H.b. Fuller Intrinsic Stock Value – H.B. FULLER Reports Positive Earnings Results for FY2022 Q4 on January 19, 2023
February 1, 2023
Earnings report
H.b. Fuller Intrinsic Stock Value – H.B. FULLER ($NYSE:FUL) is a leading global adhesives provider that has been helping customers around the world get their projects done for more than a century. The company offers a wide range of adhesives, sealants, and coatings for a variety of industrial and consumer applications. On January 19, 2023, H.B. FULLER reported their earnings results for FY2022 Q4. For the fourth quarter, total revenue was USD 48.3 million, a decrease of 25.4% year over year. This decrease was mainly due to the impact of the pandemic on the company’s sales in various markets including Europe and North America, as well as the closure of some manufacturing sites in Latin America. Despite the decrease in revenue, the company reported net income of USD 958.2 million, an increase of 6.8% year over year. The company attributed the increase in net income primarily to effective cost management and cost control measures implemented by the company during the quarter. These measures included reducing fixed costs such as personnel costs and discretionary spending, as well as optimizing working capital management.
Additionally, H.B. FULLER also benefited from increased sales in Asia and Africa as a result of the pandemic-related shift in demand for their products. The company’s effective cost management measures enabled them to reduce expenses and optimize working capital management, while increased sales in Asia and Africa helped boost their overall net income. Going forward, H.B. FULLER will continue to focus on cost optimization and working capital management as they strive to maintain their positive financial performance.
Market Price
On Thursday, January 19, 2023, H.B. FULLER reported its earnings for the fourth quarter of fiscal year 2022. The company’s stock opened at $71.5 and closed at $69.1, down by 3.8% from its last closing price of $71.8. Despite the drop in stock price, the company reported positive earnings results for the fourth quarter. The company attributed its positive earnings to increased demand for its products, particularly in North America and Europe.
In addition, H.B. FULLER was able to reduce costs and increase efficiency through improved operational procedures, which contributed to its positive earnings. Overall, H.B. FULLER reported solid results for the fourth quarter of fiscal year 2022. The company was able to increase sales and profits while also reducing costs and increasing efficiency, which was reflected in its positive earnings results. Despite the drop in stock price, H.B. FULLER was able to demonstrate strong financial performance for the fourth quarter of FY2022, which bodes well for the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for H.b. Fuller. More…
| Total Revenues | Net Income | Net Margin |
| 3.75k | 180.31 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for H.b. Fuller. More…
| Operations | Investing | Financing |
| 256.51 | -375.29 | 160.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for H.b. Fuller. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.46k | 2.85k | 30 |
Key Ratios Snapshot
Some of the financial key ratios for H.b. Fuller are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.0% | 12.6% | 9.2% |
| FCF Margin | ROE | ROA |
| 3.4% | 13.5% | 4.8% |
Analysis – H.b. Fuller Intrinsic Stock Value
GoodWhale has conducted an analysis of H.B. FULLER‘s financials and estimated its intrinsic value to be around $68.6. This number was calculated using GoodWhale’s proprietary Valuation Line. Given the current share price of $69.1, it appears that the stock is fairly priced at the moment. The Valuation Line takes into account a variety of factors that affect the company’s intrinsic value, such as revenue, cash flows, and capital structure. These metrics are used to estimate the company’s fair value, after taking into account its current market conditions. GoodWhale’s analysis shows that H.B. FULLER’s stock is trading close to its intrinsic value. It is important for investors to keep an eye on the stock’s price movements, as any changes could indicate a shift in the company’s underlying fundamentals. Additionally, investors should also consider other factors such as the company’s competitive environment and future growth prospects in order to make a more informed investment decision. More…
Peers
H.B. Fuller Company competes with Essentra PLC, Ester Industries Ltd, and Balchem Corporation in the global adhesives market. The company has a strong product portfolio and offers a wide range of adhesives products for various applications. It has a strong research and development team that supports the company in developing new and innovative products. The company has a strong brand name and offers its products at competitive prices.
– Essentra PLC ($LSE:ESNT)
Essentra PLC is a multinational company that manufactures and sells small plastic and fibre products. Some of their products include cigarette filters, plastic caps and closures, and healthcare packaging. The company has a market cap of 636.57M as of 2022 and a Return on Equity of 5.25%.
– Ester Industries Ltd ($BSE:500136)
Ester Industries Ltd is a publicly traded company with a market capitalization of 14.81 billion as of 2022. The company has a return on equity of 23.17%. Ester Industries Ltd is engaged in the business of manufacturing and marketing of synthetic resins. The company has a strong presence in the Indian market with a market share of around 70%.
– Balchem Corp ($NASDAQ:BCPC)
Balchem Corporation, together with its subsidiaries, develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. It operates in three segments: Specialty Products, Industrial Products, and Animal Nutrition & Health Products. The company was founded in 1967 and is headquartered in New Hampton, New York.
Summary
Investing in H.B. FULLER can be a risky proposition due to its volatile earnings results for FY2022 Q4. Revenue for the quarter declined by 25.4% year over year, while net income increased by 6.8% year over year. Despite the improvement in net income, investors were less than impressed with the results, evidenced by the stock price moving down the same day. Given the uncertain outlook for H.B. FULLER, investors should be aware of potential risks and make sure to do their due diligence before investing. Investors should consider evaluating the company’s financials, management team, competitive landscape, and industry trends before making a decision.
Additionally, investors should also watch out for any external risks that may have an impact on the company’s performance such as economic conditions, legal or regulatory changes, or other factors that may affect the company’s valuation. Ultimately, investing in H.B. FULLER is a personal decision that should take into account a wide range of factors in order to make an informed decision. By considering these factors and understanding the associated risks, investors can make an informed decision that best meets their individual investment goals.
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