NYSE:HUBB

Stock Analysis Report

Executive Summary

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally.


Snowflake Analysis

Outstanding track record established dividend payer.


Similar Companies

Share Price & News

How has Hubbell's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HUBB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

HUBB

-1.7%

US Electrical

0.06%

US Market


1 Year Return

21.9%

HUBB

12.4%

US Electrical

19.4%

US Market

Return vs Industry: HUBB exceeded the US Electrical industry which returned 12.4% over the past year.

Return vs Market: HUBB exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

HUBBIndustryMarket
7 Day-2.1%-1.7%0.06%
30 Day-2.1%-0.7%1.1%
90 Day0.5%5.4%8.9%
1 Year25.3%21.9%14.7%12.4%21.9%19.4%
3 Year30.1%20.3%33.1%25.4%48.9%39.3%
5 Year42.4%26.3%48.5%33.6%71.9%53.1%

Price Volatility Vs. Market

How volatile is Hubbell's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hubbell undervalued compared to its fair value and its price relative to the market?

19.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HUBB ($146.06) is trading above our estimate of fair value ($129.14)

Significantly Below Fair Value: HUBB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HUBB is good value based on its PE Ratio (19.9x) compared to the Electrical industry average (20.9x).

PE vs Market: HUBB is poor value based on its PE Ratio (19.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HUBB is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: HUBB is overvalued based on its PB Ratio (4.1x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

How is Hubbell forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUBB's forecast earnings growth (7.7% per year) is above the savings rate (1.7%).

Earnings vs Market: HUBB's earnings (7.7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HUBB's earnings are forecast to grow, but not significantly.

Revenue vs Market: HUBB's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HUBB's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUBB's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Hubbell performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUBB has high quality earnings.

Growing Profit Margin: HUBB's current net profit margins (8.7%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: HUBB's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: HUBB's earnings growth over the past year (11.3%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: HUBB earnings growth over the past year (11.3%) exceeded the Electrical industry 0.6%.


Return on Equity

High ROE: HUBB's Return on Equity (20.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hubbell's financial position?


Financial Position Analysis

Short Term Liabilities: HUBB's short term assets ($1.6B) exceed its short term liabilities ($844.9M).

Long Term Liabilities: HUBB's short term assets ($1.6B) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: HUBB's debt to equity ratio (80.2%) is considered high.

Reducing Debt: HUBB's debt to equity ratio has increased from 30.8% to 80.2% over the past 5 years.

Debt Coverage: HUBB's debt is well covered by operating cash flow (37.6%).

Interest Coverage: HUBB's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: HUBB has a high level of physical assets or inventory.

Debt Coverage by Assets: HUBB's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Hubbell's current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 19 2020Ex Dividend DateFeb 27 2020Dividend Pay DateMar 16 202018 days from Ex DividendBuy in the next 7 days to receive upcoming dividend

Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: HUBB's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HUBB's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: HUBB's dividends per share have been stable in the past 10 years.

Growing Dividend: HUBB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.7%), HUBB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HUBB's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Dave Nord (61yo)

7.1yrs

Tenure

US$7,620,663

Compensation

Mr. David G. Nord, also known as Dave, has been Chief Executive Officer of Hubbell Inc. since January 1, 2013 and served as its President since June 6, 2012 until June 6, 2019. Mr. Nord has been a Director ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD7.62M) is about average for companies of similar size in the US market ($USD6.27M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Nord
Chairman & CEO7.1yrsUS$7.62m0.25% $20.0m
Gerben Bakker
President & COO0.7yrsUS$1.97m0.036% $2.9m
William Sperry
Executive VP7.7yrsUS$2.56m0.10% $7.9m
Rodd Ruland
Group President of Construction & Energy4.7yrsUS$1.74m0.024% $1.9m
Joseph Capozzoli
VP, Controller & Principal Accounting Officer0yrsno data0.0092% $733.1k
Daniel Innamorato
Director of Investor Relations0yrsno datano data
Katherine Lane
VP, General Counsel & Corporate Secretary0.7yrsno data0.0050% $394.4k
Stephen Mais
Senior Vice President of Human Resources3.8yrsno data0.024% $1.9m
Darrin Wegman
Group President of Commercial & Industrial4.7yrsUS$1.37m0.026% $2.0m
James Farrell
Acting Group President of Lighting0.3yrsno datano data

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: HUBB's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Nord
Chairman & CEO7.1yrsUS$7.62m0.25% $20.0m
Steven Shawley
Independent Director6yrsUS$219.91k0.0018% $146.3k
John Russell
Independent Director8.5yrsUS$231.91k0.0080% $636.8k
Neal Keating
Independent Director9.4yrsUS$214.91k0.015% $1.2m
Carlos Cardoso
Independent Director7.1yrsUS$231.91k0.0037% $295.8k
John Malloy
Independent Director8.7yrsUS$217.91k0.026% $2.1m
Judith Marks
Independent Director4.1yrsUS$209.91k0.0018% $146.3k
Anthony Guzzi
Lead Director0yrsUS$233.25k0.012% $946.1k
Bonnie Cruickshank-Lind
Independent Director1.1yrsno data0.0011% $87.5k

6.5yrs

Average Tenure

61yo

Average Age

Experienced Board: HUBB's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hubbell Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hubbell Incorporated
  • Ticker: HUBB
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$7.951b
  • Shares outstanding: 54.43m
  • Website: https://www.hubbell.com

Number of Employees


Location

  • Hubbell Incorporated
  • 40 Waterview Drive
  • Shelton
  • Connecticut
  • 6484
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUECDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
HUBBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HUBB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates in two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures industrial controls and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. It also offers advanced metering infrastructure, meter and edge devices, software, and infrastructure services. This segment sells its products to distributors, as well as directly to users, such as electric, water, and gas utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction and transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:11
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.