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H.B. Fuller Co (H.B. Fuller Co) Beneish M-Score : -2.86 (As of Apr. 26, 2024)


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What is H.B. Fuller Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for H.B. Fuller Co's Beneish M-Score or its related term are showing as below:

FUL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86   Med: -2.6   Max: -2.06
Current: -2.86

During the past 13 years, the highest Beneish M-Score of H.B. Fuller Co was -2.06. The lowest was -2.86. And the median was -2.60.


H.B. Fuller Co Beneish M-Score Historical Data

The historical data trend for H.B. Fuller Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

H.B. Fuller Co Beneish M-Score Chart

H.B. Fuller Co Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.67 -2.64 -2.32 -2.53 -2.80

H.B. Fuller Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.66 -2.78 -2.83 -2.80 -2.86

Competitive Comparison of H.B. Fuller Co's Beneish M-Score

For the Specialty Chemicals subindustry, H.B. Fuller Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


H.B. Fuller Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, H.B. Fuller Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where H.B. Fuller Co's Beneish M-Score falls into.



H.B. Fuller Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of H.B. Fuller Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9783+0.528 * 0.8866+0.404 * 1.0182+0.892 * 0.9488+0.115 * 0.9822
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1184+4.679 * -0.054363-0.327 * 0.9664
=-2.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Feb24) TTM:Last Year (Feb23) TTM:
Total Receivables was $526 Mil.
Revenue was 810.419 + 902.879 + 900.634 + 898.239 = $3,512 Mil.
Gross Profit was 239.237 + 273.842 + 263.472 + 256.775 = $1,033 Mil.
Total Current Assets was $1,297 Mil.
Total Assets was $4,682 Mil.
Property, Plant and Equipment(Net PPE) was $823 Mil.
Depreciation, Depletion and Amortization(DDA) was $165 Mil.
Selling, General, & Admin. Expense(SGA) was $603 Mil.
Total Current Liabilities was $653 Mil.
Long-Term Debt & Capital Lease Obligation was $1,829 Mil.
Net Income was 30.991 + 44.99 + 37.627 + 40.401 = $154 Mil.
Non Operating Income was 1.501 + -15.328 + 1.555 + 0.605 = $-12 Mil.
Cash Flow from Operations was 47.351 + 161.704 + 108.297 + 102.852 = $420 Mil.
Total Receivables was $566 Mil.
Revenue was 809.183 + 958.214 + 941.23 + 993.258 = $3,702 Mil.
Gross Profit was 214.809 + 248.122 + 249.164 + 253.521 = $966 Mil.
Total Current Assets was $1,341 Mil.
Total Assets was $4,536 Mil.
Property, Plant and Equipment(Net PPE) was $757 Mil.
Depreciation, Depletion and Amortization(DDA) was $149 Mil.
Selling, General, & Admin. Expense(SGA) was $568 Mil.
Total Current Liabilities was $643 Mil.
Long-Term Debt & Capital Lease Obligation was $1,845 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(525.689 / 3512.171) / (566.358 / 3701.885)
=0.149676 / 0.152992
=0.9783

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(965.616 / 3701.885) / (1033.326 / 3512.171)
=0.260844 / 0.294213
=0.8866

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1296.848 + 822.899) / 4681.973) / (1 - (1340.915 + 757.021) / 4535.736)
=0.547253 / 0.537465
=1.0182

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3512.171 / 3701.885
=0.9488

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(148.952 / (148.952 + 757.021)) / (165.433 / (165.433 + 822.899))
=0.164411 / 0.167386
=0.9822

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(602.694 / 3512.171) / (567.991 / 3701.885)
=0.171602 / 0.153433
=1.1184

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1829.253 + 653.177) / 4681.973) / ((1845.281 + 643.176) / 4535.736)
=0.53021 / 0.548634
=0.9664

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(154.009 - -11.667 - 420.204) / 4681.973
=-0.054363

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

H.B. Fuller Co has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.


H.B. Fuller Co Beneish M-Score Related Terms

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H.B. Fuller Co (H.B. Fuller Co) Business Description

Traded in Other Exchanges
Address
1200 Willow Lake Boulevard, P.O. Box 64683, Saint Paul, MN, USA, 55110-5101
H.B. Fuller Co manufactures and sells adhesives, sealants, and other chemical-based products. The company organizes itself into three business units: constructions, engineering, and hygiene, health and consumable adhesives. It generates the most revenue from hygiene, health and consumable adhesives. This business manufactures and supplies adhesives products in the assembly, packaging, converting, nonwoven and hygiene, health and beauty, flexible packaging, graphic arts, and envelope markets. The company generates around half of its revenue in the United States, with the remainder spread across 35 countries. The company has put an emphasis on environmentally friendly products, aligning with a trend of environmental, social, and governance investing.
Executives
Gregory O. Ogunsanya officer: Sr. VP, GC and Corp Secretary 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Traci L Jensen officer: VP, Americas Adhesives 1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683
Robert J Martsching officer: VP, Corporate Controller 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Timothy J Keenan officer: Gen'l Counsel, Corp Secretary 1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683
Heather Campe officer: VP, Asia Pacific 1200 WILLOW LAKE BLVD, P.O. BOX 64683, ST. PAUL MN 55110
Charles T Lauber director A. O. SMITH CORPORATION, 500 TENNESSEE WALTZ PARKWAY, ASHLAND CITY TN 37015
James J. East officer: Senior Vice President, HHC 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
James Owens officer: Senior VP, North America 1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683
Zhiwei Cai officer: Sr.VP. Engineering Adhesives 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Nathan D. Weaver officer: VP, Human Resources 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Srilata Zaheer director 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Celeste Beeks Mastin officer: Executive VP and COO 21 ERIE STREET, CAMBRIDGE MA 02139
Michael J Happe director P.O. BOX 152, FOREST CITY IA 50436
Rasmussen Trangsrud Teresa J director 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Van Sant R William director PO BOX 1441, MINNEAPOLIS MN 55440-1441

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