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.

Snowflake

Fundamentals

Good value average dividend payer.


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


Market Performance


7 Day Return

2.4%

FUL

2.0%

US Chemicals

1.0%

US Market


1 Year Return

2.3%

FUL

-5.9%

US Chemicals

6.7%

US Market

Return vs Industry: FUL exceeded the US Chemicals industry which returned -5.9% over the past year.

Return vs Market: FUL underperformed the US Market which returned 6.7% over the past year.


Share holder returns

FULIndustryMarket
7 Day2.4%2.0%1.0%
30 Day-4.2%-2.8%-1.8%
90 Day-1.8%-2.6%-1.8%
1 Year3.6%2.3%8.1%-5.9%9.1%6.7%
3 Year11.8%7.9%43.4%17.3%46.1%36.6%
5 Year24.6%17.5%46.1%14.8%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FUL ($47.27) is trading below our estimate of fair value ($54.53)

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


Price Based on Earnings

PE vs Industry: FUL is good value based on its PE Ratio (17.2x) compared to the Chemicals industry average (19.4x).

PE vs Market: FUL is good value based on its PE Ratio (17.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FUL is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: FUL is overvalued based on its PB Ratio (2x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is H.B. Fuller expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FUL's forecast earnings growth (19.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FUL's earnings (19.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: FUL's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FUL's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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


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 -2%.


Return on Equity

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


Return on Assets

ROA vs Industry: FUL's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: FUL's Return on Capital Employed has declined over the past 3 years.


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) exceeds 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?

1.43%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase H.B. Fuller before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years1.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: FUL's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: FUL's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (16.6% 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?

3.8yrs

Average management tenure


CEO

Jim Owens (54yo)

8.9yrs

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: FUL's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

64yo

Average Age

Experienced Board: FUL's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$157,09419 Feb 19
Robert Martsching
EntityIndividual
Shares3,215
Max PriceUS$48.86

Ownership Breakdown


Management Team

  • Barbara Doyle

    Vice President of Investor Relations

    • Tenure: 1.2yrs
  • Steve Kenny (57yo)

    Senior Vice President of Emerging Markets

    • Tenure: 10yrs
    • Compensation: US$1.09m
  • Tim Keenan (61yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 13.8yrs
    • Compensation: US$598.25k
  • John Corkrean (53yo)

    Executive VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$1.21m
  • Jim Owens (54yo)

    President

    • Tenure: 8.9yrs
    • Compensation: US$4.62m
  • Traci Jensen (52yo)

    Senior Vice President of Global Construction Products

    • Tenure: 6.8yrs
    • Compensation: US$1.16m
  • Patrick Kivits (51yo)

    Senior Vice President of Europe

    • Tenure: 4.1yrs
    • Compensation: US$1.06m
  • Zhiwei Cai (56yo)

    Senior Vice President of Global Engineering - Adhesive segment

    • Tenure: 1.8yrs
    • Compensation: US$1.49m
  • Paula Cooney (50yo)

    Vice President of Human Resources

    • Tenure: 3.5yrs
  • Abe Rezai (67yo)

    VP and Chief Technology & Innovation Officer

    • Tenure: 3yrs

Board Members

  • John van Roden (69yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$212.89k
  • Dan Florness (56yo)

    Independent Director

    • Tenure: 1.3yrs
  • Lee Mitau (70yo)

    Independent Chairman & Presiding Director

    • Tenure: 12.8yrs
    • Compensation: US$297.99k
  • Dante Parrini (54yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$208.45k
  • Mike Losh (73yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$200.00k
  • Bill Van Sant (80yo)

    Vice Chairman

    • Tenure: 8.8yrs
    • Compensation: US$257.94k
  • Tom Handley (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$208.51k
  • Tessa Hilado (54yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$210.38k
  • Jim Owens (54yo)

    President

    • Tenure: 8.9yrs
    • Compensation: US$4.62m
  • Ruth Kimmelshue

    Director

    • Tenure: 2yrs

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$2.410b
  • 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:35
End of Day Share Price2019/10/11 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.

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