HUBBELL INC (HUBB)
US4435106079 - Common Stock
We assign a fundamental rating of 6 out of 10 to HUBB. HUBB was compared to 88 industry peers in the Electrical Equipment industry. HUBB scores excellent on profitability, but there are some minor concerns on its financial health. HUBB is not valued too expensively and it also shows a decent growth rate. HUBB also has an excellent dividend rating. With these ratings, HUBB could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
HUBB had positive earnings in the past year.
In the past year HUBB had a positive cash flow from operations.
HUBB had positive earnings in each of the past 5 years.
Each year in the past 5 years HUBB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.82%, HUBB belongs to the top of the industry, outperforming 94.32% of the companies in the same industry.
HUBB has a Return On Equity of 23.34%. This is amongst the best in the industry. HUBB outperforms 94.32% of its industry peers.
The Return On Invested Capital of HUBB (14.43%) is better than 95.45% of its industry peers.
HUBB had an Average Return On Invested Capital over the past 3 years of 12.44%. This is above the industry average of 9.38%.
The last Return On Invested Capital (14.43%) for HUBB is above the 3 year average (12.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.82% | ||
| ROE | 23.34% | ||
| ROIC | 14.43% |
ROA(3y)9.53%
ROA(5y)8.72%
ROE(3y)22.42%
ROE(5y)20.94%
ROIC(3y)12.44%
ROIC(5y)11.47%
1.3 Margins
Looking at the Profit Margin, with a value of 13.30%, HUBB belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
HUBB's Profit Margin has improved in the last couple of years.
HUBB's Operating Margin of 19.01% is amongst the best of the industry. HUBB outperforms 95.45% of its industry peers.
HUBB's Operating Margin has improved in the last couple of years.
HUBB's Gross Margin of 34.02% is fine compared to the rest of the industry. HUBB outperforms 78.41% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.01% | ||
| PM (TTM) | 13.3% | ||
| GM | 34.02% |
OM growth 3Y11.59%
OM growth 5Y7.06%
PM growth 3Y14.07%
PM growth 5Y11.99%
GM growth 3Y5.58%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HUBB is creating some value.
The number of shares outstanding for HUBB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HUBB has less shares outstanding
Compared to 1 year ago, HUBB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.89 indicates that HUBB is not in any danger for bankruptcy at the moment.
The Altman-Z score of HUBB (5.89) is better than 89.77% of its industry peers.
The Debt to FCF ratio of HUBB is 2.65, which is a good value as it means it would take HUBB, 2.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HUBB (2.65) is better than 78.41% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that HUBB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, HUBB is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 5.89 |
ROIC/WACC1.48
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.66 indicates that HUBB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, HUBB is doing worse than 61.36% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that HUBB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.05, HUBB is not doing good in the industry: 60.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
HUBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.49%, which is quite good.
The Earnings Per Share has been growing by 15.98% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.50% in the past year.
Measured over the past years, HUBB shows a small growth in Revenue. The Revenue has been growing by 3.69% on average per year.
EPS 1Y (TTM)13.49%
EPS 3Y26.49%
EPS 5Y15.98%
EPS Q2Q%13.67%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.42%
Revenue growth 5Y3.69%
Sales Q2Q%4.86%
3.2 Future
HUBB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.80% yearly.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y9.68%
EPS Next 2Y8.61%
EPS Next 3Y8.32%
EPS Next 5Y13.8%
Revenue Next Year6.6%
Revenue Next 2Y5.84%
Revenue Next 3Y5.56%
Revenue Next 5Y7.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.43, the valuation of HUBB can be described as expensive.
73.86% of the companies in the same industry are more expensive than HUBB, based on the Price/Earnings ratio.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.62, which indicates a rather expensive current valuation of HUBB.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than 77.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HUBB to the average of the S&P500 Index (22.83), we can say HUBB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 23.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 73.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HUBB is valued a bit cheaper than the industry average as 73.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.38 | ||
| EV/EBITDA | 18.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HUBB may justify a higher PE ratio.
PEG (NY)2.73
PEG (5Y)1.65
EPS Next 2Y8.61%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, HUBB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.89, HUBB pays a better dividend. On top of this HUBB pays more dividend than 89.77% of the companies listed in the same industry.
With a Dividend Yield of 1.24, HUBB pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
On average, the dividend of HUBB grows each year by 7.77%, which is quite nice.
HUBB has been paying a dividend for at least 10 years, so it has a reliable track record.
HUBB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.77%
Div Incr Years17
Div Non Decr Years34
5.3 Sustainability
HUBB pays out 34.91% of its income as dividend. This is a sustainable payout ratio.
HUBB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.91%
EPS Next 2Y8.61%
EPS Next 3Y8.32%
HUBBELL INC
NYSE:HUBB (12/20/2024, 8:17:20 PM)
After market: 426.8 0 (0%)426.8
+2.25 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change23.54%
Ins Owners0.33%
Ins Owner Change-0.02%
Market Cap22.91B
Analysts74.29
Price Target473.39 (10.92%)
Short Float %4.37%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Dividend Growth(5Y)7.77%
DP34.91%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.04%
Min EPS beat(2)-1.15%
Max EPS beat(2)1.07%
EPS beat(4)2
Avg EPS beat(4)0.18%
Min EPS beat(4)-1.15%
Max EPS beat(4)1.13%
EPS beat(8)5
Avg EPS beat(8)6.72%
EPS beat(12)8
Avg EPS beat(12)6.75%
EPS beat(16)10
Avg EPS beat(16)5.12%
Revenue beat(2)0
Avg Revenue beat(2)-4.17%
Min Revenue beat(2)-4.59%
Max Revenue beat(2)-3.74%
Revenue beat(4)1
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-4.59%
Max Revenue beat(4)0.13%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)5
Avg Revenue beat(12)-4.18%
Revenue beat(16)5
Avg Revenue beat(16)-8.69%
PT rev (1m)4.92%
PT rev (3m)11.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 23.62 | ||
| P/S | 4.06 | ||
| P/FCF | 31.38 | ||
| P/OCF | 25.33 | ||
| P/B | 7.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.97 |
EPS(TTM)16.15
EY3.78%
EPS(NY)18.07
Fwd EY4.23%
FCF(TTM)13.6
FCFY3.19%
OCF(TTM)16.85
OCFY3.95%
SpS105.09
BVpS59.9
TBVpS-7.77
PEG (NY)2.73
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.82% | ||
| ROE | 23.34% | ||
| ROCE | 19.36% | ||
| ROIC | 14.43% | ||
| ROICexc | 15.63% | ||
| ROICexgc | 48.32% | ||
| OM | 19.01% | ||
| PM (TTM) | 13.3% | ||
| GM | 34.02% | ||
| FCFM | 12.94% |
ROA(3y)9.53%
ROA(5y)8.72%
ROE(3y)22.42%
ROE(5y)20.94%
ROIC(3y)12.44%
ROIC(5y)11.47%
ROICexc(3y)13.51%
ROICexc(5y)12.35%
ROICexgc(3y)42.37%
ROICexgc(5y)38.37%
ROCE(3y)16.02%
ROCE(5y)14.84%
ROICexcg growth 3Y17.35%
ROICexcg growth 5Y5.67%
ROICexc growth 3Y15.11%
ROICexc growth 5Y4.05%
OM growth 3Y11.59%
OM growth 5Y7.06%
PM growth 3Y14.07%
PM growth 5Y11.99%
GM growth 3Y5.58%
GM growth 5Y3.36%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.65 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 87.85% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.18% | ||
| Profit Quality | 97.29% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.89 |
F-Score5
WACC9.76%
ROIC/WACC1.48
Cap/Depr(3y)86.09%
Cap/Depr(5y)75.69%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.46%
Profit Quality(3y)97.2%
Profit Quality(5y)115.89%
High Growth Momentum
Growth
EPS 1Y (TTM)13.49%
EPS 3Y26.49%
EPS 5Y15.98%
EPS Q2Q%13.67%
EPS Next Y9.68%
EPS Next 2Y8.61%
EPS Next 3Y8.32%
EPS Next 5Y13.8%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.42%
Revenue growth 5Y3.69%
Sales Q2Q%4.86%
Revenue Next Year6.6%
Revenue Next 2Y5.84%
Revenue Next 3Y5.56%
Revenue Next 5Y7.6%
EBIT growth 1Y8.41%
EBIT growth 3Y26.56%
EBIT growth 5Y11.01%
EBIT Next Year18.46%
EBIT Next 3Y10.83%
EBIT Next 5Y11.59%
FCF growth 1Y49.04%
FCF growth 3Y8.16%
FCF growth 5Y11.18%
OCF growth 1Y55.73%
OCF growth 3Y10.77%
OCF growth 5Y11.24%