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

• Market Cap: $3.42B
• Dividend Yield: 1.54%
• Average Volume (3M): 372.87K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.84
• Revenue Growth: -1.30%
• EPS Growth: -36.69%
• Country: US
• Employees: 7,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.26
• Shares Outstanding: 54,088,890
• 10 Day Avg. Volume: 402,235
• 30 Day Avg. Volume: 372,869
• PEG Ratio: -2.89
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 25.88
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 10.87
• 1Y Price Target: $70.00
• Price Target Upside: 10.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $62.00 ▼(-1.99% Downside)

H.B. Fuller Company's overall stock score is 62, driven primarily by financial performance challenges and a bearish technical outlook. Despite strong earnings call highlights, including EBITDA margin expansion and EPS growth, the stock's high valuation and weak market momentum weigh on its attractiveness. The company needs to address revenue growth and improve operational efficiency to enhance its financial performance.

Positive Factors

EBITDA Margin Expansion

The expansion of the EBITDA margin indicates improved operational efficiency and cost management, which can enhance long-term profitability and competitiveness.

Medical Adhesive Business Growth

Significant growth in the medical adhesive segment suggests strong demand and market potential, contributing to diversified revenue streams and future growth.

Strong Performance in EA Segment

Growth in the EA segment highlights successful market penetration and product demand in key industries, supporting sustainable revenue growth.

Negative Factors

Organic Revenue Decline

A decline in organic revenue indicates challenges in maintaining sales volume, which could impact overall growth and market position if not addressed.

Volume Decline in HHC Segment

A decline in the HHC segment's volume suggests potential market saturation or competitive pressures, which could hinder future revenue growth.

Solar Market Challenges

Challenges in the solar market due to regulatory changes can lead to uncertainty and reduced demand, impacting long-term growth in this segment.

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 generates revenue primarily through the sale of its adhesive and sealant products across various markets. The company's revenue model is based on both direct sales to end-users and distribution through third-party channels. Key revenue streams include industrial adhesives for manufacturers, construction adhesives for building projects, and specialty products for specific applications. Significant partnerships with major corporations in the automotive and electronics sectors contribute to its earnings, as does the company's emphasis on research and development to create high-performance products that meet evolving industry standards. Additionally, the global demand for sustainable and eco-friendly adhesive solutions has opened new market opportunities, further enhancing the company's revenue potential.

H.B. Fuller Company Financial Statement Overview

Summary

H.B. Fuller Company faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows moderate leverage and stable asset management, while cash flow metrics indicate potential liquidity concerns. The company needs to address revenue growth and improve operational efficiency to enhance financial performance.

Income Statement

H.B. Fuller Company shows a mixed performance in its income statement. The Gross Profit Margin is stable around 30%, indicating consistent cost management. However, the Net Profit Margin has declined to 3.28% in the TTM, reflecting reduced profitability. The Revenue Growth Rate is negative at -7.34% in the TTM, indicating a contraction in sales. EBIT and EBITDA margins have also decreased, suggesting operational challenges.

Balance Sheet

The company's balance sheet reflects moderate leverage with a Debt-to-Equity Ratio of 1.06 in the TTM, which is slightly improved from previous years. Return on Equity has decreased to 6.18%, indicating reduced efficiency in generating profits from equity. The Equity Ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a slight improvement in Free Cash Flow Growth at 3.17% in the TTM, but the Operating Cash Flow to Net Income Ratio has decreased to 0.36, indicating potential cash flow challenges. The Free Cash Flow to Net Income Ratio is 0.50, showing moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.57B	3.51B	3.75B	3.28B	2.79B
Gross Profit	1.06B	1.07B	1.01B	963.70M	845.32M	756.65M
EBITDA	487.02M	490.50M	528.60M	490.43M	438.12M	383.95M
Net Income	114.88M	130.26M	144.91M	180.31M	161.39M	123.72M
Balance Sheet
Total Assets	5.17B	4.93B	4.72B	4.46B	4.27B	4.04B
Cash, Cash Equivalents and Short-Term Investments	122.46M	169.35M	179.45M	79.91M	61.79M	100.53M
Total Debt	2.08B	2.07B	1.90B	1.81B	1.62B	1.77B
Total Liabilities	3.21B	3.10B	2.97B	2.85B	2.66B	2.65B
Stockholders Equity	1.96B	1.83B	1.76B	1.61B	1.61B	1.38B
Cash Flow
Free Cash Flow	121.37M	163.20M	259.26M	126.55M	117.23M	244.27M
Operating Cash Flow	242.41M	302.44M	378.40M	256.51M	213.32M	331.56M
Investing Cash Flow	-203.93M	-407.08M	-319.20M	-375.29M	-94.66M	-109.46M
Financing Cash Flow	-53.21M	112.09M	35.14M	160.32M	-154.07M	-239.21M

H.B. Fuller Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUL, the sentiment is Positive. The current price of 63.26 is above the 20-day moving average (MA) of 60.59, above the 50-day MA of 58.83, and above the 200-day MA of 57.76, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	71 Outperform	$2.56B	28.86	36.41%	1.87%	4.98%	30.84%
AVNT	63 Neutral	$3.02B	27.81	4.79%	3.48%	1.03%	-24.57%
FUL	62 Neutral	$3.42B	31.46	6.05%	1.54%	-1.30%	-36.69%
PRM	62 Neutral	$4.33B	69.55	7.39%	―	19.12%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$3.21B	38.53	17.49%	0.50%	11.86%	1.99%
KWR	58 Neutral	$2.59B	-292.80	-0.64%	1.37%	0.08%	-107.33%