HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
485.73 USD
+1.59 (+0.33%)
485.73 USD
0 (0%)
Overall HUBB gets a fundamental rating of 7 out of 10. We evaluated HUBB against 91 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making HUBB a very profitable company, without any liquidiy or solvency issues. HUBB is not valued too expensively and it also shows a decent growth rate. Finally 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.
- HUBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HUBB's Return On Assets of 11.49% is amongst the best of the industry. HUBB outperforms 93.41% of its industry peers.
- HUBB has a better Return On Equity (23.49%) than 93.41% of its industry peers.
- The Return On Invested Capital of HUBB (15.21%) is better than 95.60% of its industry peers.
- HUBB had an Average Return On Invested Capital over the past 3 years of 14.28%. This is above the industry average of 9.92%.
- The last Return On Invested Capital (15.21%) for HUBB is above the 3 year average (14.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.49% | ||
| ROE | 23.49% | ||
| ROIC | 15.21% |
ROA(3y)10.89%
ROA(5y)9.42%
ROE(3y)24.39%
ROE(5y)21.59%
ROIC(3y)14.28%
ROIC(5y)12.41%
1.3 Margins
- HUBB's Profit Margin of 15.21% is amongst the best of the industry. HUBB outperforms 90.11% of its industry peers.
- HUBB's Profit Margin has improved in the last couple of years.
- HUBB's Operating Margin of 20.68% is amongst the best of the industry. HUBB outperforms 97.80% of its industry peers.
- HUBB's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 35.31%, HUBB is doing good in the industry, outperforming 78.02% of the companies in the same industry.
- In the last couple of years the Gross Margin of HUBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.68% | ||
| PM (TTM) | 15.21% | ||
| GM | 35.31% |
OM growth 3Y15.35%
OM growth 5Y6.87%
PM growth 3Y13.25%
PM growth 5Y6.38%
GM growth 3Y7.31%
GM growth 5Y2.4%
2. Health
2.1 Basic Checks
- HUBB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for HUBB remains at a similar level compared to 1 year ago.
- HUBB has less shares outstanding than it did 5 years ago.
- HUBB has a better debt/assets ratio than last year.
2.2 Solvency
- HUBB has an Altman-Z score of 6.15. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.15, HUBB belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
- HUBB has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as HUBB would need 2.35 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.35, HUBB belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
- A Debt/Equity ratio of 0.43 indicates that HUBB is not too dependend on debt financing.
- HUBB has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.79
WACC8.52%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HUBB should not have too much problems paying its short term obligations.
- HUBB has a Current ratio (1.36) which is in line with its industry peers.
- A Quick Ratio of 0.85 indicates that HUBB may have some problems paying its short term obligations.
- HUBB has a Quick ratio of 0.85. This is in the lower half of the industry: HUBB underperforms 62.64% of its industry peers.
- The current and quick ratio evaluation for HUBB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- HUBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.60%, which is quite good.
- HUBB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.29% yearly.
- The Revenue has been growing slightly by 0.82% in the past year.
- The Revenue has been growing slightly by 7.36% on average over the past years.
EPS 1Y (TTM)9.6%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%15.14%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%4.15%
3.2 Future
- The Earnings Per Share is expected to grow by 8.68% on average over the next years. This is quite good.
- HUBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y12.06%
EPS Next 2Y10.47%
EPS Next 3Y9.17%
EPS Next 5Y8.68%
Revenue Next Year2.39%
Revenue Next 2Y5.07%
Revenue Next 3Y5.11%
Revenue Next 5Y5.52%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 27.44, which means the current valuation is very expensive for HUBB.
- Based on the Price/Earnings ratio, HUBB is valued cheaper than 81.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HUBB to the average of the S&P500 Index (28.60), we can say HUBB is valued inline with the index average.
- The Price/Forward Earnings ratio is 24.04, which indicates a rather expensive current valuation of HUBB.
- HUBB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 76.92% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. HUBB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 24.04 |
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 79.12% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBB indicates a rather cheap valuation: HUBB is cheaper than 80.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 19.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HUBB does not grow enough to justify the current Price/Earnings ratio.
- HUBB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)1.79
EPS Next 2Y10.47%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
- HUBB has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.26, HUBB pays a better dividend. On top of this HUBB pays more dividend than 91.21% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, HUBB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
- The dividend of HUBB is nicely growing with an annual growth rate of 7.79%!
- HUBB has paid a dividend for at least 10 years, which is 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)7.79%
Div Incr Years17
Div Non Decr Years34
5.3 Sustainability
- HUBB pays out 32.59% of its income as dividend. This is a sustainable payout ratio.
- HUBB's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.59%
EPS Next 2Y10.47%
EPS Next 3Y9.17%
HUBBELL INC / HUBB FAQ
Can you provide the ChartMill fundamental rating for HUBBELL INC?
ChartMill assigns a fundamental rating of 7 / 10 to HUBB.
What is the valuation status for HUBB stock?
ChartMill assigns a valuation rating of 5 / 10 to HUBBELL INC (HUBB). This can be considered as Fairly Valued.
How profitable is HUBBELL INC (HUBB) stock?
HUBBELL INC (HUBB) has a profitability rating of 9 / 10.
What is the financial health of HUBBELL INC (HUBB) stock?
The financial health rating of HUBBELL INC (HUBB) is 7 / 10.
Can you provide the dividend sustainability for HUBB stock?
The dividend rating of HUBBELL INC (HUBB) is 7 / 10 and the dividend payout ratio is 32.59%.