Why is H.B. Fuller Co. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.05%
2
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%
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 -17.98%, 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 -17.98% 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 sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is H.B. Fuller Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
H.B. Fuller Co.
12.35%
-0.59
33.76%
S&P 500
22.24%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
3.79%
EBIT Growth (5y)
9.26%
EBIT to Interest (avg)
3.02
Debt to EBITDA (avg)
3.89
Net Debt to Equity (avg)
1.08
Sales to Capital Employed (avg)
0.91
Tax Ratio
39.61%
Dividend Payout Ratio
33.79%
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
1.56
EV to EBIT
13.65
EV to EBITDA
9.23
EV to Capital Employed
1.29
EV to Sales
1.50
PEG Ratio
2.60
Dividend Yield
1.57%
ROCE (Latest)
9.43%
ROE (Latest)
9.54%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 6.53
RAW MATERIAL COST(Y)
Fallen by -7.7% (YoY
-8What is not working for the Company
PRE-TAX PROFIT(Q)
At USD 32.65 MM has Fallen at -50.96%
NET PROFIT(Q)
At USD 24.77 MM has Fallen at -47.24%
NET SALES(Q)
Lowest at USD 770.84 MM
Here's what is working for H.B. Fuller Co.
Dividend per share
Highest at USD 6.53 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -7.7% (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
Depreciation
Highest at USD 46.37 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for H.B. Fuller Co.
Pre-Tax Profit
At USD 32.65 MM has Fallen at -50.96%
over average net sales of the previous four periods of USD 66.57 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 24.77 MM has Fallen at -47.24%
over average net sales of the previous four periods of USD 46.95 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Sales
Lowest at USD 770.84 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Net Sales
At USD 770.84 MM has Fallen at -11.23%
over average net sales of the previous four periods of USD 868.4 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Non Operating Income
Highest at USD 0.26 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






