FUL

H.B. Fuller Company

Industrial/Transportation


Presented:07/19/2023
Price:$73.03
Cap:$3.93B
Current Price:$79.74
Cap:$4.36B

Presented

Date07/19/2023
Price$73.03
Market Cap$3.93B
Ent Value$5.52B
P/E Ratio25.8x
Book Value$31.24
Div Yield1.08%
Shares O/S53.87M
Ave Daily Vol320,358
Short Int2.38%

Current

Price$79.74
Market Cap$4.36B
H.B. Fuller Co. engages in the manufacture and marketing of adhesives, sealants, and other chemical products. It operates through the following business segments: Hygiene, Health, and Consumable Adhesives, Engineering Adhesives, and Construction Adhesives. The Hygiene, Health, and Consumable Adhesives segment supplies adhesive products in the assembly, packaging, converting, nonwoven, hygiene, health and beauty, flexible packaging, graphic arts, and envelope markets. The Engineering Adhesives segment provides adhesives to the transportation, electronics, medical, clean energy, aerospace and defense, performance wood, insulating glass, textile, appliance, and heavy machinery markets. The Construction Adhesives segment manufactures adhesives, sealants, tapes, mortars, and grouts for construction activities. The company was founded by Harvey Benjamin Fuller in 1887 and is headquartered in St. Paul, MN.

Publicly traded companies mentioned herein: HB Fuller Co (FUL)

Highlights

The presenter is long shares of HB Fuller Co (FUL), a diversified downstream chemicals company that makes adhesives, viewing it as a cyclical stock that has experienced business conditions bottoming and will soon reaccelerate. It is diversified both in terms of geographic and end market exposure, has historically been a steady compounder, and traded >10x EBITDA until secular headwinds negatively impacted its volumes more recently. At this point, the bar appears very low and he models 2024 EBITDA ($665MM), above the consensus $647MM using conservative assumptions. As several secular tailwinds and idiosyncratic initiatives flow through the P&L over the next 18 months, he expects a rerating from 8.5x 2024 EBITDA to 10x – 11x.

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