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 94 industry peers in the Electrical Equipment industry. HUBB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HUBB is not valued too expensively and it also shows a decent 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
In the past year HUBB was profitable.
HUBB had a positive operating cash flow in the past year.
HUBB had positive earnings in each of the past 5 years.
In the past 5 years HUBB always reported a positive cash flow from operatings.
1.2 Ratios
HUBB's Return On Assets of 11.53% is amongst the best of the industry. HUBB outperforms 95.74% of its industry peers.
HUBB's Return On Equity of 24.47% is amongst the best of the industry. HUBB outperforms 93.62% of its industry peers.
HUBB has a Return On Invested Capital of 16.04%. This is amongst the best in the industry. HUBB outperforms 95.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HUBB is above the industry average of 9.89%.
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
HUBB has a Profit Margin of 14.27%. This is amongst the best in the industry. HUBB outperforms 91.49% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
Looking at the Operating Margin, with a value of 19.87%, HUBB belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
HUBB's Operating Margin has improved in the last couple of years.
HUBB has a Gross Margin of 34.21%. This is amongst the best in the industry. HUBB outperforms 80.85% of its industry peers.
HUBB's Gross Margin has improved in the last couple of years.
| 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 just above the Cost of Capital (WACC), which means it is creating some 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.
HUBB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.76 indicates that HUBB is not in any danger for bankruptcy at the moment.
HUBB's Altman-Z score of 5.76 is amongst the best of the industry. HUBB outperforms 86.17% of its industry peers.
HUBB has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as HUBB would need 2.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.41, HUBB belongs to the top of the industry, outperforming 81.91% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that HUBB is not too dependend on debt financing.
HUBB has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.76 |
ROIC/WACC1.65
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.17 indicates that HUBB should not have too much problems paying its short term obligations.
The Current ratio of HUBB (1.17) is worse than 65.96% of its industry peers.
A Quick Ratio of 0.73 indicates that HUBB may have some problems paying its short term obligations.
HUBB has a worse Quick ratio (0.73) than 67.02% 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
The Earnings Per Share has been growing slightly by 7.51% over the past year.
HUBB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.29% yearly.
The Revenue has been growing slightly by 1.97% in the past 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)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
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 Y7.37%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
EPS Next 5Y8.34%
Revenue Next Year4.07%
Revenue Next 2Y5%
Revenue Next 3Y4.53%
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
A Price/Earnings ratio of 25.20 indicates a quite expensive valuation of HUBB.
HUBB's Price/Earnings ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 77.66% of the companies in the same industry.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.32, which indicates a rather expensive current valuation of HUBB.
HUBB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUBB is cheaper than 78.72% of the companies in the same industry.
HUBB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 21.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 78.72% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBB indicates a somewhat cheap valuation: HUBB is cheaper than 77.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.74 | ||
| EV/EBITDA | 17.71 |
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)3.42
PEG (5Y)1.65
EPS Next 2Y8.39%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
HUBB has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 4.40, HUBB pays a better dividend. On top of this HUBB pays more dividend than 90.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HUBB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 34.14% 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.
DP34.14%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
414.84
-0.28 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change0.63%
Ins Owners0.39%
Ins Owner Change6.6%
Market Cap22.14B
Analysts74
Price Target427.79 (3.12%)
Short Float %4.74%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)1.24%
PT rev (3m)-7.65%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 21.32 | ||
| P/S | 3.96 | ||
| P/FCF | 28.74 | ||
| P/OCF | 23.64 | ||
| P/B | 6.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.71 |
EPS(TTM)16.46
EY3.97%
EPS(NY)19.46
Fwd EY4.69%
FCF(TTM)14.43
FCFY3.48%
OCF(TTM)17.55
OCFY4.23%
SpS104.83
BVpS61.11
TBVpS-7.09
PEG (NY)3.42
PEG (5Y)1.65
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 | 5.76 |
F-Score7
WACC9.72%
ROIC/WACC1.65
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 Y7.37%
EPS Next 2Y8.39%
EPS Next 3Y7.06%
EPS Next 5Y8.34%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y10.3%
Revenue growth 5Y7.36%
Sales Q2Q%-2.42%
Revenue Next Year4.07%
Revenue Next 2Y5%
Revenue Next 3Y4.53%
Revenue Next 5Y5.33%
EBIT growth 1Y8.08%
EBIT growth 3Y27.23%
EBIT growth 5Y14.73%
EBIT Next Year16.46%
EBIT Next 3Y9.72%
EBIT Next 5Y9.2%
FCF growth 1Y30.1%
FCF growth 3Y21.36%
FCF growth 5Y9.94%
OCF growth 1Y27.68%
OCF growth 3Y22.15%
OCF growth 5Y10.87%