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H.B. Fuller Company
(NYSE:FUL)
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Rating:58Neutral
Price Target:
$51.00
▼(-10.54% Downside)
Action:Reiterated
Date:09/29/26
The score is primarily driven by improving margins but weak free cash flow conversion and meaningful leverage, which limit financial flexibility. Technicals further weigh on the rating as the stock is in a downtrend with negative momentum. These risks are partly offset by a reasonable valuation (P/E ~13.6, ~1.94% yield) and a generally constructive earnings call focused on margin/cash flow initiatives and maintained guidance.
Positive Factors
Sustainable margin expansion through pricing and restructuring
Pricing discipline and restructuring savings are improving profitability despite inflation and lower volumes. This indicates stronger earnings quality and suggests the company can protect margins through customer value, specialty formulations, and ongoing operational efficiency over the next several quarters.
Negative Factors
Weak free-cash-flow conversion limits financial flexibility
Reported earnings are not translating efficiently into cash, which can constrain debt reduction, investment, and shareholder returns. Persistently weak conversion would leave the company more dependent on operating improvements and asset actions to fund strategic priorities and absorb market volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustainable margin expansion through pricing and restructuring
Pricing discipline and restructuring savings are improving profitability despite inflation and lower volumes. This indicates stronger earnings quality and suggests the company can protect margins through customer value, specialty formulations, and ongoing operational efficiency over the next several quarters.
Read all positive factors
H.B. Fuller Company (FUL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.70B
Dividend Yield1.91%
Average Volume (3M)828.88K
Price to Earnings (P/E)13.8
Beta (1Y)0.93
Revenue Growth1.48%
EPS Growth72.33%
CountryUS
Employees7,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.64
Shares Outstanding53,829,120
10 Day Avg. Volume1,302,327
30 Day Avg. Volume828,876
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)1.59
Price to Sales (P/S)0.92
P/FCF Ratio26.25
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit4.33
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$64.00Price Target Upside12.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.89
Revenue Forecast (FY)$3.61B
H.B. Fuller Company Business Overview & Revenue Model
Company Description
H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene,...
How the Company Makes Money
H.B. Fuller primarily makes money by selling formulated adhesive and sealant products to business customers (B2B) across multiple end markets, generating revenue from the volume of product shipped and the pricing of those products. Its core revenu...
H.B. Fuller Company Earnings Call Summary
Earnings Call Date:Sep 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with strong third-quarter revenue, EBITDA, margin, EPS, cash flow, segment performance, Quantum Leap execution, and progress toward closing the AMS acquisition. The main challenges were lower volumes, volatile demand, elevated raw material costs, supply chain disruption, weakness in electronics, construction, China, and portions of HHC and BAS. Management remained confident in continued growth, margin expansion, savings realization, cash flow improvement, and deleveraging.Positive Updates
Strong Third-Quarter Financial Performance
Revenue increased 5.2% year-over-year, while organic revenue increased 4.4%, driven by 7.4% pricing that partially offset lower volume. Adjusted EBITDA rose 9% to $187 million, adjusted EBITDA margin expanded 80 basis points to 19.9%, and adjusted EPS increased 21% to $1.52.
Negative Updates
Lower Volume Offset Organic Growth
Third-quarter organic growth of 4.4% was driven by 7.4% pricing that was partially offset by lower volume year-over-year. Fiscal 2026 guidance continues to call for volume to decline low single digits.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Revenue increased 5.2% year-over-year, while organic revenue increased 4.4%, driven by 7.4% pricing that partially offset lower volume. Adjusted EBITDA rose 9% to $187 million, adjusted EBITDA margin expanded 80 basis points to 19.9%, and adjusted EPS increased 21% to $1.52.
Read all positive updates
Company Guidance
For fiscal 2026, excluding the impact of the proposed acquisition of Advanced Medical Solutions, net revenue is still expected to be up mid-single digits, organic revenue is still expected to be up low single digits versus fiscal 2025, pricing up mid-single digits and volume down low single digits; adjusted EBITDA is now expected to be in the range of $655 million to $670 million, adjusted EPS in the range of $4.70 to $4.85, and cash flow from operations, excluding AMS-related items, in the range of $300 million to $325 million. Quantum Leap is expected to deliver approximately $75 million of annualized conversion cost savings by the end of 2030, with approximately $25 million realized through the end of 2026 and an additional $20 million to $25 million of incremental savings in 2027; capital investment is expected to be $150 million over the life of the program, roughly $50 million in 2026 and less than $25 million in 2027, with approximately $50 million of total onetime cash costs, about 1/3 already realized. The footprint is expected to decline from 82 manufacturing facilities at the end of 2024 to approximately 62 by the end of 2026, below 60 by the end of 2027 excluding AMS, and toward 55, while AMS is expected to be growing about 8% a year on average and leverage is expected to return to the targeted range of 2.5 to 3x within 2 years of closing.H.B. Fuller Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.55B | 3.47B | 3.57B | 3.51B | 3.75B | 3.28B |
| Gross Profit | 1.17B | 1.10B | 1.07B | 1.02B | 963.55M | 845.13M |
| EBITDA | 540.56M | 527.08M | 490.50M | 528.60M | 490.43M | 438.12M |
| Net Income | 197.76M | 151.97M | 130.26M | 144.91M | 180.31M | 161.39M |
Balance Sheet | ||||||
| Total Assets | 5.43B | 5.18B | 4.93B | 4.72B | 4.46B | 4.27B |
| Cash, Cash Equivalents and Short-Term Investments | 97.23M | 107.21M | 169.35M | 179.45M | 79.91M | 61.79M |
| Total Debt | 2.05B | 2.02B | 2.07B | 1.90B | 1.80B | 1.65B |
| Total Liabilities | 3.26B | 3.18B | 3.10B | 2.97B | 2.85B | 2.68B |
| Stockholders Equity | 2.17B | 2.00B | 1.83B | 1.76B | 1.61B | 1.60B |
Cash Flow | ||||||
| Free Cash Flow | 100.03M | 121.22M | 163.20M | 259.26M | 126.55M | 117.23M |
| Operating Cash Flow | 289.37M | 263.49M | 302.44M | 378.40M | 256.51M | 213.32M |
| Investing Cash Flow | -202.04M | -232.25M | -407.08M | -319.20M | -375.29M | -94.66M |
| Financing Cash Flow | -125.61M | -107.90M | 112.09M | 35.14M | 160.32M | -154.07M |
H.B. Fuller Company Technical Analysis
Negative
57.01
Price Trends
55.12
Negative
57.33
Negative
59.02
Negative
Market Momentum
-1.55
Negative
37.84
Neutral
47.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUL, the sentiment is Negative. The current price of 57.01 is above the 20-day moving average (MA) of 50.72, above the 50-day MA of 55.12, and below the 200-day MA of 59.02, indicating a bearish trend. The MACD of -1.55 indicates Negative momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUL.
H.B. Fuller Company Risk Analysis
H.B. Fuller Company disclosed 21 risk factors in its most recent earnings report. H.B. Fuller Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
H.B. Fuller Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.89B | 19.75 | 14.59% | ― | -0.92% | -20.25% | |
70 Outperform | $7.42B | 16.76 | 7.42% | 5.18% | -4.30% | -46.24% | |
69 Neutral | $12.66B | 19.11 | 20.93% | 2.18% | 6.66% | -3.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $23.37B | 14.98 | 19.47% | 2.73% | 1.47% | 23.56% | |
58 Neutral | $2.70B | 13.79 | 9.51% | 1.91% | 1.48% | 72.33% | |
56 Neutral | $3.18B | 60.98 | 2.77% | 2.40% | -1.39% | ― |
* Basic Materials Sector Average
FUL
H.B. Fuller Company
50.20
-7.86
-13.54%
ASH
Ashland
69.52
21.85
45.85%
EMN
Eastman Chemical
64.87
4.19
6.90%
PPG
PPG Industries
105.15
4.27
4.23%
RPM
RPM International
99.19
-12.74
-11.38%
AXTA
Axalta Coating Systems
32.20
4.02
14.27%
H.B. Fuller Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
H.B. Fuller Refinances Credit Facilities, Enhancing Liquidity
Positive
Jul 20, 2026
On July 17, 2026, H.B. Fuller Company amended its existing credit agreement with a syndicate of lenders led by JPMorgan Chase Bank, N.A., refinancing its term A loans with new facilities totaling $420 million and its revolving loans with $700 mill...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.