H.B. Fuller Company
H.B. Fuller Company Fundamental Analysis
H.B. Fuller Company (FUL) shows weak financial fundamentals with a PE ratio of 23.60, profit margin of 4.37%, and ROE of 7.98%. The company generates $3.5B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FUL's fundamental strength across five key dimensions:
Efficiency Score
WeakFUL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFUL trades at attractive valuation levels.
Growth Score
WeakFUL faces weak or negative growth trends.
Financial Health Score
ModerateFUL shows balanced financial health with some risks.
Profitability Score
WeakFUL struggles to sustain strong margins.
Key Financial Metrics
Is FUL Expensive or Cheap?
P/E Ratio
FUL trades at 23.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FUL's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values H.B. Fuller Company at 1.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.45 times EBITDA. This is generally considered low.
How Well Does FUL Make Money?
Net Profit Margin
For every $100 in sales, H.B. Fuller Company keeps $4.37 as profit after all expenses.
Operating Margin
Core operations generate 10.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.98 in profit for every $100 of shareholder equity.
ROA
H.B. Fuller Company generates $2.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H.B. Fuller Company generates limited operating cash flow of $262.39M, signaling weaker underlying cash strength.
Free Cash Flow
H.B. Fuller Company produces free cash flow of $120.71M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.22 in free cash annually.
FCF Yield
FUL converts 3.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FUL Stacks Against Its Sector Peers
| Metric | FUL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.60 | 27.01 | Better (Cheaper) |
| ROE | 7.98% | 949.00% | Weak |
| Net Margin | 4.37% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.01 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.70 | 4.42 | Neutral |
| ROA | 2.93% | -6411.00% (disorted) | Weak |
FUL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H.B. Fuller Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.19%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-7.70%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
4.15%
Industry Style: Cyclical, Commodity, Value
Growing