Hubbell Inc

HUBB

Electronic Components & Accessories

Mkt Cap

$21.33B

PE

29.46

Debt

$2.134B

Cash

$388.2M

EV

$23.07B

FCF

$686.7M

Market Cap

$21.33B

P/E Ratio

29.46

Debt

$2.134B

Cash

$388.2M

EV

$23.07B

FCF

$686.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":325300000},{"time":"2015-12-30","value":277300000},{"time":"2016-12-30","value":293000000},{"time":"2017-12-30","value":242300000},{"time":"2018-12-30","value":358900000},{"time":"2019-12-30","value":399400000},{"time":"2020-12-30","value":349900000},{"time":"2021-12-30","value":398300000},{"time":"2022-12-30","value":544500000},{"time":"2023-12-30","value":758000000}],"Sales":[{"time":"2014-12-30","value":3359400000},{"time":"2015-12-30","value":3390400000},{"time":"2016-12-30","value":3505200000},{"time":"2017-12-30","value":3668800000},{"time":"2018-12-30","value":4481700000},{"time":"2019-12-30","value":4591000000},{"time":"2020-12-30","value":4186000000},{"time":"2021-12-30","value":4194100000},{"time":"2022-12-30","value":4947900000},{"time":"2023-12-30","value":5372900000}],"Net Margins":[{"time":"2014-12-30","value":0.09683276775614694},{"time":"2015-12-30","value":0.08178975932043417},{"time":"2016-12-30","value":0.08359009471642131},{"time":"2017-12-30","value":0.06604339293501962},{"time":"2018-12-30","value":0.08008121918022179},{"time":"2019-12-30","value":0.08699629710302766},{"time":"2020-12-30","value":0.08358815097945532},{"time":"2021-12-30","value":0.09496673899048663},{"time":"2022-12-30","value":0.11004668647304917},{"time":"2023-12-30","value":0.1410783748069013}],"Assets":[{"time":"2014-12-30","value":3322800000},{"time":"2015-12-30","value":3208700000},{"time":"2016-12-30","value":3525000000},{"time":"2017-12-30","value":3720600000},{"time":"2018-12-30","value":4872100000},{"time":"2019-12-30","value":4903000000},{"time":"2020-12-30","value":5085100000},{"time":"2021-12-30","value":5281500000},{"time":"2022-12-30","value":5402600000},{"time":"2023-12-30","value":6914000000}],"Stockholders Equity":[{"time":"2014-12-30","value":1935700000},{"time":"2015-12-30","value":1749000000},{"time":"2016-12-30","value":1603200000},{"time":"2017-12-30","value":1647900000},{"time":"2018-12-30","value":1798900000},{"time":"2019-12-30","value":1960500000},{"time":"2020-12-30","value":2085400000},{"time":"2021-12-30","value":2240700000},{"time":"2022-12-30","value":2370600000},{"time":"2023-12-30","value":2889300000}],"ROE":[{"time":"2014-12-30","value":0.1680529007594152},{"time":"2015-12-30","value":0.1585477415666095},{"time":"2016-12-30","value":0.18275948103792417},{"time":"2017-12-30","value":0.14703562109351295},{"time":"2018-12-30","value":0.1995108121629885},{"time":"2019-12-30","value":0.20372353991328743},{"time":"2020-12-30","value":0.1677855567277261},{"time":"2021-12-30","value":0.17775695095282723},{"time":"2022-12-30","value":0.22968868640850418},{"time":"2023-12-30","value":0.2623472813484235}],"ROA":[{"time":"2014-12-30","value":0.15571205007824726},{"time":"2015-12-30","value":0.1479103686851373},{"time":"2016-12-30","value":0.13554609929078015},{"time":"2017-12-30","value":0.13538139009837122},{"time":"2018-12-30","value":0.11430389359824306},{"time":"2019-12-30","value":0.12168060371201306},{"time":"2020-12-30","value":0.10481603114982989},{"time":"2021-12-30","value":0.10078576162075167},{"time":"2022-12-30","value":0.1312516195905675},{"time":"2023-12-30","value":0.15020248770610356}]}

Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, 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. It also designs and manufactures various 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; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Hubbell Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$686.7M	$755.9M	$827.9M	$902M	$977.7M	$1.054B	$1.131B	$1.206B	$1.28B	$1.352B	$1.419B	$14.19B
DCF		$657.3M	$626M	$593.1M	$559M	$524.1M	$488.8M	$453.5M	$418.5M	$384.2M	$350.8M	$3.508B
Value	$8.563B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 11%

Earnings Stability 78%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	8.2%	8.4%	6.6%	8%	8.7%	8.4%	9.5%	11%	14%	13%
ROA	15%	14%	14%	11%	12%	10%	10%	13%	15%	15%
ROE	16%	18%	15%	20%	20%	17%	18%	23%	26%	25%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.95%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.1%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.05%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.58%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +20.68%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.15%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.54	3.00	3.53	4.32	3.23	2.84	3.41	2.85	3.01	3.11
Debt Equity	0.37	0.62	0.64	1.01	0.82	0.76	0.64	0.61	0.75	0.73
MIN
Graham Stability	-	-	81%	100%	100%	100%	100%	100%	100%	81%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.11.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.20.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.81.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	6.3%	3.7%	8.7%	8.6%	0.58%
Net Income	15%	16%	29%	39%	5.2%
Stockholders Equity	8.8%	9.9%	11%	22%	2.9%
FCF	12%	11%	8.5%	41%	2.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.69%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.58%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +16.13%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +5.18%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.94%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.92%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.18%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.8%.