H.B. Fuller Co. (FUL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

WD-40 Co.

UFP Technologies, Inc.

Axalta Coating Systems Ltd.

RPM International, Inc.

H.B. Fuller Co.

PPG Industries, Inc.

The Sherwin-Williams Co.

Montauk Renewables, Inc.

CSW Industrials, Inc.

Olin Corp.

Chase Corp.

Why is H.B. Fuller Co. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.05%

Flat results in May 25

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%

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 -17.98%, its profits have risen by 14.5% ; the PEG ratio of the company is 1.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.98% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

7.21%

-0.59

33.76%

S&P 500

13.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

0.92

Tax Ratio

39.61%

Dividend Payout Ratio

33.73%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.05%

ROE (avg)

10.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 years

MOJO 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 periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 30.87%

in the last five years

MOJO 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 years

MOJO 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 periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio