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Should Value Investors Buy H. B. Fuller (FUL) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is H. B. Fuller (FUL - Free Report) . FUL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.94. This compares to its industry's average Forward P/E of 21.81. Over the past year, FUL's Forward P/E has been as high as 18.44 and as low as 11.31, with a median of 13.44.

Investors will also notice that FUL has a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUL's industry currently sports an average PEG of 1.46. FUL's PEG has been as high as 1.54 and as low as 0.71, with a median of 1.01, all within the past year.

Another notable valuation metric for FUL is its P/B ratio of 1.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FUL's current P/B looks attractive when compared to its industry's average P/B of 3.77. FUL's P/B has been as high as 2.49 and as low as 1.48, with a median of 1.77, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUL has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.96.

Finally, our model also underscores that FUL has a P/CF ratio of 11.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FUL's current P/CF looks attractive when compared to its industry's average P/CF of 15.34. Within the past 12 months, FUL's P/CF has been as high as 14.30 and as low as 9.48, with a median of 11.67.

These are only a few of the key metrics included in H. B. Fuller's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUL looks like an impressive value stock at the moment.

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