HUBBELL INC (HUBB) Stock Fundamental Analysis
USA - NYSE:HUBB - US4435106079 - Common Stock
469.96 USD
-2.61 (-0.55%)
469.96 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 has a correct valuation and a medium growth rate. 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.
In the past year HUBB had a positive cash flow from operations.
In the past 5 years HUBB has always been profitable.
HUBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HUBB (11.59%) is better than 95.65% of its industry peers.
The Return On Equity of HUBB (23.76%) is better than 93.48% of its industry peers.
HUBB has a better Return On Invested Capital (15.81%) than 92.39% of its industry peers.
HUBB had an Average Return On Invested Capital over the past 3 years of 14.28%. This is above the industry average of 10.22%.
The 3 year average ROIC (14.28%) for HUBB is below the current ROIC(15.81%), indicating increased profibility in the last year.
| 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
The Profit Margin of HUBB (14.73%) is better than 89.13% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB has a better Operating Margin (20.35%) than 97.83% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
The Gross Margin of HUBB (34.80%) is better than 79.35% 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
HUBB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for HUBB remains at a similar level compared to 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 6.27. 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 6.27, HUBB belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
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 85.87% of the companies in the same industry.
HUBB has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, HUBB is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 6.27 |
ROIC/WACC1.89
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.30 indicates that HUBB should not have too much problems paying its short term obligations.
HUBB has a worse Current ratio (1.30) than 60.87% of its industry peers.
A Quick Ratio of 0.76 indicates that HUBB may have some problems paying 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
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.
HUBB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.76%.
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)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%4.15%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% 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 5.33% on average per year.
EPS Next Y10.27%
EPS Next 2Y9.6%
EPS Next 3Y8.03%
EPS Next 5Y8.34%
Revenue Next Year2.92%
Revenue Next 2Y4.65%
Revenue Next 3Y4.84%
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
HUBB is valuated quite expensively with a Price/Earnings ratio of 26.55.
HUBB's Price/Earnings ratio is rather cheap when compared to the industry. HUBB is cheaper than 80.43% of the companies in the same industry.
HUBB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.19.
The Price/Forward Earnings ratio is 23.63, which indicates a rather expensive current valuation of HUBB.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than 76.09% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. HUBB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 23.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBB is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HUBB is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.8 | ||
| EV/EBITDA | 19.47 |
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)2.58
PEG (5Y)1.74
EPS Next 2Y9.6%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, 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 3.04. HUBB pays more dividend than 90.22% of the companies in the same industry.
With a Dividend Yield of 1.20, HUBB pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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 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 2Y9.6%
EPS Next 3Y8.03%
469.96
-2.61 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.93%
Inst Owner Change0.27%
Ins Owners0.39%
Ins Owner Change2.2%
Market Cap24.97B
Revenue(TTM)5.63B
Net Income(TTM)828.80M
Analysts75.24
Price Target470.73 (0.16%)
Short Float %3.81%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)0%
PT rev (3m)7.49%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 23.63 | ||
| P/S | 4.44 | ||
| P/FCF | 31.8 | ||
| P/OCF | 26.08 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.47 |
EPS(TTM)17.7
EY3.77%
EPS(NY)19.89
Fwd EY4.23%
FCF(TTM)14.78
FCFY3.14%
OCF(TTM)18.02
OCFY3.83%
SpS105.88
BVpS65.63
TBVpS-2.64
PEG (NY)2.58
PEG (5Y)1.74
Graham Number161.67
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%
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 Turnover0.79
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 | 6.27 |
F-Score7
WACC8.36%
ROIC/WACC1.89
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 Y10.27%
EPS Next 2Y9.6%
EPS Next 3Y8.03%
EPS Next 5Y8.34%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%4.15%
Revenue Next Year2.92%
Revenue Next 2Y4.65%
Revenue Next 3Y4.84%
Revenue Next 5Y5.33%
EBIT growth 1Y9.61%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.95%
EBIT Next 3Y9.7%
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%
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 5 / 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 10.27% 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 33.45%.