Hubbell (HUBB): Evaluating Value as CFO Bill Sperry Announces Retirement and Transition Plan

If you’re a Hubbell (HUBB) shareholder, the news that longtime CFO Bill Sperry will retire at the end of 2025 might have caught your attention. After 14 years in the CFO seat and 17 years with the company, his influence has shaped much of Hubbell’s financial direction. The company is not looking far for its next finance chief, as Joseph Capozzoli, currently Vice President of Finance for Hubbell's Electrical Solutions segment, will step into the CFO role starting January 1, 2026. This sets the stage for a carefully managed transition.

This leadership change arrives after another year of steady performance for Hubbell, with the stock up just under 10% over the past 12 months and showing a healthy 15% bump across the past three months. While most recent trading has been flat, the longer-term trend is firmly positive, underpinned by consistent earnings and revenue growth. With an internal candidate set to take over as CFO, there is no sign of disruption. Instead, the focus is on continuity and setting expectations for the months ahead.

So, after this year’s gains and the leadership transition on the horizon, is there untapped value in Hubbell or are investors already pricing in all of that future growth?

Most Popular Narrative: 4% Undervalued

According to the most widely followed narrative, Hubbell is currently trading at a modest 4% discount to its estimated fair value. Analysts see upside based on strong operating performance and sector trends, supported by solid future earnings projections.

Hubbell's Electrical Solutions segment is achieving mid-single-digit organic growth and improved operating margins. The business is bolstered by strong demand in data centers and ongoing efforts in business simplification, which are expected to support long-term margin expansion. This is expected to positively impact revenue and net margins.

Want to know what is powering this undervaluation call? The key is how analysts incorporate ambitious growth targets along with profitability levels that might surprise you. What assumptions are they really making to determine that fair value? Explore the financial metrics and forecasts driving this narrative and see whether the outlook for Hubbell aligns with its current price.

Result: Fair Value of $456.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing cost inflation and potential tariff-related supply chain disruptions could still challenge Hubbell’s earnings momentum if these issues are not successfully managed.

Find out about the key risks to this Hubbell narrative.

Another View: DCF Model Suggests Overvaluation

While analysts see Hubbell as slightly undervalued, our DCF model presents a more cautious outlook. It suggests the stock could be overvalued based on long-term cash flow projections. Which framework holds up best for investors?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hubbell for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Hubbell Narrative

If you have a different perspective or want to dig into the numbers yourself, you can build your own view in just a few minutes. Do it your way.

A great starting point for your Hubbell research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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