HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock
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. 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.
In the past 5 years HUBB has always been profitable.
HUBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.82%, HUBB belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.34%, HUBB belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.43%, HUBB belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HUBB is in line with the industry average of 10.46%.
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
HUBB has a better Profit Margin (13.30%) than 91.21% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
The Operating Margin of HUBB (19.01%) is better than 95.60% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
The Gross Margin of HUBB (34.02%) is better than 79.12% 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.
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.
The debt/assets ratio for HUBB is higher compared to a year ago.
2.2 Solvency
HUBB has an Altman-Z score of 5.98. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.98, HUBB belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
HUBB has a debt to FCF ratio of 2.65. This is a good value and a sign of high solvency as HUBB would need 2.65 years to pay back of all of its debts.
HUBB has a Debt to FCF ratio of 2.65. This is in the better half of the industry: HUBB outperforms 79.12% of its industry peers.
HUBB has a Debt/Equity ratio of 0.60. This is a neutral value indicating HUBB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, HUBB is in line with its industry, outperforming 40.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.36
WACC10.58%
2.3 Liquidity
HUBB has a Current Ratio of 1.66. 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 1.66, HUBB perfoms like the industry average, outperforming 40.66% 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.
HUBB has a Quick ratio (1.05) which is comparable to the rest of the industry.
| 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.
HUBB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.98% yearly.
HUBB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
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 Year6.62%
Revenue Next 2Y5.86%
Revenue Next 3Y5.6%
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
A Price/Earnings ratio of 27.89 indicates a quite 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 75.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. HUBB is around the same levels.
Based on the Price/Forward Earnings ratio of 24.92, the valuation of HUBB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
HUBB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 24.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 73.63% of the companies are valued more expensively.
76.92% 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 | 33.11 | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HUBB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)1.75
EPS Next 2Y8.61%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.22%.
Compared to an average industry Dividend Yield of 3.40, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of HUBB is nicely growing with an annual growth rate of 7.77%!
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.
The dividend of HUBB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.91%
EPS Next 2Y8.61%
EPS Next 3Y8.32%
HUBBELL INC
NYSE:HUBB (1/21/2025, 8:06:15 PM)
After market: 450.38 0 (0%)450.38
+13 (+2.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change-3.23%
Ins Owners0.33%
Ins Owner Change-0.02%
Market Cap24.17B
Analysts74.29
Price Target479.59 (6.49%)
Short Float %3.86%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend4.57
Dividend Growth(5Y)7.77%
DP34.91%
Div Incr Years17
Div Non Decr Years34
Ex-DateN/A
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)1.31%
PT rev (3m)12.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 24.92 | ||
| P/S | 4.29 | ||
| P/FCF | 33.11 | ||
| P/OCF | 26.73 | ||
| P/B | 7.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.42 |
EPS(TTM)16.15
EY3.59%
EPS(NY)18.07
Fwd EY4.01%
FCF(TTM)13.6
FCFY3.02%
OCF(TTM)16.85
OCFY3.74%
SpS105.09
BVpS59.9
TBVpS-7.77
PEG (NY)2.88
PEG (5Y)1.75
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 | 5.98 |
F-Score5
WACC10.58%
ROIC/WACC1.36
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 Year6.62%
Revenue Next 2Y5.86%
Revenue Next 3Y5.6%
Revenue Next 5Y7.6%
EBIT growth 1Y8.41%
EBIT growth 3Y26.56%
EBIT growth 5Y11.01%
EBIT Next Year18.46%
EBIT Next 3Y11.02%
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%