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H.B. Fuller Company (FUL)
:FUL

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

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FU

H.B. Fuller Company

(NYSE:FUL)

Rating:75Outperform
Price Target:
$68.00
▲(11.92%Upside)
The most significant factors influencing the score are the stable financial performance and bullish technical indicators, although the stock's valuation is somewhat high. The earnings call highlights strong profitability and cost management but also flags revenue growth challenges. Overall, the stock demonstrates strength in operational efficiency and market momentum, but faces valuation concerns and market-driven revenue pressures.
Positive Factors
Cost Optimization
Cost optimization efforts, acquisition contributions, and strong demand in Construction Adhesives provide a silver lining for the FUL shares.
Mergers and Acquisitions
M&A optionality has increased for FUL, with a substantial pipeline of accretive bolt-on acquisitions expected to boost the growth profile of the company.
Negative Factors
Earnings and Guidance
Earnings below Street expectations and guidance adjusted lower.
Financial Performance
3FQ24 earnings miss and the associated FY24 guidance adjustments are a net negative for the shares.
Pricing and Cost Dynamics
The reality of a more challenging operating backdrop and unfavorable price:cost dynamics are powerful offsets.

H.B. Fuller Company (FUL) vs. SPDR S&P 500 ETF (SPY)

H.B. Fuller Company Business Overview & Revenue Model

Company DescriptionH.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 MoneyH.B. Fuller Company generates revenue primarily through the sale of its adhesive products and solutions across multiple industries. Its key revenue streams include industrial adhesives used in packaging, converting, nonwoven and hygiene, general assembly, and durable assembly applications. The company also earns income from construction adhesives, sealants, and specialty materials utilized in building projects. Significant partnerships with leading manufacturers and a global distribution network enhance its market reach and contribute to its earnings. Additionally, H.B. Fuller invests in research and development to innovate and create tailored solutions for specific customer requirements, reinforcing its competitive position in the market.

H.B. Fuller Company Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q2-2025)
|
% Change Since: 8.58%|
Next Earnings Date:Sep 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong financial metrics in profitability and cost management, highlighted by EBITDA growth and margin expansion. However, there are notable challenges in revenue growth, particularly in the solar and residential construction markets, and regional weaknesses in EIMEA and Asia Pacific. Positive steps in sustainability and innovation offer optimism, but the overall sentiment is balanced between achievements and challenges.
Q2-2025 Updates
Positive Updates
EBITDA Margin Expansion
EBITDA grew 5% year on year to $166 million, with a margin expansion of 130 basis points to 18.4%.
Engineering Adhesives Segment Performance
EBITDA in Engineering Adhesives increased 24%, with a margin increase of 310 basis points year on year to 22.9%.
Positive Organic Revenue Growth
Organic revenue increased by 0.4%, driven by pricing growth of 0.7% despite a slight volume decrease.
Cash Flow Improvement
Operating cash flow for the second quarter increased by $29 million (36%) year on year.
Recognition for Sustainability
H.B. Fuller was named one of the world's greenest companies in 2025 by Newsweek.
Customer Innovation Awards
Awards were given to companies like CMC Packaging Automation and Chengdu Xinyu for innovations using adhesive technologies.
Negative Updates
Revenue Decline
Overall revenue decreased by 2.1% compared to the same period last year.
Weakness in Solar Market
Continued weakness in the solar market affected the Engineering Adhesives segment's revenue.
Challenges in Residential Construction
Building Adhesive Solutions sales decreased by 0.9% year on year due to weakness in glass and wood, related to residential construction.
EIMEA Market Performance
Organic revenue in EIMEA was down 2% year over year due to weak demand in construction-related end markets.
Electronics Market Slowdown in China
A temporary pause was noted in the electronics market in Asia Pacific, leading to a slowdown in exports.
Company Guidance
During H.B. Fuller's second quarter 2025 investor call, the company provided updated guidance reflecting strong financial performance. The full-year outlook for adjusted EBITDA was raised to a range of $615 million to $630 million, representing an increase of 4% to 6% year on year. The adjusted EPS guidance was also increased to a range of $4.10 to $4.30, indicating growth of between 7-12% year on year. Organic revenue is expected to be flat to up 2%, with net revenue expected to decline by 2% to 3% year on year due to foreign exchange impacts. The company reported a second-quarter EBITDA margin expansion of 130 basis points year on year to 18.4%, driven by a 5% increase in EBITDA to $166 million. The margin expansion was supported by strategic pricing actions, cost savings, and portfolio shifts towards higher-margin markets. H.B. Fuller also noted ongoing challenges and uncertainties in the operating environment, including foreign exchange volatility and constrained demand, but expressed confidence in continuing margin expansion and profit growth in the second half of the year.

H.B. Fuller Company Financial Statement Overview

Summary
H.B. Fuller Company demonstrates stable profitability and a balanced capital structure, but it faces challenges with declining revenue and free cash flow. While operating efficiency appears solid, the company should focus on improving revenue growth and managing debt levels to ensure long-term financial health.
Income Statement
72
Positive
The company's income statement shows moderate profitability with a gross profit margin of approximately 29.6% TTM and a net profit margin of about 3.2% TTM. EBIT and EBITDA margins are at 9.3% and 13.2% TTM, respectively, indicating reasonable operating efficiency. Revenue has been relatively stable with a slight decline in recent periods, which could pose a risk if the trend continues.
Balance Sheet
68
Positive
The balance sheet reflects a stable equity base with a debt-to-equity ratio of approximately 1.23 TTM, indicating manageable leverage. Return on equity (ROE) is around 6.3% TTM, which is modest. The equity ratio stands at 35.8% TTM, suggesting a balanced capital structure. However, the high total debt level could be a concern if interest rates rise.
Cash Flow
65
Positive
Cash flow analysis shows a declining free cash flow, with a negative free cash flow growth rate, indicating potential challenges in generating cash. Operating cash flow to net income ratio is approximately 1.8 TTM, which is strong, but free cash flow to net income ratio has decreased to around 0.65 TTM, suggesting decreasing cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.53B3.57B3.51B3.75B3.28B2.79B
Gross Profit1.05B1.06B1.01B963.70M845.32M756.65M
EBITDA476.79M490.50M528.60M490.43M438.12M383.95M
Net Income103.08M130.26M144.91M180.31M161.39M123.72M
Balance Sheet
Total Assets5.13B4.93B4.72B4.46B4.27B4.04B
Cash, Cash Equivalents and Short-Term Investments96.78M169.35M179.45M79.91M61.79M100.53M
Total Debt2.11B2.07B1.90B1.77B1.62B1.77B
Total Liabilities3.26B3.10B2.97B2.85B2.66B2.65B
Stockholders Equity1.87B1.83B1.76B1.61B1.61B1.38B
Cash Flow
Free Cash Flow117.64M163.20M259.26M126.55M117.23M244.27M
Operating Cash Flow231.23M302.44M378.40M256.51M213.32M331.56M
Investing Cash Flow-215.25M-407.08M-319.20M-375.29M-94.66M-109.46M
Financing Cash Flow-36.27M112.09M35.14M160.32M-154.07M-239.21M

H.B. Fuller Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.76
Price Trends
50DMA
56.38
Positive
100DMA
55.75
Positive
200DMA
63.68
Negative
Market Momentum
MACD
1.82
Negative
RSI
63.66
Neutral
STOCH
81.51
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 60.76 is above the 20-day moving average (MA) of 58.15, above the 50-day MA of 56.38, and below the 200-day MA of 63.68, indicating a neutral trend. The MACD of 1.82 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.51 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 Risk Analysis

H.B. Fuller Company disclosed 21 risk factors in its most recent earnings report. H.B. Fuller Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

H.B. Fuller Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FUFUL
75
Outperform
$3.28B33.005.62%1.55%-0.09%-37.60%
SXSXT
73
Outperform
$4.55B35.5011.87%1.52%6.30%41.01%
SXSXT
73
Outperform
$4.55B35.5011.87%1.52%6.30%41.01%
71
Outperform
$3.12B36.6737.14%1.61%8.71%24.92%
71
Outperform
$3.12B36.6737.14%1.61%8.71%24.92%
71
Outperform
$3.03B30.654.32%3.14%3.58%-5.17%
71
Outperform
$3.03B30.654.32%3.14%3.58%-5.17%
OLOLN
64
Neutral
$2.43B41.522.94%3.80%-1.13%-81.74%
OLOLN
64
Neutral
$2.43B41.522.94%3.80%-1.13%-81.74%
SSSSL
57
Neutral
$3.15B-28.05%2.00%-4.31%-1421.83%
SSSSL
57
Neutral
$3.15B-28.05%2.00%-4.31%-1421.83%
44
Neutral
C$992.05M-6.68-13.59%2.53%17.48%-32.48%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FUL
H.B. Fuller Company
62.85
-14.71
-18.97%
OLN
Olin
22.22
-23.00
-50.86%
OLN
Olin
22.22
-23.00
-50.86%
AVNT
Avient
33.76
-7.10
-17.38%
AVNT
Avient
33.76
-7.10
-17.38%
SSL
Sasol
5.15
-2.47
-32.41%
SSL
Sasol
5.15
-2.47
-32.41%
SXT
Sensient Technologies
108.38
34.39
46.48%
SXT
Sensient Technologies
108.38
34.39
46.48%
WDFC
WD-40 Company
229.82
13.39
6.19%

H.B. Fuller Company Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
H.B. Fuller Announces Leadership Transition and Strategic Focus
Positive
Oct 21, 2024

H.B. Fuller Company has announced the retirement of Lee R. Mitau as Chair of the Board, effective January 2025. He is succeeded by Teresa J. Rasmussen, a seasoned leader known for her global perspective and expertise in financial services. The transition is expected to support H.B. Fuller’s growth strategy as it aims to expand in high-growth markets and improve its EBITDA margin. Mitau’s departure follows years of significant contributions to the company’s development as the largest pureplay adhesives company globally.

Executive/Board Changes
H.B. Fuller Announces Retirement of Key Executive Traci Jensen
Neutral
Oct 7, 2024

Traci L. Jensen, a key executive at H.B. Fuller Company, is set to retire on November 30, 2024, after a significant 15-year tenure that included roles such as Executive Vice President and Chief Administrative Officer, and Vice President of Global Business Process Improvement. Recognized for her pivotal contributions to the company’s growth, Jensen’s departure will lead to an upcoming announcement of her successor. Her leadership and service have been highly valued by the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025