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 95 industry peers in the Electrical Equipment industry. HUBB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HUBB has a decent growth rate and is not valued too expensively. HUBB also has an excellent dividend rating. With these ratings, HUBB could be worth investigating further 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.
In the past 5 years HUBB has always been profitable.
In the past 5 years HUBB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HUBB (11.53%) is better than 95.79% of its industry peers.
HUBB has a Return On Equity of 24.47%. This is amongst the best in the industry. HUBB outperforms 93.68% of its industry peers.
HUBB's Return On Invested Capital of 16.04% is amongst the best of the industry. HUBB outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 10.08%.
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
With an excellent Profit Margin value of 14.27%, HUBB belongs to the best of the industry, outperforming 92.63% of the companies in the same industry.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB has a better Operating Margin (19.87%) than 97.89% of its industry peers.
HUBB's Operating Margin has improved in the last couple of years.
HUBB's Gross Margin of 34.21% is fine compared to the rest of the industry. HUBB outperforms 77.89% of its industry peers.
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
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.
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 5.48. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
HUBB's Altman-Z score of 5.48 is amongst the best of the industry. HUBB outperforms 87.37% of its industry peers.
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 better Debt to FCF ratio (2.41) than 78.95% 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 of 0.45. This is comparable to the rest of the industry: HUBB outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.85
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.17 indicates that HUBB should not have too much problems paying its short term obligations.
HUBB's Current ratio of 1.17 is on the low side compared to the rest of the industry. HUBB is outperformed by 68.42% of its industry peers.
HUBB has a Quick Ratio of 1.17. 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's Quick ratio of 0.73 is on the low side compared to the rest of the industry. HUBB is outperformed by 69.47% 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 | 1.17 | ||
| 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%.
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 1.97%.
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)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 8.74% on average per year.
HUBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y7.4%
EPS Next 2Y8.33%
EPS Next 3Y7.06%
EPS Next 5Y8.74%
Revenue Next Year4.16%
Revenue Next 2Y4.99%
Revenue Next 3Y4.52%
Revenue Next 5Y5.42%
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
With a Price/Earnings ratio of 23.20, HUBB is valued on the expensive side.
Based on the Price/Earnings ratio, HUBB is valued a bit cheaper than the industry average as 75.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. HUBB is around the same levels.
With a Price/Forward Earnings ratio of 19.65, HUBB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HUBB is valued a bit cheaper than the industry average as 76.84% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HUBB to the average of the S&P500 Index (21.94), we can say HUBB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
HUBB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 75.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HUBB is valued a bit cheaper than 74.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 16.43 |
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)3.13
PEG (5Y)1.52
EPS Next 2Y8.33%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.57, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.53% of the companies listed 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 | 1.37% |
5.2 History
On average, the dividend of HUBB grows each year by 7.79%, which is quite nice.
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
HUBB pays out 34.14% of its income as dividend. This is a sustainable payout ratio.
HUBB's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.14%
EPS Next 2Y8.33%
EPS Next 3Y7.06%
381.91
-7.17 (-1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.6%
Ins Owners0.35%
Ins Owner Change6.75%
Market Cap20.46B
Analysts74.29
Price Target422.54 (10.64%)
Short Float %4.33%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)-8.09%
PT rev (3m)-11.2%
EPS NQ rev (1m)-5.95%
EPS NQ rev (3m)-6.54%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 19.65 | ||
| P/S | 3.66 | ||
| P/FCF | 26.56 | ||
| P/OCF | 21.85 | ||
| P/B | 6.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.43 |
EPS(TTM)16.46
EY4.31%
EPS(NY)19.43
Fwd EY5.09%
FCF(TTM)14.38
FCFY3.77%
OCF(TTM)17.48
OCFY4.58%
SpS104.44
BVpS60.88
TBVpS-7.06
PEG (NY)3.13
PEG (5Y)1.52
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 | 5.48 |
F-Score7
WACC8.65%
ROIC/WACC1.85
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 Y7.4%
EPS Next 2Y8.33%
EPS Next 3Y7.06%
EPS Next 5Y8.74%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
Revenue Next Year4.16%
Revenue Next 2Y4.99%
Revenue Next 3Y4.52%
Revenue Next 5Y5.42%
EBIT growth 1Y8.08%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.7%
EBIT Next 3Y10.2%
EBIT Next 5Y9.57%
FCF growth 1Y30.1%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y27.68%
OCF growth 3Y22.15%
OCF growth 5Y10.87%