HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock - Currency: USD
Overall HUBB gets a fundamental rating of 7 out of 10. We evaluated HUBB against 94 industry peers in the Electrical Equipment industry. HUBB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HUBB has a decent growth rate and is not valued too expensively. Finally HUBB also has an excellent dividend rating. This makes HUBB very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HUBB was profitable.
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 has a Return On Assets of 11.53%. This is amongst the best in the industry. HUBB outperforms 95.74% of its industry peers.
HUBB's Return On Equity of 24.47% is amongst the best of the industry. HUBB outperforms 93.62% of its industry peers.
With an excellent Return On Invested Capital value of 16.04%, HUBB belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HUBB is above the industry average of 9.89%.
The last Return On Invested Capital (16.04%) for HUBB is above the 3 year average (14.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 24.47% | ||
| ROIC | 16.04% |
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 14.27% is amongst the best of the industry. HUBB outperforms 91.49% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB's Operating Margin of 19.87% is amongst the best of the industry. HUBB outperforms 97.87% of its industry peers.
HUBB's Operating Margin has improved in the last couple of years.
HUBB's Gross Margin of 34.21% is amongst the best of the industry. HUBB outperforms 80.85% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 14.27% | ||
| GM | 34.21% |
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.
HUBB has about the same amout of shares outstanding than it did 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
An Altman-Z score of 5.70 indicates that HUBB is not in any danger for bankruptcy at the moment.
HUBB has a Altman-Z score of 5.70. This is amongst the best in the industry. HUBB outperforms 87.23% of its industry peers.
HUBB has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as HUBB would need 2.41 years to pay back of all of its debts.
HUBB has a better Debt to FCF ratio (2.41) than 81.91% of its industry peers.
HUBB has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
HUBB has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.61
WACC9.95%
2.3 Liquidity
HUBB has a Current Ratio of 1.17. This is a normal value and indicates that HUBB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.17, HUBB is not doing good in the industry: 65.96% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that HUBB may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, HUBB is not doing good in the industry: 67.02% of the companies in the same industry are doing better.
HUBB does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.17 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
HUBB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.51%.
Measured over the past years, HUBB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.29% on average per year.
Looking at the last year, HUBB shows a small growth in Revenue. The Revenue has grown by 1.97% 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)7.51%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%-2.78%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
3.2 Future
Based on estimates for the next years, HUBB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.34% on average per year.
Based on estimates for the next years, HUBB will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y7.37%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
EPS Next 5Y8.34%
Revenue Next Year4.07%
Revenue Next 2Y5%
Revenue Next 3Y4.53%
Revenue Next 5Y5.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HUBB is valuated rather expensively with a Price/Earnings ratio of 24.94.
Compared to the rest of the industry, the Price/Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 77.66% of the companies listed in the same industry.
HUBB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 21.10 indicates a rather expensive valuation of HUBB.
74.47% of the companies in the same industry are more expensive than HUBB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, HUBB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
HUBB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 17.45 |
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)3.38
PEG (5Y)1.63
EPS Next 2Y8.39%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, HUBB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.40, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
On average, the dividend of HUBB grows each year by 7.79%, 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)7.79%
Div Incr Years17
Div Non Decr Years34
5.3 Sustainability
HUBB pays out 34.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of HUBB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.14%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
410.51
+2.1 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change0.63%
Ins Owners0.39%
Ins Owner Change6.6%
Market Cap21.91B
Analysts74
Price Target427.79 (4.21%)
Short Float %4.74%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP34.14%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.93%
Min EPS beat(2)-7.85%
Max EPS beat(2)-0.02%
EPS beat(4)1
Avg EPS beat(4)-1.99%
Min EPS beat(4)-7.85%
Max EPS beat(4)1.07%
EPS beat(8)3
Avg EPS beat(8)-0.54%
EPS beat(12)7
Avg EPS beat(12)5.36%
EPS beat(16)9
Avg EPS beat(16)4.63%
Revenue beat(2)0
Avg Revenue beat(2)-5.6%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-3.93%
Revenue beat(4)0
Avg Revenue beat(4)-4.88%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-3.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.97%
Revenue beat(16)5
Avg Revenue beat(16)-5.46%
PT rev (1m)1.24%
PT rev (3m)-7.65%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 21.1 | ||
| P/S | 3.92 | ||
| P/FCF | 28.44 | ||
| P/OCF | 23.4 | ||
| P/B | 6.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.45 |
EPS(TTM)16.46
EY4.01%
EPS(NY)19.46
Fwd EY4.74%
FCF(TTM)14.43
FCFY3.52%
OCF(TTM)17.55
OCFY4.27%
SpS104.83
BVpS61.11
TBVpS-7.09
PEG (NY)3.38
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 24.47% | ||
| ROCE | 22.3% | ||
| ROIC | 16.04% | ||
| ROICexc | 17.18% | ||
| ROICexgc | 61.83% | ||
| OM | 19.87% | ||
| PM (TTM) | 14.27% | ||
| GM | 34.21% | ||
| FCFM | 13.77% |
ROA(3y)10.89%
ROA(5y)9.42%
ROE(3y)24.39%
ROE(5y)21.59%
ROIC(3y)14.28%
ROIC(5y)12.41%
ROICexc(3y)15.44%
ROICexc(5y)13.39%
ROICexgc(3y)49.94%
ROICexgc(5y)42.26%
ROCE(3y)18.59%
ROCE(5y)16.19%
ROICexcg growth 3Y20.93%
ROICexcg growth 5Y10%
ROICexc growth 3Y16.01%
ROICexc growth 5Y8.34%
OM growth 3Y15.35%
OM growth 5Y6.87%
PM growth 3Y13.25%
PM growth 5Y6.38%
GM growth 3Y7.31%
GM growth 5Y2.4%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 83.51% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.46% | ||
| Profit Quality | 96.5% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 5.7 |
F-Score7
WACC9.95%
ROIC/WACC1.61
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)7.51%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%-2.78%
EPS Next Y7.37%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
EPS Next 5Y8.34%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
Revenue Next Year4.07%
Revenue Next 2Y5%
Revenue Next 3Y4.53%
Revenue Next 5Y5.33%
EBIT growth 1Y8.08%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year16.46%
EBIT Next 3Y9.72%
EBIT Next 5Y9.2%
FCF growth 1Y30.1%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y27.68%
OCF growth 3Y22.15%
OCF growth 5Y10.87%