Shares in Review: H.B. Fuller Company (NYSE:FUL)

H.B. Fuller Company (NYSE:FUL) currently has a Gross Margin (Marx) ratio of 0.283425. Robert Novy-Marx has provided investors with insights on finding high-quality value stocks. Marx pointed to a high gross income ratio defining the quality of a company. H.B. Fuller Company has a Gross Margin score of 5. The Gross Margin score falls between 1 and 100 where a score of 1 would be good, and a score of 100 would be considered bad. This score is based on the Gross Margin stability and growth over the previous 8 years.

Focusing in further, H.B. Fuller Company (NYSE:FUL) has an EV (Enterprise Value) of 3256039. EV represents the total economic value of a specific company. EV is considered to gauge the theoretical takeover price if a company was to be acquired. EV takes into account more than just the outstanding equity. Debt and cash can have a big impact on a firm’s Enterprise Value. Although two companies may have the same market cap, they may have highly different EV values. We can now shift the focus to some current ROIC (Return on Invested Capital) data for H.B. Fuller Company (NYSE:FUL). ROIC is a commonly used financial metric that measures how efficient a company is with earning cash flow through invested capital. A typical ROIC calculation divides operating income, adjusted for its tax rate, by total debt plus shareholder equity minus cash. The aim of the ROIC calculation is to show how much new cash is generated from capital investments. After a recent check, H.B. Fuller Company’s ROIC is 0.185056. The ROIC 5 year average is 0.180641 and the ROIC Quality ratio is at 7.293135.

Investors searching for value in the stock market may be checking on the Magic Formula Rank or MF Rank for H.B. Fuller Company (NYSE:FUL). H.B. Fuller Company currently has a MF Rank of 4349. The Magic Formula was devised and made popular by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps seek out stocks that are priced attractively with a high earnings yield, or solid reported profits in comparison to the market value of the company. To spot opportunities in the market, investors may be looking at stocks that have the lowest combined MF Rank.

H.B. Fuller Company (NYSE:FUL) has a current Value Composite score of 36. This score falls on a scale from 0 to 100 where a lower score would indicate an undervalued company and a higher score would indicate an overvalued company. This ranking was created by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.

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