H.B. Fuller's (NYSE:FUL) Returns On Capital Are Heading Higher

Simply Wall St.10-21

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns...

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One common approach is to try and find a company with returns...</p>\n\n<a href=\"https://finance.yahoo.com/news/h-b-fullers-nyse-ful-153313583.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>H.B. 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Fuller's (NYSE:FUL) Returns On Capital Are Heading Higher\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-21 23:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/h-b-fullers-nyse-ful-153313583.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns...</p>\n\n<a href=\"https://finance.yahoo.com/news/h-b-fullers-nyse-ful-153313583.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EBIT","symbol_name":"Harbor AlphaEdge Small Cap Earners ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/h-b-fullers-nyse-ful-153313583.html","article_id":"2477860738","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/9cCdtydKo66lUAQFOAtM3Q--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/7dcbeb026ed19dd2c830be7b78839b8e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477860738","pubTimestamp":1729524793,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns on capital employed  that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So when we looked at H.B. Fuller  and its trend of ROCE, we really liked what we saw.Return On Capital Employed : What Is It?Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income  a company earns on the capital invested in its business. The formula for this calculation on H.B. Fuller is:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Thus, H.B. Fuller has an ROCE of 9.9%.  On its own, that's a low figure but it's around the 8.7% average generated by the Chemicals industry.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EBIT":"Harbor AlphaEdge Small Cap Earners ETF","BK4109":"特种化学制品","NYSE":"纽交所","FUL":"富乐"},"translate_title":"H.B.富勒（纽约证券交易所股票代码：FUL）的资本回报率正在上升","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"FUL":1,"NYSE":1},"content_text":"Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So when we looked at H.B. Fuller (NYSE:FUL) and its trend of ROCE, we really liked what we saw. \n Return On Capital Employed (ROCE): What Is It? \n Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on H.B. Fuller is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.099 = US$425m ÷ (US$5.0b - US$705m) (Based on the trailing twelve months to August 2024).\n Thus, H.B. Fuller has an ROCE of 9.9%.  On its own, that's a low figure but it's around the 8.7% average generated by the Chemicals industry. \n See our latest analysis for H.B. Fuller \n\n\n\n  NYSE:FUL Return on Capital Employed October 21st 2024\n \n\n Above you can see how the current ROCE for H.B. Fuller compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for H.B. Fuller . \n What Does the ROCE Trend For H.B. Fuller Tell Us? \n H.B. Fuller's ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 35% in that same time. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. \n Our Take On H.B. Fuller's ROCE \n To sum it up, H.B. Fuller is collecting higher returns from the same amount of capital, and that's impressive. Since the stock has returned a solid 69% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. \n On a separate note, we've found   1 warning sign for H.B. Fuller   you'll probably want to know about. \n For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477860738"}