HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUBB - US4435106079 - Common Stock
444.11 USD
-2.5 (-0.56%)
444.11 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. HUBB gets an excellent profitability rating and is at the same time showing great financial health properties. HUBB has a correct valuation and a medium growth rate. Finally 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.
Each year in the past 5 years HUBB has been profitable.
In the past 5 years HUBB always reported a positive cash flow from operatings.
1.2 Ratios
HUBB has a better Return On Assets (11.49%) than 93.41% of its industry peers.
HUBB has a better Return On Equity (23.49%) than 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 9.90%.
The 3 year average ROIC (14.28%) for HUBB is below the current ROIC(15.21%), indicating increased profibility in the last year.
| 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 Profit Margin of 15.21%. This is amongst the best in the industry. HUBB outperforms 90.11% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
With an excellent Operating Margin value of 20.68%, HUBB belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
HUBB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.31%, HUBB is in the better half of the industry, outperforming 78.02% 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.
The number of shares outstanding for HUBB remains at a similar level compared to 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
HUBB has an Altman-Z score of 5.82. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
HUBB has a Altman-Z score of 5.82. This is amongst the best in the industry. HUBB outperforms 86.81% 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.
Looking at the Debt to FCF ratio, with a value of 2.35, HUBB belongs to the top of the industry, outperforming 86.81% 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.
HUBB has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.8
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HUBB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, HUBB perfoms like the industry average, outperforming 40.66% of the companies in the same industry.
HUBB has a Quick Ratio of 1.36. This is a bad value and indicates that HUBB is not financially healthy enough and could expect problems in meeting 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.
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 | 1.36 | ||
| 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.
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.
Looking at the last year, HUBB shows a small growth in Revenue. The Revenue has grown by 0.82% 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)9.6%
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
The Earnings Per Share is expected to grow by 8.68% on average over the next years. This is quite good.
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 Y11.91%
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.09, the valuation of HUBB can be described as expensive.
Based on the Price/Earnings ratio, HUBB is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, HUBB is valued at the same level.
HUBB is valuated rather expensively with a Price/Forward Earnings ratio of 22.05.
75.82% 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 (23.13), we can say HUBB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 22.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
HUBB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 78.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.75 | ||
| EV/EBITDA | 17.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HUBB may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)1.64
EPS Next 2Y10.28%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
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.
HUBB's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 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
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 2Y10.28%
EPS Next 3Y9.12%
444.11
-2.5 (-0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.58%
Inst Owner Change1.98%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap23.60B
Revenue(TTM)5.69B
Net Income(TTM)864.90M
Analysts75.24
Price Target488.2 (9.93%)
Short Float %4.88%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)-0.61%
PT rev (3m)3.89%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)0.45%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 22.05 | ||
| P/S | 4.15 | ||
| P/FCF | 27.75 | ||
| P/OCF | 23.26 | ||
| P/B | 6.41 | ||
| P/tB | 723.93 | ||
| EV/EBITDA | 17.72 |
EPS(TTM)17.7
EY3.99%
EPS(NY)20.14
Fwd EY4.53%
FCF(TTM)16
FCFY3.6%
OCF(TTM)19.09
OCFY4.3%
SpS107
BVpS69.28
TBVpS0.61
PEG (NY)2.11
PEG (5Y)1.64
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 | 5.82 |
F-Score7
WACC8.43%
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%.