HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - US4435106079 - Common Stock
437.16 USD
+8.36 (+1.95%)
437.16 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HUBB. HUBB was compared to 92 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 would make HUBB suitable 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.
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 (11.59%) than 95.65% of its industry peers.
HUBB has a better Return On Equity (23.76%) than 93.48% of its industry peers.
With an excellent Return On Invested Capital value of 15.81%, HUBB belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 9.86%.
The last Return On Invested Capital (15.81%) for HUBB is above the 3 year average (14.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 23.76% | ||
| ROIC | 15.81% |
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 14.73%, HUBB belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
In the last couple of years the Profit Margin of HUBB has grown nicely.
With an excellent Operating Margin value of 20.35%, HUBB belongs to the best of the industry, outperforming 97.83% 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 34.80% is fine compared to the rest of the industry. HUBB outperforms 78.26% of its industry peers.
In the last couple of years the Gross Margin of HUBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.35% | ||
| PM (TTM) | 14.73% | ||
| GM | 34.8% |
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) well above the Cost of Capital (WACC), HUBB is creating 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.
HUBB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.97 indicates that HUBB is not in any danger for bankruptcy at the moment.
HUBB's Altman-Z score of 5.97 is amongst the best of the industry. HUBB outperforms 88.04% 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 Debt to FCF ratio of 2.35. This is amongst the best in the industry. HUBB outperforms 84.78% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that HUBB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, HUBB is in line with its industry, outperforming 48.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 5.97 |
ROIC/WACC1.87
WACC8.46%
2.3 Liquidity
HUBB has a Current Ratio of 1.30. This is a normal value and indicates that HUBB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.30, HUBB is doing worse than 60.87% of the companies in the same industry.
HUBB has a Quick Ratio of 1.30. 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 (0.76) is worse than 66.30% 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 | 1.3 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.03% 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 0.95% in the last year.
Measured over the past years, HUBB shows a small growth in Revenue. The Revenue has been growing by 7.36% on average per year.
EPS 1Y (TTM)9.03%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%12.81%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%2.19%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y9.77%
EPS Next 2Y9.22%
EPS Next 3Y8.07%
EPS Next 5Y8.34%
Revenue Next Year3.18%
Revenue Next 2Y4.44%
Revenue Next 3Y4.55%
Revenue Next 5Y5.33%
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 25.69, HUBB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HUBB is valued a bit cheaper than 78.26% of the companies in the same industry.
HUBB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
HUBB is valuated rather expensively with a Price/Forward Earnings ratio of 22.13.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than 79.35% of the companies in the same industry.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 22.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than 77.17% 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 76.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 18.07 |
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.
HUBB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)1.68
EPS Next 2Y9.22%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, 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 3.36. HUBB pays more dividend than 90.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of HUBB grows each year by 7.79%, which is quite nice.
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 33.45% 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.
DP33.45%
EPS Next 2Y9.22%
EPS Next 3Y8.07%
437.16
+8.36 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.43%
Inst Owner Change0.61%
Ins Owners0.39%
Ins Owner Change2.12%
Market Cap23.23B
Analysts74.29
Price Target465.32 (6.44%)
Short Float %4.44%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP33.45%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.85%
Min EPS beat(2)-7.85%
Max EPS beat(2)9.55%
EPS beat(4)1
Avg EPS beat(4)0.13%
Min EPS beat(4)-7.85%
Max EPS beat(4)9.55%
EPS beat(8)3
Avg EPS beat(8)-0.26%
EPS beat(12)7
Avg EPS beat(12)4.98%
EPS beat(16)9
Avg EPS beat(16)4.78%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-3.37%
Revenue beat(8)1
Avg Revenue beat(8)-3.44%
Revenue beat(12)3
Avg Revenue beat(12)-2.46%
Revenue beat(16)5
Avg Revenue beat(16)-4.95%
PT rev (1m)6.44%
PT rev (3m)10.13%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)2.16%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 22.13 | ||
| P/S | 4.13 | ||
| P/FCF | 29.58 | ||
| P/OCF | 24.26 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.07 |
EPS(TTM)17.02
EY3.89%
EPS(NY)19.75
Fwd EY4.52%
FCF(TTM)14.78
FCFY3.38%
OCF(TTM)18.02
OCFY4.12%
SpS105.88
BVpS65.63
TBVpS-2.64
PEG (NY)2.63
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 23.76% | ||
| ROCE | 21.84% | ||
| ROIC | 15.81% | ||
| ROICexc | 17.01% | ||
| ROICexgc | 55.2% | ||
| OM | 20.35% | ||
| PM (TTM) | 14.73% | ||
| GM | 34.8% | ||
| FCFM | 13.96% |
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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 87.01% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 94.75% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 5.97 |
F-Score7
WACC8.46%
ROIC/WACC1.87
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)9.03%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%12.81%
EPS Next Y9.77%
EPS Next 2Y9.22%
EPS Next 3Y8.07%
EPS Next 5Y8.34%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%2.19%
Revenue Next Year3.18%
Revenue Next 2Y4.44%
Revenue Next 3Y4.55%
Revenue Next 5Y5.33%
EBIT growth 1Y9.61%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.29%
EBIT Next 3Y10.68%
EBIT Next 5Y9.2%
FCF growth 1Y22.93%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y20.41%
OCF growth 3Y22.15%
OCF growth 5Y10.87%