HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock - Currency: USD
HUBB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. HUBB scores excellent on profitability, but there are some minor concerns on its financial health. HUBB has a decent growth rate and is not valued too expensively. HUBB also has an excellent dividend rating. These ratings would make HUBB suitable for dividend investing!
1. Profitability
1.1 Basic Checks
HUBB had positive earnings in the past year.
HUBB had a positive operating cash flow in the past year.
HUBB had positive earnings in each of the past 5 years.
In the past 5 years HUBB always reported a positive cash flow from operatings.
1.2 Ratios
HUBB has a better Return On Assets (11.62%) than 95.65% of its industry peers.
Looking at the Return On Equity, with a value of 23.75%, HUBB belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.95%, HUBB belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 10.23%.
The last Return On Invested Capital (15.95%) for HUBB is above the 3 year average (14.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROIC | 15.95% |
ROA(3y)10.89%
ROA(5y)9.42%
ROE(3y)24.39%
ROE(5y)21.59%
ROIC(3y)14.43%
ROIC(5y)12.5%
1.3 Margins
HUBB has a better Profit Margin (13.79%) than 93.48% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB has a better Operating Margin (19.65%) than 97.83% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
The Gross Margin of HUBB (34.01%) is better than 80.43% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.65% | ||
| PM (TTM) | 13.79% | ||
| GM | 34.01% |
OM growth 3Y15.58%
OM growth 5Y7%
PM growth 3Y13.25%
PM growth 5Y6.38%
GM growth 3Y7.38%
GM growth 5Y2.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HUBB is creating value.
Compared to 1 year ago, HUBB has about the same amount of shares outstanding.
Compared to 5 years ago, HUBB has less shares outstanding
HUBB has a better debt/assets ratio than last year.
2.2 Solvency
HUBB has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
The Debt to FCF ratio of HUBB (1.93) is better than 85.87% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that HUBB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, HUBB is in line with its industry, outperforming 46.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | N/A |
ROIC/WACC1.83
WACC8.7%
2.3 Liquidity
HUBB has a Current Ratio of 1.64. This is a normal value and indicates that HUBB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HUBB (1.64) is comparable to the rest of the industry.
HUBB has a Quick Ratio of 1.64. This is a bad value and indicates that HUBB is not financially healthy enough and could expect problems in meeting its short term obligations.
HUBB's Quick ratio of 0.98 is in line compared to the rest of the industry. HUBB outperforms 40.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
HUBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.09%, 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.
Looking at the last year, HUBB shows a small growth in Revenue. The Revenue has grown by 4.76% in the last year.
HUBB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.36% yearly.
EPS 1Y (TTM)8.09%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-0.85%
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 11.79% yearly.
Based on estimates for the next years, HUBB will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y7.48%
EPS Next 5Y11.8%
Revenue Next Year4.88%
Revenue Next 2Y4.91%
Revenue Next 3Y4.4%
Revenue Next 5Y6.85%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.79, HUBB is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 77.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HUBB to the average of the S&P500 Index (29.63), we can say HUBB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.97, HUBB is valued on the expensive side.
HUBB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 77.17% of the companies in the same industry.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than HUBB, based on the Enterprise Value to EBITDA ratio.
78.26% of the companies in the same industry are more expensive than HUBB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.99 | ||
| EV/EBITDA | 16.77 |
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)2.62
PEG (5Y)1.49
EPS Next 2Y8.11%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
HUBB's Dividend Yield is rather good when compared to the industry average which is at 3.59. HUBB pays more dividend than 90.22% of the companies in the same industry.
With a Dividend Yield of 1.34, HUBB pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of HUBB grows each year by 7.81%, which is quite nice.
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)7.81%
Div Incr Years17
Div Non Decr Years34
5.3 Sustainability
34.43% of the earnings are spent on dividend by HUBB. This is a low number and sustainable payout ratio.
HUBB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.43%
EPS Next 2Y8.11%
EPS Next 3Y7.48%
377.48
-11.94 (-3.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change-17.25%
Ins Owners0.33%
Ins Owner Change2.79%
Market Cap20.26B
Analysts74.29
Price Target475.86 (26.06%)
Short Float %2.98%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend4.98
Dividend Growth(5Y)7.81%
DP34.43%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.58%
Min EPS beat(2)-1.15%
Max EPS beat(2)-0.02%
EPS beat(4)1
Avg EPS beat(4)-0.11%
Min EPS beat(4)-1.15%
Max EPS beat(4)1.07%
EPS beat(8)4
Avg EPS beat(8)5.82%
EPS beat(12)8
Avg EPS beat(12)7.04%
EPS beat(16)10
Avg EPS beat(16)5.27%
Revenue beat(2)0
Avg Revenue beat(2)-5.93%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-4.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.27%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-1.47%
Revenue beat(8)2
Avg Revenue beat(8)-2.75%
Revenue beat(12)5
Avg Revenue beat(12)-1.23%
Revenue beat(16)5
Avg Revenue beat(16)-5.98%
PT rev (1m)-0.78%
PT rev (3m)5.47%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-2.73%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 20.97 | ||
| P/S | 3.6 | ||
| P/FCF | 24.99 | ||
| P/OCF | 20.44 | ||
| P/B | 6.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.77 |
EPS(TTM)16.56
EY4.39%
EPS(NY)18
Fwd EY4.77%
FCF(TTM)15.11
FCFY4%
OCF(TTM)18.47
OCFY4.89%
SpS104.87
BVpS60.9
TBVpS-5.82
PEG (NY)2.62
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROCE | 20.47% | ||
| ROIC | 15.95% | ||
| ROICexc | 17.03% | ||
| ROICexgc | 58.27% | ||
| OM | 19.65% | ||
| PM (TTM) | 13.79% | ||
| GM | 34.01% | ||
| FCFM | 14.41% |
ROA(3y)10.89%
ROA(5y)9.42%
ROE(3y)24.39%
ROE(5y)21.59%
ROIC(3y)14.43%
ROIC(5y)12.5%
ROICexc(3y)15.61%
ROICexc(5y)13.49%
ROICexgc(3y)51.57%
ROICexgc(5y)43.24%
ROCE(3y)18.64%
ROCE(5y)16.21%
ROICexcg growth 3Y24.5%
ROICexcg growth 5Y11.94%
ROICexc growth 3Y17.19%
ROICexc growth 5Y9%
OM growth 3Y15.58%
OM growth 5Y7%
PM growth 3Y13.25%
PM growth 5Y6.38%
GM growth 3Y7.38%
GM growth 5Y2.44%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 85.05% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.19% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | N/A |
F-Score8
WACC8.7%
ROIC/WACC1.83
Cap/Depr(3y)94.27%
Cap/Depr(5y)80.12%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.66%
Profit Quality(3y)94.05%
Profit Quality(5y)111.5%
High Growth Momentum
Growth
EPS 1Y (TTM)8.09%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%11.11%
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y7.48%
EPS Next 5Y11.8%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-0.85%
Revenue Next Year4.88%
Revenue Next 2Y4.91%
Revenue Next 3Y4.4%
Revenue Next 5Y6.85%
EBIT growth 1Y5.97%
EBIT growth 3Y27.49%
EBIT growth 5Y14.87%
EBIT Next Year20.37%
EBIT Next 3Y10.54%
EBIT Next 5Y11.76%
FCF growth 1Y13.38%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y12.53%
OCF growth 3Y22.15%
OCF growth 5Y10.87%