HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
486.82 USD
+1.29 (+0.27%)
486.82 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 has a correct valuation and a medium growth rate. 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.
- 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'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 Return On Equity of 23.49%. This is amongst the best in the industry. HUBB outperforms 93.41% of its industry peers.
- HUBB has a Return On Invested Capital of 15.21%. This is amongst the best in the industry. HUBB outperforms 95.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HUBB is above the industry average of 9.92%.
- 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
- With an excellent Profit Margin value of 15.21%, HUBB belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of HUBB has grown nicely.
- HUBB has a Operating Margin of 20.68%. This is amongst the best in the industry. HUBB outperforms 97.80% of its industry peers.
- HUBB's Operating Margin has improved in the last couple of years.
- HUBB's Gross Margin of 35.31% is fine compared to the rest of the industry. HUBB outperforms 78.02% of its industry peers.
- HUBB's Gross Margin has improved in the last couple of years.
| 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.
- The debt/assets ratio for HUBB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.16 indicates that HUBB is not in any danger for bankruptcy at the moment.
- HUBB has a better Altman-Z score (6.16) than 81.32% of its industry peers.
- The Debt to FCF ratio of HUBB is 2.35, which is a good value as it means it would take HUBB, 2.35 years of fcf income to pay off all of its debts.
- HUBB has a better Debt to FCF ratio (2.35) than 86.81% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that HUBB is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.43, HUBB is in line with its industry, outperforming 52.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.79
WACC8.52%
2.3 Liquidity
- HUBB has a Current Ratio of 1.36. 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 (1.36) is comparable to the rest of the industry.
- HUBB has a Quick Ratio of 1.36. 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 has a worse Quick ratio (0.85) than 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.
- 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.
- HUBB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
- HUBB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.36% yearly.
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
- HUBB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.68% yearly.
- Based on estimates for the next years, HUBB will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
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.
- 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
- With a Price/Earnings ratio of 27.50, HUBB can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of HUBB indicates a rather cheap valuation: HUBB is cheaper than 81.32% 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 27.25.
- HUBB is valuated rather expensively with a Price/Forward Earnings ratio of 24.09.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 78.02% of the companies listed in the same industry.
- HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 24.09 |
4.2 Price Multiples
- 79.12% of the companies in the same industry are more expensive than HUBB, based on the Enterprise Value to EBITDA ratio.
- 80.22% 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 | 30.42 | ||
| EV/EBITDA | 19.32 |
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)2.28
PEG (5Y)1.8
EPS Next 2Y10.47%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.17%, HUBB has a reasonable but not impressive dividend return.
- HUBB's Dividend Yield is rather good when compared to the industry average which is at 0.26. HUBB pays more dividend than 91.21% of the companies in the same industry.
- HUBB's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 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
- HUBB pays out 32.59% 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.
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%.