The Company in a Nutshell
- In 2018, HUBB acquired Aclara for its portfolio of smart meters and communication sensors.
- HUBB shows about 90% of its revenue coming from the U.S. It will follow U.S. economical conditions.
- HUBB deals with the top 10 U.S. largest electricity distributors.
- We do not cover Hubbell at the moment.
Date Reviewed | N/A |
Company Name | Hubbell Inc |
Symbol | HUBB |
Sector | Industrials |
Industry | Electrical Equipment & Parts |
Beta | 0.893 |
PRO Rating | 4 |
Dividend Safety | 4 |
Business Model
Hubbell Incorporated is a manufacturer of utility and electrical solutions. It has two segments: Utility Solutions and Electrical Solutions. Utility Solutions segment designs, manufactures and sells a range of electrical distribution, transmission, substation and telecommunications products. This includes utility transmission and distribution components, such as arresters, insulators, connectors, anchors, bushings, enclosures, cutouts and switches. Electrical Solutions segment comprises businesses, which sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, connector and grounding products, and lighting fixtures, as well as other electrical equipment. Its products are either sourced completely, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, Mexico, the People's Republic of China, the United Kingdom, Brazil, Australia, Spain, Ireland and the Republic of the Philippines.
Current price | 422.52 |
ROE | 28.95 % |
ROIC | 17.85 % |
Shareholder Yield | 0.05 % |
5-Yr Total Return | 244.40 % |
1-Yr Total Return | 32.15 % |
Next Earnings Date | 10-29-24 |
Latest Quarter Information
What the CEO said:
Hubbell delivered solid performance in the second quarter. Operational execution was strong, and the Company returned to adjusted operating margin expansion in the quarter. Second quarter performance was highlighted by strong organic growth and margin expansion in our Electrical Solutions segment. Robust project activity drove strong sales growth in datacenters and renewables as our vertical market strategy continues to gain traction and differentiate Hubbell with our customers. Operational execution on HES segment unification and simplification efforts contributed to significant operating margin expansion in the quarter.
What we say:
08-27-2024, HUBB reported Q2 sales growth of 6% and organic sales growth of 2%. Q2 was marked by organic growth and margin expansion in Electrical Solutions. Sales growth was driven by acquisitions in the Utility Solutions and strong Utility T&D end-market demand. The Electrical Solutions' net sales decreased slightly to $526M, while Utility Solutions' net sales grew 12% to $927M. Net cash provided by operating activities was $240M and free cash flow was $206M. Hubbell updated its FY24 guidance for adjusted DEPS to $16.20-$16.50, with total sales growth of 7%-8%, and organic sales growth of ~3%. Closed acquisitions are anticipated to contribute ~5% to total sales growth in FY24.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 3.70 % |
5-Yr EPS Growth | 16.55 % |
5-Yr Div Growth | 7.75 % |
Potential Risks
Debt/Equity | 0.75 |
Financial Debt to EBITDA (TTM) | 1.65 |
Current Ratio (Quarterly) | 1.65 |
Credit Score | 68 |
Dividend Growth Perspective
Dividend ($) | 4.88 |
Dividend Yield Fwd | 1.20 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 2.00 % |
Payout Ratio (%) | 32.45 |
Cash Payout Ratio (%) | 36.60 |
DGR 1-Yr | 8.95 |
DGR 3-Yr | 7.25 |
DGR 5-Yr | 7.75 |
DGR Streak | 16 |
Chowder Score | 8.95 |
Next DVD PMT | 09-16-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 22 B |
PE Ratio | 30.30 |
Fwd PE | 23.65 |
Price to Book Ratio | 7.20 |
DDM Valuation | N/A |
Average 5-Yr PE | 26.56 |
Value Score | 25 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.