HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
470.53 USD
+9.66 (+2.1%)
470.53 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HUBB. HUBB was compared to 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 is not valued too expensively and it also shows a decent 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
HUBB had positive earnings in the past year.
HUBB had a positive operating cash flow in the past year.
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 11.49%, HUBB belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
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.
The Return On Invested Capital of HUBB (15.21%) is better than 95.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of HUBB (15.21%) is better than 90.11% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB's Operating Margin of 20.68% is amongst the best of the industry. HUBB outperforms 97.80% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
HUBB has a Gross Margin of 35.31%. This is in the better half of the industry: HUBB outperforms 78.02% of its industry peers.
In the last couple of years the Gross Margin of HUBB has grown nicely.
| 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 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.
HUBB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HUBB has an improved debt to assets ratio.
2.2 Solvency
HUBB has an Altman-Z score of 6.03. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.03, HUBB belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
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.
The Debt to FCF ratio of HUBB (2.35) is better 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.
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 | 6.03 |
ROIC/WACC1.8
WACC8.45%
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 in line with its industry peers.
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.
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
The Earnings Per Share has grown by an nice 9.60% over the past year.
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%.
The Revenue has been growing slightly by 7.36% on average over the past years.
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 Year2.41%
Revenue Next 2Y5.07%
Revenue Next 3Y5.12%
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
With a Price/Earnings ratio of 26.58, HUBB can be considered very expensive at the moment.
79.12% of the companies in the same industry are more expensive than HUBB, based on the Price/Earnings ratio.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.37, which indicates a rather expensive current valuation of HUBB.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.92. HUBB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
HUBB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 78.02% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 79.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.41 | ||
| EV/EBITDA | 18.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HUBB does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HUBB may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)1.74
EPS Next 2Y10.28%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.23%.
HUBB's Dividend Yield is rather good when compared to the industry average which is at 0.27. HUBB pays more dividend than 91.21% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, HUBB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 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 32.59% of its income as dividend. This is a 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%
470.53
+9.66 (+2.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.62%
Inst Owner Change0.05%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap25.00B
Revenue(TTM)5.69B
Net Income(TTM)864.90M
Analysts75.45
Price Target488.2 (3.76%)
Short Float %4.88%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP32.59%
Div Incr Years17
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.68%
Min EPS beat(2)1.81%
Max EPS beat(2)9.55%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-7.85%
Max EPS beat(4)9.55%
EPS beat(8)4
Avg EPS beat(8)0.53%
EPS beat(12)7
Avg EPS beat(12)4.77%
EPS beat(16)10
Avg EPS beat(16)5.28%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.63%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-3.37%
Revenue beat(8)1
Avg Revenue beat(8)-3.52%
Revenue beat(12)2
Avg Revenue beat(12)-3.05%
Revenue beat(16)5
Avg Revenue beat(16)-4.3%
PT rev (1m)-0.06%
PT rev (3m)3.89%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 23.37 | ||
| P/S | 4.4 | ||
| P/FCF | 29.41 | ||
| P/OCF | 24.64 | ||
| P/B | 6.79 | ||
| P/tB | 766.99 | ||
| EV/EBITDA | 18.74 |
EPS(TTM)17.7
EY3.76%
EPS(NY)20.14
Fwd EY4.28%
FCF(TTM)16
FCFY3.4%
OCF(TTM)19.09
OCFY4.06%
SpS107
BVpS69.28
TBVpS0.61
PEG (NY)2.23
PEG (5Y)1.74
Graham Number166.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.49% | ||
| ROE | 23.49% | ||
| ROCE | 21.49% | ||
| ROIC | 15.21% | ||
| ROICexc | 17.15% | ||
| ROICexgc | 54.07% | ||
| OM | 20.68% | ||
| PM (TTM) | 15.21% | ||
| GM | 35.31% | ||
| FCFM | 14.95% |
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%
ROICexgc growth 3Y20.93%
ROICexgc 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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 83.07% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.86% | ||
| Profit Quality | 98.31% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 6.03 |
F-Score7
WACC8.45%
ROIC/WACC1.8
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)9.6%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%15.14%
EPS Next Y11.91%
EPS Next 2Y10.28%
EPS Next 3Y9.12%
EPS Next 5Y8.68%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%4.15%
Revenue Next Year2.41%
Revenue Next 2Y5.07%
Revenue Next 3Y5.12%
Revenue Next 5Y5.52%
EBIT growth 1Y9.69%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year19.7%
EBIT Next 3Y11.71%
EBIT Next 5Y9.54%
FCF growth 1Y39.65%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y30.96%
OCF growth 3Y22.15%
OCF growth 5Y10.87%
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%.