HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
429.82 USD
+5.74 (+1.35%)
429.82 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HUBB. HUBB was compared to 90 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. Finally 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.
HUBB had positive earnings in each of the past 5 years.
HUBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.49%, HUBB belongs to the top of the industry, outperforming 93.33% 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 93.33% of its industry peers.
With an excellent Return On Invested Capital value of 15.21%, HUBB belongs to the best of the industry, outperforming 92.22% 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 10.41%.
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 better Profit Margin (15.21%) than 90.00% of its industry peers.
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 97.78% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
With a decent Gross Margin value of 35.31%, HUBB is doing good in the industry, outperforming 78.89% of the companies in the same industry.
HUBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.68% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for HUBB has been reduced compared to a year ago.
2.2 Solvency
HUBB has an Altman-Z score of 5.70. 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 5.70, HUBB belongs to the top of the industry, outperforming 82.22% 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.
Looking at the Debt to FCF ratio, with a value of 2.35, HUBB belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
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 48.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.83
WACC8.29%
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.
With a Current ratio value of 1.36, HUBB perfoms like the industry average, outperforming 41.11% of the companies in the same 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 63.33% 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.
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 0.82% 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
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 Y11.41%
EPS Next 2Y10.1%
EPS Next 3Y8.74%
EPS Next 5Y8.68%
Revenue Next Year2.65%
Revenue Next 2Y5.01%
Revenue Next 3Y4.97%
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
The Price/Earnings ratio is 24.28, which indicates a rather expensive current valuation of HUBB.
80.00% of the companies in the same industry are more expensive than HUBB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.98. HUBB is around the same levels.
Based on the Price/Forward Earnings ratio of 21.41, the valuation of HUBB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than 74.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HUBB to the average of the S&P500 Index (35.79), we can say HUBB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 76.67% 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 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.86 | ||
| EV/EBITDA | 17.17 |
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)2.13
PEG (5Y)1.59
EPS Next 2Y10.1%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 3.49, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.00% of the companies listed in the same industry.
With a Dividend Yield of 1.39, HUBB pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 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
32.59% 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.
DP32.59%
EPS Next 2Y10.1%
EPS Next 3Y8.74%
429.82
+5.74 (+1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.93%
Inst Owner Change1.96%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap22.84B
Revenue(TTM)5.69B
Net Income(TTM)864.90M
Analysts75.24
Price Target491.2 (14.28%)
Short Float %3.98%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP32.59%
Div Incr Years17
Div Non Decr Years34
Ex-Date
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)4.53%
PT rev (3m)5.56%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 21.41 | ||
| P/S | 4.02 | ||
| P/FCF | 26.86 | ||
| P/OCF | 22.51 | ||
| P/B | 6.2 | ||
| P/tB | 700.63 | ||
| EV/EBITDA | 17.17 |
EPS(TTM)17.7
EY4.12%
EPS(NY)20.08
Fwd EY4.67%
FCF(TTM)16
FCFY3.72%
OCF(TTM)19.09
OCFY4.44%
SpS107
BVpS69.28
TBVpS0.61
PEG (NY)2.13
PEG (5Y)1.59
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 | 5.7 |
F-Score7
WACC8.29%
ROIC/WACC1.83
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 Y11.41%
EPS Next 2Y10.1%
EPS Next 3Y8.74%
EPS Next 5Y8.68%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%4.15%
Revenue Next Year2.65%
Revenue Next 2Y5.01%
Revenue Next 3Y4.97%
Revenue Next 5Y5.52%
EBIT growth 1Y9.69%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.95%
EBIT Next 3Y9.7%
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 of HUBBELL INC (HUBB) stock?
ChartMill assigns a valuation rating of 4 / 10 to HUBBELL INC (HUBB). This can be considered as Fairly Valued.
Can you provide the profitability details for HUBBELL INC?
HUBBELL INC (HUBB) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for HUBB stock?
The Earnings per Share (EPS) of HUBBELL INC (HUBB) is expected to grow by 11.41% in the next year.
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%.