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

• Market Cap: $3.13B
• Dividend Yield: 1.6%
• Average Volume (3M): 389.65K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.89
• 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: 455,194
• 30 Day Avg. Volume: 389,649
• 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: 1.70
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 5.01
• Enterprise Value/Ebitda: 10.94
• 1Y Price Target: $73.33
• Price Target Upside: 21.63% 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 ▲(2.84% Upside)

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 (FUL) is a global leader in adhesives, sealants, and other specialty chemical solutions. Founded in 1887 and headquartered in Saint Paul, Minnesota, the company operates in various sectors including packaging, construction, automotive, electronics, and consumer products. H.B. Fuller offers a wide range of products designed to enhance performance and durability, focusing on innovation and sustainability to meet diverse customer needs across different industries.

How the Company Makes Money

H.B. Fuller generates revenue primarily through the sale of its adhesive and sealant products, which are used in numerous applications across multiple industries. The company operates through several key segments, including Construction Adhesives, Industrial Adhesives, and Consumer & Craft Adhesives. Its revenue model is based on direct sales to customers, long-term contracts, and partnerships with distributors and manufacturers. Significant revenue streams include high-performance adhesives for packaging, automotive assembly, and construction. Additionally, the company invests in research and development to create innovative solutions that cater to evolving market demands, which can lead to increased market share and profitability. Strategic partnerships with other companies in the supply chain also contribute to its earnings by allowing H.B. Fuller to offer comprehensive solutions to customers.

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: Negative
• Last Price: 60.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 60.29 is above the 20-day moving average (MA) of 58.71, above the 50-day MA of 59.37, and above the 200-day MA of 57.40, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, 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	73 Outperform	$2.67B	29.53	36.39%	1.90%	4.98%	30.84%
PRM	67 Neutral	$3.57B	57.32	7.39%	―	19.12%	―
AVNT	63 Neutral	$2.72B	24.09	4.79%	3.64%	1.03%	-24.57%
FUL	62 Neutral	$3.13B	27.80	6.05%	1.60%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$2.68B	32.20	17.49%	0.46%	11.86%	1.99%
KWR	58 Neutral	$2.39B	―	-0.64%	1.42%	0.08%	-107.33%

H.B. Fuller Company Corporate Events

H.B. Fuller Earnings Call: Mixed Results with Strategic Gains

In the recent earnings call, H.B. Fuller Company presented a mixed performance, reflecting both strengths and challenges faced during the period. The sentiment conveyed was one of cautious optimism, with notable achievements in financial metrics such as EBITDA margin expansion and EPS growth. However, the company also faced hurdles with organic revenue and volume declines, particularly in the HHC and solar markets. Strategic initiatives in the EA and medical adhesives sectors showed promising results, contributing positively to the overall outlook.