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. Both the health and profitability get an excellent rating, making HUBB a very profitable company, without any liquidiy or solvency issues. HUBB has a decent growth rate and is not valued too expensively. Finally HUBB also has an excellent dividend rating. This makes HUBB very considerable 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.
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
HUBB's Return On Assets of 11.53% is amongst the best of the industry. HUBB outperforms 95.70% of its industry peers.
HUBB's Return On Equity of 24.47% is amongst the best of the industry. HUBB outperforms 93.55% of its industry peers.
HUBB has a better Return On Invested Capital (16.04%) than 95.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 9.89%.
The 3 year average ROIC (14.28%) for HUBB is below the current ROIC(16.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 24.47% | ||
| ROIC | 16.04% |
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 14.27%. This is amongst the best in the industry. HUBB outperforms 91.40% of its industry peers.
HUBB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.87%, HUBB belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
HUBB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 34.21%, HUBB is doing good in the industry, outperforming 79.57% of the companies in the same industry.
In the last couple of years the Gross Margin of HUBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 14.27% | ||
| GM | 34.21% |
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.
Compared to 5 years ago, HUBB has less shares outstanding
Compared to 1 year ago, HUBB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.95 indicates that HUBB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.95, HUBB belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
The Debt to FCF ratio of HUBB is 2.41, which is a good value as it means it would take HUBB, 2.41 years of fcf income to pay off all of its debts.
HUBB has a Debt to FCF ratio of 2.41. This is amongst the best in the industry. HUBB outperforms 81.72% of its industry peers.
HUBB has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
HUBB has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.86
WACC8.63%
2.3 Liquidity
HUBB has a Current Ratio of 1.17. This is a normal value and indicates that HUBB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HUBB (1.17) is worse than 65.59% of its industry peers.
A Quick Ratio of 0.73 indicates that HUBB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, HUBB is doing worse than 66.67% 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 | 1.17 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
HUBB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.51%.
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 1.97% 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)7.51%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%-2.78%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
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.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y7.45%
EPS Next 2Y8.31%
EPS Next 3Y7.73%
EPS Next 5Y8.34%
Revenue Next Year3.8%
Revenue Next 2Y4.79%
Revenue Next 3Y4.61%
Revenue Next 5Y5.33%
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
A Price/Earnings ratio of 26.58 indicates a quite expensive valuation of HUBB.
Compared to the rest of the industry, the Price/Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 77.42% of the companies listed in the same industry.
HUBB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.35.
HUBB is valuated rather expensively with a Price/Forward Earnings ratio of 22.52.
75.27% 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 (37.54), we can say HUBB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
78.49% of the companies in the same industry are more expensive than HUBB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.31 | ||
| EV/EBITDA | 18.64 |
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)3.57
PEG (5Y)1.74
EPS Next 2Y8.31%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.21%.
HUBB's Dividend Yield is rather good when compared to the industry average which is at 3.97. HUBB pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of HUBB grows each year by 7.79%, which is quite nice.
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
HUBB pays out 34.14% 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.
DP34.14%
EPS Next 2Y8.31%
EPS Next 3Y7.73%
437.5
+2.55 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change-0.04%
Ins Owners0.39%
Ins Owner Change6.6%
Market Cap23.35B
Analysts74
Price Target437.17 (-0.08%)
Short Float %4.86%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP34.14%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.93%
Min EPS beat(2)-7.85%
Max EPS beat(2)-0.02%
EPS beat(4)1
Avg EPS beat(4)-1.99%
Min EPS beat(4)-7.85%
Max EPS beat(4)1.07%
EPS beat(8)3
Avg EPS beat(8)-0.54%
EPS beat(12)7
Avg EPS beat(12)5.36%
EPS beat(16)9
Avg EPS beat(16)4.63%
Revenue beat(2)0
Avg Revenue beat(2)-5.6%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-3.93%
Revenue beat(4)0
Avg Revenue beat(4)-4.88%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-3.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.97%
Revenue beat(16)5
Avg Revenue beat(16)-5.46%
PT rev (1m)2.54%
PT rev (3m)-4.91%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 22.52 | ||
| P/S | 4.17 | ||
| P/FCF | 30.31 | ||
| P/OCF | 24.94 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.64 |
EPS(TTM)16.46
EY3.76%
EPS(NY)19.43
Fwd EY4.44%
FCF(TTM)14.43
FCFY3.3%
OCF(TTM)17.55
OCFY4.01%
SpS104.83
BVpS61.11
TBVpS-7.09
PEG (NY)3.57
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 24.47% | ||
| ROCE | 22.3% | ||
| ROIC | 16.04% | ||
| ROICexc | 17.18% | ||
| ROICexgc | 61.83% | ||
| OM | 19.87% | ||
| PM (TTM) | 14.27% | ||
| GM | 34.21% | ||
| FCFM | 13.77% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 83.51% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.46% | ||
| Profit Quality | 96.5% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 5.95 |
F-Score7
WACC8.63%
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)7.51%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%-2.78%
EPS Next Y7.45%
EPS Next 2Y8.31%
EPS Next 3Y7.73%
EPS Next 5Y8.34%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
Revenue Next Year3.8%
Revenue Next 2Y4.79%
Revenue Next 3Y4.61%
Revenue Next 5Y5.33%
EBIT growth 1Y8.08%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year16.46%
EBIT Next 3Y9.72%
EBIT Next 5Y9.2%
FCF growth 1Y30.1%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y27.68%
OCF growth 3Y22.15%
OCF growth 5Y10.87%