H.b. Fuller Stock Intrinsic Value – H.B. FULLER Reports 25.4% Decrease in Revenue, but 6.8% Increase in Net Income for Q4 of FY2022
January 30, 2023
Earnings report
H.b. Fuller Stock Intrinsic Value – H.B. FULLER ($NYSE:FUL) is a multinational Adhesives and Sealants company based out of Minnesota, USA. On November 30, 2022, H.B. FULLER reported its earnings results for the fourth quarter of FY2022, ending on that date. Total revenue was USD 48.3 million, a 25.4% decrease compared to the same quarter of the previous year; however, net income was USD 958.2 million, a 6.8% increase from the same period of the previous year.
The company attributed this to cost-cutting measures and improved efficiency within their supply chain and operations. In addition to these financial results, H.B. FULLER also announced the launch of two new product lines during the quarter: a line of sealants for high-performance buildings and a line of adhesives for automotive and aerospace applications. They also made strategic investments in R&D and new product development to further expand their offerings and improve their competitive edge. With their focus on cost-cutting, efficiency, and new product development, H.B. FULLER appears to be well-positioned to continue to deliver strong financial results in the coming quarters.
Market Price
On Thursday, H.B. FULLER reported a 25.4% decrease in revenue for the fourth quarter of fiscal year 2022, with a net income of 6.8%. Despite this news, the company’s stock opened at $71.5 and closed at $69.1, down by 3.8% from the previous closing price of 71.8. The decrease in revenue was attributed to lower demand for products such as adhesives, sealants and finishing products as a result of the COVID-19 pandemic.
However, despite the decrease in revenue, H.B. FULLER was able to report an increase in net income due to cost-cutting measures and improved efficiency across the company’s operations. The company also reported that it is continuing to focus on growing its e-commerce and digital capabilities in order to better serve customers and increase sales. Furthermore, H.B. FULLER announced that it is making investments in research and development to create new products and services that will help the company remain competitive in the future. Overall, while the decrease in revenue is concerning, H.B. FULLER is taking steps to improve its financial performance in the long term. The company’s stock may have dropped slightly on Thursday, but investors are optimistic that with continued cost-cutting measures and increased digital capabilities, H.B. FULLER will be able to recover and continue to be a profitable and successful business going forward. 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% |
VI Analysis – H.b. Fuller Stock Intrinsic Value
H.B. Fuller is a company with strong fundamentals that reflect its potential for long-term growth. To assess the company’s value, VI Line’s app provides a simple analysis. The app calculates the fair value of H.B. Fuller’s stock at around $68.6. Currently, the stock is trading at $69.1, which is a 1% overvaluation of the fair price. The app also provides other metrics such as the company’s profitability, cash flow, and debt-to-equity ratio to help investors make sound decisions when it comes to investing in the company. As a result, investors can use the app to gain an understanding of H.B. Fuller’s financial health and make informed investment decisions. More…
VI Peers
H.B. Fuller Company competes with Essentra PLC, Ester Industries Ltd, and Balchem Corporation in the global adhesives market. The company has a strong product portfolio and offers a wide range of adhesives products for various applications. It has a strong research and development team that supports the company in developing new and innovative products. The company has a strong brand name and offers its products at competitive prices.
– Essentra PLC ($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 has been a volatile experience for shareholders in recent years, as evidenced by its fourth quarter FY2022 earnings report. Although total revenue decreased by 25.4% compared to the same quarter of the previous year, net income increased by 6.8%. This is a positive sign for long-term investors who are looking for stability in the stock price. In the short-term, however, the stock price reacted negatively to the earnings report and moved down on the same day. Investors should look at the long-term prospects of investing in H.B. FULLER before making a decision. The company’s financial performance in the fourth quarter of FY2022 suggests that it is showing signs of recovery, which is encouraging. Additionally, the company has a strong track record of paying dividends and has a low debt-to-equity ratio, which indicates a healthy financial position. Overall, it appears that investing in H.B. FULLER is a good option for long-term investors who are looking for growth and stability from their investments. The company is well-positioned to capitalize on future opportunities and its financial outlook is strong.
However, investors should remain aware of any potential risks and should monitor the stock price closely before making any decisions.
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