HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
484.06 USD
+1.56 (+0.32%)
484.06 USD
0 (0%)
HUBB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. These ratings would make HUBB suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year HUBB was profitable.
- HUBB had a positive operating cash flow in the past year.
- Each year in the past 5 years HUBB has been profitable.
- HUBB had a positive operating cash flow in each of the past 5 years.
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.
- With an excellent Return On Equity value of 23.49%, HUBB belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.21%, HUBB belongs to the top of the industry, outperforming 95.60% 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 9.92%.
- 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
- HUBB has a Profit Margin of 15.21%. This is amongst the best in the industry. HUBB outperforms 90.11% of its industry peers.
- In the last couple of years the Profit Margin of HUBB has grown nicely.
- The Operating Margin of HUBB (20.68%) is better than 97.80% of its industry peers.
- HUBB's Operating Margin has improved in the last couple of years.
- HUBB has a better Gross Margin (35.31%) than 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HUBB is creating some value.
- Compared to 1 year ago, HUBB has about the same amount of shares outstanding.
- HUBB has less shares outstanding than it did 5 years ago.
- HUBB has a better debt/assets ratio than last year.
2.2 Solvency
- HUBB has an Altman-Z score of 6.15. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.15, HUBB belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
- HUBB has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as HUBB would need 2.35 years to pay back of all of its debts.
- HUBB has a better Debt to FCF ratio (2.35) than 86.81% of its industry peers.
- HUBB has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- HUBB has a Debt to Equity ratio (0.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.78
WACC8.54%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HUBB should not have too much problems paying its short term obligations.
- HUBB has a Current ratio (1.36) which is comparable to the rest of the industry.
- A Quick Ratio of 0.85 indicates that HUBB may have some problems paying its short term obligations.
- HUBB has a Quick ratio of 0.85. This is in the lower half of the industry: HUBB underperforms 62.64% of its industry peers.
- 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 | 1.36 | ||
| 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.
- 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 0.82% 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)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
- Based on estimates for the next years, HUBB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.68% on average per year.
- HUBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y11.91%
EPS Next 2Y10.28%
EPS Next 3Y9.12%
EPS Next 5Y8.68%
Revenue Next Year2.39%
Revenue Next 2Y5.07%
Revenue Next 3Y5.11%
Revenue Next 5Y5.52%
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
- HUBB is valuated quite expensively with a Price/Earnings ratio of 27.35.
- Based on the Price/Earnings ratio, HUBB is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.32. HUBB is around the same levels.
- A Price/Forward Earnings ratio of 24.04 indicates a rather expensive valuation of HUBB.
- Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
- HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 79.12% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HUBB is valued cheaper than 80.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.25 | ||
| EV/EBITDA | 19.27 |
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)2.3
PEG (5Y)1.79
EPS Next 2Y10.28%
EPS Next 3Y9.12%
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.
- Compared to the average S&P500 Dividend Yield of 1.83, HUBB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
- The dividend of HUBB is nicely growing with an annual growth rate of 7.79%!
- 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
- 32.59% 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.
DP32.59%
EPS Next 2Y10.28%
EPS Next 3Y9.12%
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 4 / 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%.