HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock - Currency: USD
Taking everything into account, HUBB scores 7 out of 10 in our fundamental rating. HUBB was compared to 93 industry peers in the Electrical Equipment industry. HUBB gets an excellent profitability rating and is at the same time showing great financial health properties. HUBB has a decent growth rate and is not valued too expensively. HUBB also has an excellent dividend rating. These ratings could make HUBB a good candidate 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.
In the past 5 years HUBB has always been profitable.
Each year in the past 5 years HUBB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HUBB (11.59%) is better than 94.62% of its industry peers.
The Return On Equity of HUBB (23.76%) is better than 93.55% of its industry peers.
With an excellent Return On Invested Capital value of 15.81%, HUBB belongs to the best of the industry, outperforming 95.70% of the companies in the same industry.
HUBB had an Average Return On Invested Capital over the past 3 years of 14.28%. This is above the industry average of 9.56%.
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
HUBB's Profit Margin of 14.73% is amongst the best of the industry. HUBB outperforms 90.32% of its industry peers.
HUBB's Profit Margin has improved in the last couple of years.
HUBB has a Operating Margin of 20.35%. This is amongst the best in the industry. HUBB outperforms 97.85% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
With an excellent Gross Margin value of 34.80%, HUBB belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
HUBB's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for HUBB has been reduced compared to 5 years ago.
HUBB has a better debt/assets ratio than last year.
2.2 Solvency
HUBB has an Altman-Z score of 5.99. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
HUBB has a Altman-Z score of 5.99. This is amongst the best in the industry. HUBB outperforms 88.17% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.35, HUBB belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that HUBB is not too dependend on debt financing.
HUBB has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 5.99 |
ROIC/WACC1.86
WACC8.52%
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 62.37% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that HUBB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, HUBB is doing worse than 64.52% of the companies in the same industry.
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 | 1.3 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.03% over the past year.
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 0.95% 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
Based on estimates for the next years, HUBB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.34% on average per year.
HUBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y7.45%
EPS Next 2Y8.31%
EPS Next 3Y7.73%
EPS Next 5Y8.34%
Revenue Next Year3.8%
Revenue Next 2Y4.8%
Revenue Next 3Y4.61%
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
The Price/Earnings ratio is 25.13, which means the current valuation is very expensive for HUBB.
Based on the Price/Earnings ratio, HUBB is valued a bit cheaper than 77.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of HUBB to the average of the S&P500 Index (26.87), we can say HUBB is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.01, HUBB is valued on the expensive side.
79.57% of the companies in the same industry are more expensive than HUBB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HUBB to the average of the S&P500 Index (35.34), we can say HUBB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 79.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.06 | ||
| EV/EBITDA | 18.16 |
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)3.37
PEG (5Y)1.64
EPS Next 2Y8.31%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.87, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
33.45% of the earnings are spent on dividend by HUBB. This is a low number and 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 2Y8.31%
EPS Next 3Y7.73%
427.65
-10.02 (-2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.43%
Inst Owner Change1.37%
Ins Owners0.39%
Ins Owner Change7.47%
Market Cap22.82B
Analysts74.29
Price Target465.32 (8.81%)
Short Float %5.08%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)8.77%
PT rev (3m)10.13%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-1.25%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.01 | ||
| P/S | 4.06 | ||
| P/FCF | 29.06 | ||
| P/OCF | 23.84 | ||
| P/B | 6.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.16 |
EPS(TTM)17.02
EY3.98%
EPS(NY)19.43
Fwd EY4.54%
FCF(TTM)14.71
FCFY3.44%
OCF(TTM)17.94
OCFY4.19%
SpS105.42
BVpS65.35
TBVpS-2.63
PEG (NY)3.37
PEG (5Y)1.64
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 | 5.99 |
F-Score7
WACC8.52%
ROIC/WACC1.86
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 Y7.45%
EPS Next 2Y8.31%
EPS Next 3Y7.73%
EPS Next 5Y8.34%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%2.19%
Revenue Next Year3.8%
Revenue Next 2Y4.8%
Revenue Next 3Y4.61%
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%