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

• Market Cap: $3.26B
• Dividend Yield: 1.54%
• Average Volume (3M): 420.03K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.85
• 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: 54,311,783
• 10 Day Avg. Volume: 416,604
• 30 Day Avg. Volume: 420,032
• 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: 1.59
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 10.74
• 1Y Price Target: $74.50
• Price Target Upside: 28.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $68.00 ▲(17.42% Upside)

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

Margin Expansion / Profitability

Sustained margin expansion reflects structural improvements: pricing, raw-material tailwinds and cost programs increased gross and EBITDA margins. If maintained, higher margins support stronger cash generation and resilience versus cyclic revenue, enabling reinvestment and deleveraging over the next 2–6 months.

M&A Execution and EBITDA Contribution

Disciplined bolt-on M&A has meaningfully grown EBITDA contribution and shown integration success, improving organic profitability and accelerating targets. This track record supports a repeatable M&A cadence that can sustainably enhance margins and diversify revenue over the medium term.

Diversified End Markets and Geographic Upside

Broad market exposure and pockets of growth (APAC rebound, LNG, data centers, glass product strength) reduce dependency on any single end market. Geographic and product diversification underpins more stable revenue streams and supports medium-term growth even if core markets remain muted.

Negative Factors

Elevated Leverage and Interest Burden

Net debt/EBITDA above target constrains strategic flexibility and raises sensitivity to interest costs. Elevated leverage limits the pace of bolt-on M&A, share repurchases or unexpected investments, and keeps a portion of operating cash flow tied to financing costs over the next several quarters.

Top-line Pressure and Volume Weakness

Sustained soft organic growth and volume declines suggest demand headwinds and competitive pressure in key end markets. With management guiding flat to low-growth revenue, prolonged top-line weakness could cap long-term free cash flow growth and make margin gains the primary driver of earnings.

Working Capital & FCF Conversion Pressure

Higher working capital and near-term inventory/CapEx from transformation projects (Quantum Leap, SAP) weaken cash conversion. Persistent elevated working capital can delay deleveraging and limit capital available for growth or returns, pressuring balance sheet recovery over the medium term.

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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 57.91
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 57.91 is below the 20-day moving average (MA) of 61.51, below the 50-day MA of 60.00, and below the 200-day MA of 58.37, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 44.09 is Neutral, 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	$3.12B	34.31	36.41%	1.87%	4.98%	30.84%
PRM	64 Neutral	$3.87B	62.07	7.39%	―	19.12%	―
FUL	63 Neutral	$3.26B	21.99	7.93%	1.54%	-1.30%	-36.69%
AVNT	63 Neutral	$3.31B	29.20	4.79%	3.48%	1.03%	-24.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	61 Neutral	$2.72B	32.93	16.89%	0.50%	11.86%	1.99%
KWR	58 Neutral	$2.67B	-301.81	-0.64%	1.37%	0.08%	-107.33%