NYSE:FUL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products worldwide. More Details


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has H.B. Fuller's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FUL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FUL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.1%

FUL

2.8%

US Chemicals

2.1%

US Market


1 Year Return

7.7%

FUL

15.1%

US Chemicals

19.8%

US Market

Return vs Industry: FUL underperformed the US Chemicals industry which returned 15.1% over the past year.

Return vs Market: FUL underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

FULIndustryMarket
7 Day3.1%2.8%2.1%
30 Day18.8%13.6%8.1%
90 Day9.1%11.3%6.0%
1 Year9.4%7.7%17.7%15.1%22.5%19.8%
3 Year0.5%-3.4%22.8%0.1%46.5%36.8%
5 Year45.9%36.8%78.1%36.7%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is H.B. Fuller's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H.B. Fuller undervalued compared to its fair value and its price relative to the market?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FUL ($53.49) is trading below our estimate of fair value ($55.05)

Significantly Below Fair Value: FUL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FUL is good value based on its PE Ratio (24x) compared to the US Chemicals industry average (29.8x).

PE vs Market: FUL is poor value based on its PE Ratio (24x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FUL is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: FUL is good value based on its PB Ratio (2.1x) compared to the US Chemicals industry average (2.3x).


Next Steps

Future Growth

How is H.B. Fuller forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUL's forecast earnings growth (20.9% per year) is above the savings rate (2.2%).

Earnings vs Market: FUL's earnings (20.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FUL's revenue (3.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FUL's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FUL's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has H.B. Fuller performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FUL has high quality earnings.

Growing Profit Margin: FUL's current net profit margins (4.2%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: FUL's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: FUL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FUL had negative earnings growth (-17.5%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: FUL's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is H.B. Fuller's financial position?


Financial Position Analysis

Short Term Liabilities: FUL's short term assets ($989.4M) exceed its short term liabilities ($455.4M).

Long Term Liabilities: FUL's short term assets ($989.4M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: FUL's debt to equity ratio (145.1%) is considered high.

Reducing Debt: FUL's debt to equity ratio has increased from 80.1% to 145.1% over the past 5 years.

Debt Coverage: FUL's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: FUL's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Next Steps

Dividend

What is H.B. Fuller current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FUL's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FUL's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: FUL's dividends per share have been stable in the past 10 years.

Growing Dividend: FUL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), FUL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FUL's dividends in 3 years are forecast to be well covered by earnings (17.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Jim Owens (55 yo)

10yrs

Tenure

US$5,792,948

Compensation

Mr. James J. Owens, also known as Jim, has been the Chief Executive Officer and President of H.B. Fuller Company since November 22, 2010. Mr. Owens served as the Senior Vice President of North America Regi...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD5.15M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Owens
President10yrsUS$5.79m0.39%
$ 11.0m
John Corkrean
Executive VP & CFO4.5yrsUS$1.44m0.055%
$ 1.5m
Traci Jensen
Vice President of Global Business Process Improvement9yrsUS$1.31m0.030%
$ 844.1k
Theodore Clark
Executive VP & Chief Operating Officer1.08yrsno data0.019%
$ 537.4k
Barbara Doyle
Vice President of Investor Relations2.25yrsno datano data
Timothy Keenan
VP, General Counsel & Corporate Secretary14.92yrsUS$598.25k0.043%
$ 1.2m
Nathan Weaver
Vice President of Human Resources & Communications0.83yrno data0.0062%
$ 172.4k
Steven Kenny
Senior Vice President of Emerging Markets11.08yrsUS$1.09mno data
Zhiwei Cai
Executive Vice President of Engineering Adhesives2.83yrsUS$1.49m0.047%
$ 1.3m
Andrew Tometich
Executive Vice President of Hygiene1.08yrsno data0.015%
$ 416.8k
Shahbaz Malik
Senior Vice President of Global Construction Adhesives1.83yrsno datano data
Robert Martsching
VP & Corporate Controller6.83yrsno data0.019%
$ 539.7k

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: FUL's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Owens
President10yrsUS$5.79m0.39%
$ 11.0m
John van Roden
Independent Director16.92yrsUS$225.00k0.029%
$ 804.1k
Daniel Florness
Independent Director2.33yrsUS$233.39kno data
Lee Mitau
Independent Chairman & Presiding Director13.92yrsUS$304.20k0.083%
$ 2.3m
Dante Parrini
Independent Director8.17yrsUS$205.00k0.0026%
$ 72.0k
Robert Van Sant
Independent Vice Chairman9.83yrsUS$264.50k0%
$ 0
Thomas W. Handley
Independent Director10.33yrsUS$214.11k0.0026%
$ 72.3k
Maria Hilado
Independent Director7.08yrsUS$214.00k0.0026%
$ 72.3k
Ruth Kimmelshue
Independent Director7.83yrsUS$205.91k0.0026%
$ 72.6k

9.8yrs

Average Tenure

57yo

Average Age

Experienced Board: FUL's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FUL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

H.B. Fuller Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H.B. Fuller Company
  • Ticker: FUL
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$2.780b
  • Shares outstanding: 51.74m
  • Website: https://www.hbfuller.com

Number of Employees


Location

  • H.B. Fuller Company
  • 1200 Willow Lake Boulevard
  • PO Box 64683
  • Saint Paul
  • Minnesota
  • 55110-5101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FULNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
HB1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products wor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:05
End of Day Share Price2020/11/27 00:00
Earnings2020/08/29
Annual Earnings2019/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.