H.B. Fuller Company (FUL) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: 1.54%
• Average Volume (3M): 430.03K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.90
• Revenue Growth: -1.30%
• EPS Growth: -36.69%
• Country: US
• Employees: 7,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.28
• Shares Outstanding: 54,475,433
• 10 Day Avg. Volume: 559,612
• 30 Day Avg. Volume: 430,030
• PEG Ratio: 1.21
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 26.25
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $72.25
• Price Target Upside: 38.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.62
• Revenue Forecast (FY): $3.55B

• Rating: 63 Neutral
• Price Target: $58.00 ▲(11.43% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is held back primarily by moderate financial performance (revenue softness, pressured cash conversion, and meaningful leverage), partially offset by constructive technical momentum (price above major moving averages with positive MACD). Valuation is somewhat demanding (P/E 23.53 with a modest 1.46% yield), while the earnings call supports a mid-level uplift due to margin/profit guidance despite muted top-line growth and near-term cash/working-capital headwinds.

Positive Factors

Diversified consumable revenue

H.B. Fuller’s core revenue comes from formulated, repeat‑use consumables across multiple end markets, creating durable recurring demand tied to customer production. Technical services and formulation customization increase switching costs and support price realization, underpinning steady revenue even in cyclical periods.

Structural margin improvement program

Management’s combined levers—disciplined pricing, raw‑material optimization and manufacturing/warehouse consolidation (Project Quantum Leap)—are delivering multi‑year, structural cost savings. These actions support sustainable EBITDA margin expansion toward the >20% target, improving operating leverage beyond one‑off cycles.

Disciplined bolt-on M&A

A repeatable, low‑multiple bolt‑on M&A approach has meaningfully added EBITDA and product breadth. Successful integration and synergy capture show the company can scale faster than organic growth alone, diversifying revenue and improving margins through accretive add‑ons over the medium term.

Negative Factors

Elevated leverage

Material leverage (net debt/EBITDA ~3.1x) and substantial interest expense constrain financial flexibility for reinvestment, dividends or faster M&A pacing. Sustained leverage increases sensitivity to cyclical revenue swings and limits buffer against unexpected demand or margin shocks over the medium term.

Top-line softness and volume pressure

Recent organic revenue and volume declines highlight persistent demand headwinds in key end markets (packaging, construction, some HHC segments). Structural top‑line softness curtails operating leverage benefits from margin programs and raises execution risk for growth targets absent sustained market recovery or successful new wins.

Weaker cash conversion & working capital drag

FCF conversion weakness and elevated working capital from transformation projects (Quantum Leap, SAP) absorb cash and delay deleveraging. Lower cash conversion reduces capacity to self‑fund capex, buybacks or accelerated debt paydown, and can prolong leverage above target even if EBITDA improves.

H.B. Fuller Company Business Overview & Revenue Model

Company Description

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. The company operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives such as, thermoplastic, thermoset, reactive, and water-based and solvent-based products for applications in various markets, including food and beverage containers, flexible packaging, consumer goods, package integrity and re-enforcement, and non-durable goods; corrugation, folding carton, tape and label, paper converting, envelopes, books, multi-wall bags, sacks, and tissue and towel; disposable diapers, feminine care, and medical garments; and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives such as reactive, light cure, two-part liquids, silicone, polyurethane, film, and fast cure products to the appliances and filters, windows, doors and wood flooring, and textile, transportation, electronics, medical, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides 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. 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.

How the Company Makes Money

H.B. Fuller primarily makes money by selling formulated adhesive, sealant, and related specialty chemical products to business customers, generating revenue largely from product sales (typically recognized when control of goods transfers to customers) across multiple end markets and geographies. Key revenue streams come from supplying high-volume, repeat-use consumables—such as hot-melt, water-based, solvent-based, reactive, and pressure-sensitive adhesives, as well as sealants and coatings—into customers’ ongoing production runs (e.g., packaging converting, hygiene product manufacturing, and industrial assembly), which can create recurring demand tied to customers’ throughput. The company also earns revenue through application expertise and service embedded in these sales (e.g., formulation customization, technical support, and process optimization), which can strengthen customer relationships and support pricing based on performance attributes rather than commodity inputs. Profitability is influenced by product mix (specialty vs. more standardized formulations), value-added custom formulations, scale in manufacturing and distribution, and the company’s ability to manage raw-material costs and pricing. Information on specific material partnerships or customer-level agreements is null.

H.B. Fuller Company Financial Statement Overview

Summary

Income statement shows resilient operating margins but TTM revenue contraction and weaker net margin (~3%) versus prior years. Balance sheet leverage is meaningful (debt-to-equity ~1.1; net debt/adj. EBITDA 3.1x noted), reducing flexibility. Cash flow remains positive, but free cash flow is down YoY and cash conversion is weaker than ideal.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined versus the prior year, signaling softer demand or pricing pressure. Profitability remains solid for a specialty chemicals profile with steady gross margin (~30%) and stable EBIT/EBITDA margins, but net margin is modest (~3%) and has trended down from stronger levels in 2022–2023. Overall: resilient operating profitability, but growth and bottom-line conversion have weakened recently.

Balance Sheet

Leverage is meaningful, with debt running a little above equity (debt-to-equity ~1.1 across recent periods), which reduces financial flexibility versus lower-levered peers. Equity has grown over time and returns on equity are positive but have moderated from earlier highs (down from ~11% in 2022 to ~6% in TTM). Overall: stable asset/equity base, but leverage and declining returns temper the picture.

Cash Flow

Cash generation is positive, with TTM operating cash flow comfortably positive and free cash flow also positive; however, free cash flow is down year over year and free cash flow is only about half of net income, indicating weaker cash conversion than ideal. Operating cash flow relative to revenue is also not especially strong, suggesting working-capital or reinvestment needs are absorbing cash. Overall: consistently positive cash flow, but conversion and recent momentum are soft.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	3.47B	3.57B	3.51B	3.75B	3.28B
Gross Profit	1.10B	1.07B	1.02B	963.55M	845.13M
EBITDA	527.08M	490.50M	528.60M	490.43M	438.12M
Net Income	151.97M	130.26M	144.91M	180.31M	161.39M
Balance Sheet
Total Assets	5.18B	4.93B	4.72B	4.46B	4.27B
Cash, Cash Equivalents and Short-Term Investments	107.21M	169.35M	179.45M	79.91M	61.79M
Total Debt	2.02B	2.07B	1.90B	1.80B	1.65B
Total Liabilities	3.18B	3.10B	2.97B	2.85B	2.68B
Stockholders Equity	2.00B	1.83B	1.76B	1.61B	1.60B
Cash Flow
Free Cash Flow	121.22M	163.20M	259.26M	126.55M	117.23M
Operating Cash Flow	263.49M	302.44M	378.40M	256.51M	213.32M
Investing Cash Flow	-232.25M	-407.08M	-319.20M	-375.29M	-94.66M
Financing Cash Flow	-107.90M	112.09M	35.14M	160.32M	-154.07M

H.B. Fuller Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUL, the sentiment is Negative. The current price of 52.05 is below the 20-day moving average (MA) of 60.95, below the 50-day MA of 62.27, and below the 200-day MA of 59.53, indicating a bearish trend. The MACD of -2.73 indicates Positive momentum. The RSI at 19.28 is Positive, neither overbought nor oversold. The STOCH value of 5.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUL.

H.B. Fuller Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDFC	78 Outperform	$2.96B	38.21	34.72%	1.87%	4.98%	30.84%
FUL	63 Neutral	$2.84B	20.94	7.98%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	61 Neutral	$2.88B	53.35	16.73%	0.50%	11.86%	1.99%
AVNT	59 Neutral	$3.02B	34.90	3.48%	3.48%	1.03%	-24.57%
KWR	54 Neutral	$2.09B	-964.31	-0.18%	1.37%	0.08%	-107.33%
PRM	50 Neutral	$3.27B	-7.30	-17.79%	―	19.12%	―