NYSE:FUL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 18.8% below its fair value

Earnings are forecast to grow 18.19% per year

Earnings grew by 13.5% over the past year

Pays a reliable dividend of 1.3%

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Celanese

NYSE:CE

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

FUL

3.1%

US Chemicals

2.0%

US Market


1 Year Return

8.5%

FUL

-0.6%

US Chemicals

23.5%

US Market

Return vs Industry: FUL exceeded the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: FUL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FULIndustryMarket
7 Day2.6%3.1%2.0%
30 Day-2.8%1.1%4.3%
90 Day3.6%6.4%12.2%
1 Year9.9%8.5%15.1%-0.6%26.1%23.5%
3 Year6.1%2.3%36.2%10.7%53.1%43.2%
5 Year29.2%21.5%50.0%17.9%75.5%56.1%

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?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FUL ($49.33) is trading below our estimate of fair value ($60.73)

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 (17.9x) compared to the Chemicals industry average (20.8x).

PE vs Market: FUL is good value based on its PE Ratio (17.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FUL is good value based on its PEG Ratio (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 (2.2x).


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?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUL's forecast earnings growth (18.2% per year) is above the savings rate (1.7%).

Earnings vs Market: FUL's earnings (18.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: FUL's earnings are forecast to grow, but not significantly.

Revenue vs Market: FUL's revenue (3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FUL's revenue (3% 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 (13.8%).


Next Steps

Past Performance

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

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FUL has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: FUL's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: FUL's earnings growth over the past year (13.5%) is below its 5-year average (17.1% per year).

Earnings vs Industry: FUL earnings growth over the past year (13.5%) exceeded the Chemicals industry -17%.


Return on Equity

High ROE: FUL's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: FUL's short term assets ($1.1B) exceed its short term liabilities ($457.6M).

Long Term Liabilities: FUL's short term assets ($1.1B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: FUL's debt to equity ratio (180.4%) is considered high.

Reducing Debt: FUL's debt to equity ratio has increased from 59% to 180.4% over the past 5 years.

Debt Coverage: FUL's debt is not well covered by operating cash flow (14.5%).

Interest Coverage: FUL's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: FUL has a high level of physical assets or inventory.

Debt Coverage by Assets: FUL's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: FUL's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FUL's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 low payout ratio (22.9%), 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 (16.4% payout ratio).


Next Steps

Management

What is the CEO of H.B. Fuller's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Jim Owens (54yo)

9.2yrs

Tenure

US$4,619,550

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 ($USD0.00) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

3.7yrs

Average Tenure

53.5yo

Average Age

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


Board Age and Tenure

9.1yrs

Average Tenure

64yo

Average Age

Experienced Board: FUL's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$516,66726 Dec 19
Robert Van Sant
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares10,000
Max PriceUS$51.67
SellUS$83,78631 Oct 19
Robert Martsching
EntityIndividual
Shares1,700
Max PriceUS$49.29
SellUS$157,09419 Feb 19
Robert Martsching
EntityIndividual
Shares3,215
Max PriceUS$48.86

Ownership Breakdown

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


Management Team

  • Barbara Doyle

    Vice President of Investor Relations

    • Tenure: 1.4yrs
  • Ted Clark

    Executive VP & Chief Operating Officer

    • Tenure: 0.3yrs
  • Steve Kenny (57yo)

    Senior Vice President of Emerging Markets

    • Tenure: 10.3yrs
    • Compensation: US$1.09m
  • Tim Keenan (61yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 14.1yrs
    • Compensation: US$598.25k
  • John Corkrean (53yo)

    Executive VP & CFO

    • Tenure: 3.7yrs
    • Compensation: US$1.21m
  • Jim Owens (54yo)

    President

    • Tenure: 9.2yrs
    • Compensation: US$4.62m
  • Andy Tometich (52yo)

    Executive Vice President of Hygiene

    • Tenure: 0.3yrs
  • Traci Jensen (52yo)

    Vice President of Global Business Process Improvement

    • Tenure: 8.2yrs
    • Compensation: US$1.16m
  • Zhiwei Cai (56yo)

    Executive Vice President of Engineering Adhesives

    • Tenure: 2yrs
    • Compensation: US$1.49m
  • Paula Cooney (50yo)

    Vice President of Human Resources

    • Tenure: 3.8yrs

Board Members

  • John van Roden (69yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$212.89k
  • Dan Florness (56yo)

    Independent Director

    • Tenure: 1.5yrs
  • Lee Mitau (70yo)

    Independent Chairman & Presiding Director

    • Tenure: 13.1yrs
    • Compensation: US$297.99k
  • Dante Parrini (54yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$208.45k
  • Mike Losh (73yo)

    Independent Director

    • Tenure: 19yrs
    • Compensation: US$200.00k
  • Bill Van Sant (80yo)

    Vice Chairman

    • Tenure: 9yrs
    • Compensation: US$257.94k
  • Tom Handley (64yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$208.51k
  • Tessa Hilado (54yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$210.38k
  • Jim Owens (54yo)

    President

    • Tenure: 9.2yrs
    • Compensation: US$4.62m
  • Ruth Kimmelshue

    Director

    • Tenure: 2.3yrs

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$2.521b
  • Shares outstanding: 50.98m
  • Website: https://www.hbfuller.com

Number of Employees


Location

  • H.B. Fuller Company
  • 1200 Willow Lake Boulevard
  • PO Box 64683
  • Saint Paul
  • Minnesota
  • 55164
  • 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, and other specialty chemical products worldwide. The company operates through five segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Adhesives, and Engineering Adhesives. It produces and supplies industrial adhesives products for applications in various markets, including appliances, filters, and insulating glass; food and beverage containers, flexible packaging, consumer goods, package integrity and re-enforcement, and durable and non-durable goods; corrugation, folding carton, tape and label, paper converting, envelopes, books, multi-wall bags, sacks, and tissue and towel; nonwoven and hygiene, such as disposable diapers, feminine care, and medical garments; windows, doors, and wood flooring; and insulating glass and textile. The company also provides specialty adhesives, including thermoplastic, thermoset, reactive, water-based, and solvent-based products; and products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. In addition, it produces and supplies high performance industrial adhesives to the transportation, electronics, medical, clean energy, aerospace and defense, appliance, and heavy machinery markets. The company sells its products directly through distributors and retailers. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 23:42
End of Day Share Price2020/01/17 00:00
Earnings2019/08/31
Annual Earnings2018/12/01


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.