HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to HUBB. HUBB was compared to 97 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 has a correct valuation and a medium growth rate. HUBB also has an excellent dividend rating. These ratings could make HUBB a good candidate 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.
Each year in the past 5 years HUBB has been profitable.
Each year in the past 5 years HUBB had a positive operating cash flow.
1.2 Ratios
HUBB has a better Return On Assets (11.62%) than 95.88% of its industry peers.
HUBB's Return On Equity of 23.75% is amongst the best of the industry. HUBB outperforms 94.85% of its industry peers.
The Return On Invested Capital of HUBB (15.56%) is better than 94.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HUBB is above the industry average of 9.56%.
The last Return On Invested Capital (15.56%) for HUBB is above the 3 year average (14.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROIC | 15.56% |
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
Looking at the Profit Margin, with a value of 13.79%, HUBB belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
HUBB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.62%, HUBB belongs to the top of the industry, outperforming 97.94% of the companies in the same industry.
In the last couple of years the Operating Margin of HUBB has grown nicely.
HUBB's Gross Margin of 33.99% is fine compared to the rest of the industry. HUBB outperforms 78.35% of its industry peers.
In the last couple of years the Gross Margin of HUBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 13.79% | ||
| GM | 33.99% |
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 well above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for HUBB has been reduced compared to a year ago.
2.2 Solvency
HUBB has an Altman-Z score of 5.49. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.49, HUBB belongs to the best of the industry, outperforming 89.69% of the companies in the same industry.
The Debt to FCF ratio of HUBB is 1.93, which is an excellent value as it means it would take HUBB, only 1.93 years of fcf income to pay off all of its debts.
HUBB's Debt to FCF ratio of 1.93 is amongst the best of the industry. HUBB outperforms 88.66% of its industry peers.
HUBB has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HUBB (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 5.49 |
ROIC/WACC1.84
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.64 indicates that HUBB should not have too much problems paying its short term obligations.
HUBB's Current ratio of 1.64 is in line compared to the rest of the industry. HUBB outperforms 48.45% of its industry peers.
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.
The Quick ratio of HUBB (0.98) is comparable to the rest of the industry.
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 | 1.64 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.09% over the past year.
The Earnings Per Share has been growing by 15.29% on average over the past years. This is quite good.
Looking at the last year, HUBB shows a small growth in Revenue. The Revenue has grown by 4.76% in the last year.
The Revenue has been growing slightly by 7.36% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.74% on average over the next years. This is quite good.
Based on estimates for the next years, HUBB will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
EPS Next 5Y8.74%
Revenue Next Year2.78%
Revenue Next 2Y4.1%
Revenue Next 3Y4.23%
Revenue Next 5Y5.42%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 20.47 indicates a rather expensive valuation of HUBB.
Compared to the rest of the industry, the Price/Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 75.26% of the companies listed in the same industry.
HUBB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
HUBB is valuated rather expensively with a Price/Forward Earnings ratio of 18.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 76.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, HUBB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
76.29% of the companies in the same industry are more expensive than HUBB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HUBB is valued a bit cheaper than the industry average as 77.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.4 | ||
| EV/EBITDA | 14.71 |
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)2.46
PEG (5Y)1.34
EPS Next 2Y8.24%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
The stock price of HUBB dropped by -22.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.62, HUBB pays a better dividend. On top of this HUBB pays more dividend than 89.69% of the companies listed in the same industry.
HUBB's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.79%
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.43%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
338.97
+0.19 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.48%
Ins Owners0.35%
Ins Owner Change4.65%
Market Cap18.16B
Analysts74.29
Price Target459.75 (35.63%)
Short Float %4.01%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
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)-0.75%
PT rev (3m)-4.14%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.9 | ||
| P/S | 3.23 | ||
| P/FCF | 22.4 | ||
| P/OCF | 18.32 | ||
| P/B | 5.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.71 |
EPS(TTM)16.56
EY4.89%
EPS(NY)17.94
Fwd EY5.29%
FCF(TTM)15.14
FCFY4.47%
OCF(TTM)18.5
OCFY5.46%
SpS105.07
BVpS61.01
TBVpS-5.83
PEG (NY)2.46
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROCE | 20.43% | ||
| ROIC | 15.56% | ||
| ROICexc | 16.6% | ||
| ROICexgc | 53.63% | ||
| OM | 19.62% | ||
| PM (TTM) | 13.79% | ||
| GM | 33.99% | ||
| FCFM | 14.41% |
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-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 85.05% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 13.21 | ||
| Cash Conversion | 75.29% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.49 |
F-Score8
WACC8.47%
ROIC/WACC1.84
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 Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
EPS Next 5Y8.74%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-0.85%
Revenue Next Year2.78%
Revenue Next 2Y4.1%
Revenue Next 3Y4.23%
Revenue Next 5Y5.42%
EBIT growth 1Y5.8%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.7%
EBIT Next 3Y10.2%
EBIT Next 5Y9.57%
FCF growth 1Y13.38%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y12.53%
OCF growth 3Y22.15%
OCF growth 5Y10.87%