HUBBELL INC (HUBB) Stock Fundamental Analysis
NYSE:HUBB - New York Stock Exchange, Inc. - US4435106079 - Common Stock - Currency: USD
Overall HUBB gets a fundamental rating of 7 out of 10. We evaluated HUBB against 98 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. Finally HUBB also has an excellent dividend rating. These ratings would make HUBB suitable 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.
Each year in the past 5 years HUBB has been profitable.
HUBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HUBB has a better Return On Assets (11.62%) than 95.92% of its industry peers.
Looking at the Return On Equity, with a value of 23.75%, HUBB belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
The Return On Invested Capital of HUBB (15.56%) is better than 94.90% 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 9.63%.
The 3 year average ROIC (14.28%) for HUBB is below the current ROIC(15.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROIC | 15.56% |
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 13.79%, HUBB belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
In the last couple of years the Profit Margin of HUBB has grown nicely.
HUBB's Operating Margin of 19.62% is amongst the best of the industry. HUBB outperforms 97.96% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
The Gross Margin of HUBB (33.99%) is better than 78.57% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 13.79% | ||
| GM | 33.99% |
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.
Compared to 1 year ago, HUBB has an improved debt to assets ratio.
2.2 Solvency
HUBB has an Altman-Z score of 5.72. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.72, HUBB belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
HUBB has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
HUBB has a better Debt to FCF ratio (1.93) than 87.76% of its industry peers.
HUBB has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, HUBB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.87
WACC8.34%
2.3 Liquidity
HUBB has a Current Ratio of 1.64. This is a normal value and indicates that HUBB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.64, HUBB is in line with its industry, outperforming 48.98% of the companies in the same industry.
HUBB has a Quick Ratio of 1.64. 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 0.98. This is comparable to the rest of the industry: HUBB outperforms 40.82% 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 | 1.64 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
HUBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.09%, which is quite good.
HUBB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.29% yearly.
HUBB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.76%.
The Revenue has been growing slightly by 7.36% on average over the past years.
EPS 1Y (TTM)8.09%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-0.85%
3.2 Future
The Earnings Per Share is expected to grow by 8.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
EPS Next 5Y8.74%
Revenue Next Year2.63%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
Revenue Next 5Y5.42%
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
HUBB is valuated rather expensively with a Price/Earnings ratio of 20.72.
Based on the Price/Earnings ratio, HUBB is valued a bit cheaper than 75.51% of the companies in the same industry.
HUBB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.13 indicates a rather expensive valuation of HUBB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 74.49% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HUBB to the average of the S&P500 Index (20.77), we can say HUBB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.13 |
4.2 Price Multiples
HUBB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 76.53% of the companies in the same industry.
HUBB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 15.7 |
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)2.49
PEG (5Y)1.36
EPS Next 2Y8.24%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.47%. 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 4.55. HUBB pays more dividend than 90.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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
HUBB pays out 34.43% 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.
DP34.43%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
343.12
-20.06 (-5.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.39%
Ins Owners0.35%
Ins Owner Change4.65%
Market Cap18.38B
Analysts74.29
Price Target438.66 (27.84%)
Short Float %4.38%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend4.97
Dividend Growth(5Y)7.79%
DP34.43%
Div Incr Years17
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.58%
Min EPS beat(2)-1.15%
Max EPS beat(2)-0.02%
EPS beat(4)1
Avg EPS beat(4)-0.11%
Min EPS beat(4)-1.15%
Max EPS beat(4)1.07%
EPS beat(8)4
Avg EPS beat(8)5.82%
EPS beat(12)8
Avg EPS beat(12)7.04%
EPS beat(16)10
Avg EPS beat(16)5.27%
Revenue beat(2)0
Avg Revenue beat(2)-5.93%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-4.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.27%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)-1.47%
Revenue beat(8)2
Avg Revenue beat(8)-2.75%
Revenue beat(12)5
Avg Revenue beat(12)-1.23%
Revenue beat(16)5
Avg Revenue beat(16)-5.98%
PT rev (1m)-5.3%
PT rev (3m)-8.54%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.13 | ||
| P/S | 3.27 | ||
| P/FCF | 22.67 | ||
| P/OCF | 18.54 | ||
| P/B | 5.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.7 |
EPS(TTM)16.56
EY4.83%
EPS(NY)17.94
Fwd EY5.23%
FCF(TTM)15.14
FCFY4.41%
OCF(TTM)18.5
OCFY5.39%
SpS105.07
BVpS61.01
TBVpS-5.83
PEG (NY)2.49
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 23.75% | ||
| ROCE | 20.43% | ||
| ROIC | 15.56% | ||
| ROICexc | 16.6% | ||
| ROICexgc | 53.63% | ||
| OM | 19.62% | ||
| PM (TTM) | 13.79% | ||
| GM | 33.99% | ||
| FCFM | 14.41% |
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-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 85.05% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 13.21 | ||
| Cash Conversion | 75.29% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.72 |
F-Score8
WACC8.34%
ROIC/WACC1.87
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)8.09%
EPS 3Y25.44%
EPS 5Y15.29%
EPS Q2Q%11.11%
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y7.44%
EPS Next 5Y8.74%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-0.85%
Revenue Next Year2.63%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
Revenue Next 5Y5.42%
EBIT growth 1Y5.8%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year18.7%
EBIT Next 3Y10.2%
EBIT Next 5Y9.57%
FCF growth 1Y13.38%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y12.53%
OCF growth 3Y22.15%
OCF growth 5Y10.87%