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. FUL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
FUL had a positive operating cash flow in the past year.
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
The Return On Assets of FUL (2.27%) is comparable to the rest of the industry.
FUL has a Return On Equity of 6.33%. This is in the better half of the industry: FUL outperforms 60.71% of its industry peers.
FUL's Return On Invested Capital of 5.19% is in line compared to the rest of the industry. FUL outperforms 54.76% 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 7.01%.
| 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 (3.17%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FUL has declined.
The Operating Margin of FUL (9.85%) is comparable to the rest of the industry.
FUL's Operating Margin has improved in the last couple of years.
FUL has a Gross Margin (29.94%) 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 | 9.85% | ||
| 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
FUL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FUL has been increased compared to 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 2.18 indicates that FUL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.18, FUL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 29.76, FUL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
FUL has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
FUL has a Debt to Equity ratio of 1.23. This is in the lower half of the industry: FUL underperforms 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 29.76 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.65
WACC8.04%
2.3 Liquidity
FUL has a Current Ratio of 1.97. 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 Current ratio of 1.97 is in line compared to the rest of the industry. FUL outperforms 54.76% of its industry peers.
FUL has a Quick Ratio of 1.21. 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 1.21 is in line compared to the rest of the industry. FUL outperforms 55.95% of 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 -6.78% 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 0.99% 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)-6.78%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.68%
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 12.35% on average per year.
Based on estimates for the next years, FUL will show a small growth in Revenue. The Revenue will grow by 1.75% on average per year.
EPS Next Y4.44%
EPS Next 2Y9.38%
EPS Next 3Y12.35%
EPS Next 5YN/A
Revenue Next Year-2.2%
Revenue Next 2Y0.61%
Revenue Next 3Y1.75%
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 14.48, the valuation of FUL can be described as correct.
Based on the Price/Earnings ratio, FUL is valued a bit cheaper than 60.71% of the companies in the same industry.
FUL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.69, the valuation of FUL can be described as very reasonable.
70.24% of the companies in the same industry are more expensive than FUL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FUL to the average of the S&P500 Index (21.08), we can say FUL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
FUL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FUL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.73 | ||
| EV/EBITDA | 9.53 |
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 12.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.26
PEG (5Y)2.71
EPS Next 2Y9.38%
EPS Next 3Y12.35%
5. Dividend
5.1 Amount
FUL has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 4.02, FUL has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.52, FUL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of FUL is nicely growing with an annual growth rate of 6.60%!
FUL has been paying a dividend for at least 10 years, so it has 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
43.23% 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.
DP43.23%
EPS Next 2Y9.38%
EPS Next 3Y12.35%
53.71
+1.36 (+2.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.41%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change5.59%
Market Cap2.91B
Analysts50.77
Price Target65.03 (21.08%)
Short Float %2.7%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)-14.08%
PT rev (3m)-25.58%
EPS NQ rev (1m)1.77%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-14.26%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.82 | ||
| P/FCF | 39.73 | ||
| P/OCF | 14.4 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.53 |
EPS(TTM)3.71
EY6.91%
EPS(NY)4.59
Fwd EY8.55%
FCF(TTM)1.35
FCFY2.52%
OCF(TTM)3.73
OCFY6.95%
SpS65.45
BVpS32.79
TBVpS-12.58
PEG (NY)3.26
PEG (5Y)2.71
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 | 2.18 |
F-Score5
WACC8.04%
ROIC/WACC0.65
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)-6.78%
EPS 3Y3.43%
EPS 5Y5.34%
EPS Q2Q%-19.4%
EPS Next Y4.44%
EPS Next 2Y9.38%
EPS Next 3Y12.35%
EPS Next 5YN/A
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.87%
Revenue growth 5Y4.26%
Sales Q2Q%-2.68%
Revenue Next Year-2.2%
Revenue Next 2Y0.61%
Revenue Next 3Y1.75%
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%