- Despite its growing revenue, the company underperformed as compared with the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 14.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
- FULLER (H. B.) CO has improved earnings per share by 23.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FULLER (H. B.) CO reported lower earnings of $1.42 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.42).
- FUL has underperformed the S&P 500 Index, declining 8.31% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Chemicals industry and the overall market, FULLER (H. B.) CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
NEW YORK ( TheStreet) -- H.B. Fuller Company (NYSE: FUL) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins. Highlights from the ratings report include: