Why is H.B. Fuller Co. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.05%
2
Positive results in May 25
- DIVIDEND PER SHARE(HY) Highest at USD 6.11
- DIVIDEND PAYOUT RATIO(Y) Highest at 30.87%
- RAW MATERIAL COST(Y) Fallen by -3.35% (YoY)
3
With ROCE of 9.06%, it has a very expensive valuation with a 1.33 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.68%, its profits have risen by 14.5% ; the PEG ratio of the company is 1.2
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.68% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to H.B. Fuller Co. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is H.B. Fuller Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
H.B. Fuller Co.
-24.31%
-0.67
33.53%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
4.84%
EBIT Growth (5y)
9.87%
EBIT to Interest (avg)
3.02
Debt to EBITDA (avg)
3.89
Net Debt to Equity (avg)
1.08
Sales to Capital Employed (avg)
0.96
Tax Ratio
39.61%
Dividend Payout Ratio
37.93%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
9.05%
ROE (avg)
10.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.71
EV to EBIT
14.67
EV to EBITDA
9.79
EV to Capital Employed
1.33
EV to Sales
1.44
PEG Ratio
1.21
Dividend Yield
1.60%
ROCE (Latest)
9.06%
ROE (Latest)
10.50%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 6.11
DIVIDEND PAYOUT RATIO(Y)
Highest at 30.87%
RAW MATERIAL COST(Y)
Fallen by -3.35% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.11 times
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 231.23 MM
NET PROFIT(HY)
At USD 58.65 MM has Grown at -31.72%
ROCE(HY)
Lowest at 5.62%
DEBT-EQUITY RATIO
(HY)
Highest at 107.52 %
Here's what is working for H.B. Fuller Co.
Dividend per share
Highest at USD 6.11 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debtors Turnover Ratio
Highest at 6.11 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 30.87%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -3.35% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for H.B. Fuller Co.
Net Profit
At USD 58.65 MM has Grown at -31.72%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD 231.23 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Highest at 107.52 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






