HENKY - H.B. Fuller Seeing The Best Volumes In Years But Must Improve Margins

• H.B. Fuller delivered a good fiscal fourth quarter report, with a 6% revenue beat on the best volume growth in three years and a 9% EBITDA beat on better margins.
• Electronics and personal care product markets remain healthy, and autos and general industrial should accelerate throughout 2021, while construction could be a weak spot.
• H.B. Fuller has been a long-term laggard on margins, and the consistently lackluster gross margins make me wonder about the company's innovation, product mix, and value proposition to customers.
• Improved margins would have a major impact on long-term value creation, but as is Fuller looks a little undervalued and well-leveraged to improving end-markets in 2021/22.

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