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HUBBELL INC (HUBB)

US4435106079 - Common Stock

379.89  +6.95 (+1.86%)

After market: 379.89 0 (0%)

Fundamental Rating

6

Taking everything into account, HUBB scores 6 out of 10 in our fundamental rating. HUBB was compared to 86 industry peers in the Electrical Equipment industry. While HUBB has a great profitability rating, there are some minor concerns on its financial health. HUBB has a correct valuation and a medium growth rate. Finally HUBB also has an excellent dividend rating.



9

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.
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

Looking at the Return On Assets, with a value of 10.55%, HUBB belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.71%, HUBB belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
HUBB's Return On Invested Capital of 14.62% is amongst the best of the industry. HUBB outperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 10.34%.
The last Return On Invested Capital (14.62%) for HUBB is above the 3 year average (12.44%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.55%
ROE 24.71%
ROIC 14.62%
ROA(3y)9.53%
ROA(5y)8.72%
ROE(3y)22.42%
ROE(5y)20.94%
ROIC(3y)12.44%
ROIC(5y)11.47%

1.3 Margins

The Profit Margin of HUBB (13.20%) is better than 89.29% 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 18.77%, HUBB belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Operating Margin of HUBB has grown nicely.
The Gross Margin of HUBB (34.57%) is better than 77.38% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 18.77%
PM (TTM) 13.2%
GM 34.57%
OM growth 3Y11.59%
OM growth 5Y7.06%
PM growth 3Y14.07%
PM growth 5Y11.99%
GM growth 3Y5.58%
GM growth 5Y3.36%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HUBB is still creating some 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
The debt/assets ratio for HUBB is higher compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of HUBB is 3.08, which is a good value as it means it would take HUBB, 3.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.08, HUBB belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that HUBB is somewhat dependend on debt financing.
HUBB has a worse Debt to Equity ratio (0.65) than 65.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 3.08
Altman-Z N/A
ROIC/WACC1.42
WACC10.33%

2.3 Liquidity

A Current Ratio of 1.66 indicates that HUBB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, HUBB is doing worse than 60.71% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that HUBB should not have too much problems paying its short term obligations.
The Quick ratio of HUBB (1.03) is worse than 63.10% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.03

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.66% over the past year.
Measured over the past years, HUBB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.98% on average per year.
HUBB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
Measured over the past years, HUBB shows a small growth in Revenue. The Revenue has been growing by 3.69% on average per year.
EPS 1Y (TTM)28.66%
EPS 3Y26.49%
EPS 5Y15.98%
EPS growth Q2Q-0.28%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y13.42%
Revenue growth 5Y3.69%
Revenue growth Q2Q8.85%

3.2 Future

HUBB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
HUBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y9.28%
EPS Next 2Y8.21%
EPS Next 3Y7.57%
EPS Next 5Y10.79%
Revenue Next Year10.05%
Revenue Next 2Y7.35%
Revenue Next 3Y6.68%
Revenue Next 5Y6.61%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.81, which indicates a rather expensive current valuation of HUBB.
71.43% of the companies in the same industry are more expensive than HUBB, based on the Price/Earnings ratio.
HUBB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 21.18 indicates a rather expensive valuation of HUBB.
73.81% of the companies in the same industry are more expensive than HUBB, based on the Price/Forward Earnings ratio.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.81
Fwd PE 21.18

4.2 Price Multiples

71.43% of the companies in the same industry are more expensive than HUBB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.7
EV/EBITDA 18.05

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)2.67
PEG (5Y)1.55
EPS Next 2Y8.21%
EPS Next 3Y7.57%

7

5. Dividend

5.1 Amount

HUBB has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.46, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.48% of the companies listed in the same industry.
With a Dividend Yield of 1.31, HUBB pays less dividend than the S&P500 average, which is at 2.41.
Industry RankSector Rank
Dividend Yield 1.31%

5.2 History

On average, the dividend of HUBB grows each year by 7.77%, 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)7.77%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

34.67% of the earnings are spent on dividend by HUBB. This is a low number and sustainable payout ratio.
The dividend of HUBB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.67%
EPS Next 2Y8.21%
EPS Next 3Y7.57%

HUBBELL INC

NYSE:HUBB (5/3/2024, 7:04:00 PM)

After market: 379.89 0 (0%)

379.89

+6.95 (+1.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.39B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 24.81
Fwd PE 21.18
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.67
PEG (5Y)1.55
Profitability
Industry RankSector Rank
ROA 10.55%
ROE 24.71%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.77%
PM (TTM) 13.2%
GM 34.57%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.66
Quick Ratio 1.03
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28.66%
EPS 3Y26.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.06%
Revenue growth 3Y13.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y