return On Equity of FUL (5.50%) is better than 65.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.07%, FUL is in line with its industry, outperforming 59.04% 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 6.34%.
| 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
The Profit Margin of FUL (2.92%) is better than 60.24% of its industry peers.
In the last couple of years the Profit Margin of FUL has declined.
Looking at the Operating Margin, with a value of 9.87%, FUL is in line with its industry, outperforming 59.04% of the companies in the same industry.
In the last couple of years the Operating Margin of FUL has grown nicely.
FUL has a Gross Margin (30.19%) 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 | 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.
FUL has more shares outstanding than it did 5 years ago.
FUL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.20 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FUL has a Altman-Z score (2.20) which is comparable to the rest of the 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's Debt to FCF ratio of 17.96 is in line compared to the rest of the industry. FUL outperforms 49.40% 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 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.96 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.6
WACC8.51%
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.
The Current ratio of FUL (1.87) is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that FUL should not have too much problems paying its short term obligations.
The Quick ratio of FUL (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for FUL have decreased by -9.59% in the last year.
FUL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
The Revenue has decreased by -0.09% in the past year.
Measured over the past years, FUL shows a small growth in Revenue. The Revenue has been growing by 4.26% on average per year.
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 1.61% 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-2.14%
Revenue Next 2Y0.53%
Revenue Next 3Y1.61%
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.
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 16.13.
FUL's Price/Earnings ratio is a bit cheaper when compared to the industry. FUL is cheaper than 67.47% of the companies in the same industry.
FUL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
FUL is valuated correctly with a Price/Forward Earnings ratio of 12.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUL indicates a somewhat cheap valuation: FUL is cheaper than 65.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FUL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.6 |
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.
Based on the Price/Free Cash Flow ratio, FUL is valued a bit cheaper than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
FUL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FUL may justify a higher PE ratio.
FUL's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)3.02
EPS Next 2Y12.12%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
FUL's Dividend Yield is comparable with the industry average which is at 3.43.
FUL's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of FUL grows each year by 6.60%, which is quite nice.
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)6.6%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
47.70% of the earnings are spent on dividend by FUL. 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.
DP47.7%
EPS Next 2Y12.12%
EPS Next 3Y13.35%
60.81
-0.8 (-1.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.8%
Inst Owner Change-3.55%
Ins Owners0.3%
Ins Owner Change0.96%
Market Cap3.28B
Analysts72
Price Target73.69 (21.18%)
Short Float %2.53%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)1.4%
PT rev (3m)15.14%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)3.97%
EPS NY rev (1m)0%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.93 | ||
| P/FCF | 27.89 | ||
| P/OCF | 14.19 | ||
| P/B | 1.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.16 |
EPS(TTM)3.77
EY6.2%
EPS(NY)4.83
Fwd EY7.94%
FCF(TTM)2.18
FCFY3.59%
OCF(TTM)4.29
OCFY7.05%
SpS65.38
BVpS34.74
TBVpS-11.92
PEG (NY)1.52
PEG (5Y)3.02
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 | 2.2 |
F-Score4
WACC8.51%
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-2.14%
Revenue Next 2Y0.53%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-11.82%
EBIT growth 3Y13.48%
EBIT growth 5Y9.02%
EBIT Next Year47.04%
EBIT Next 3Y18.72%
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%