Hubbell B (HUBB) AI Stock Analysis

• Market Cap: $16.93B
• Dividend Yield: 1.6%
• Average Volume (3M): 717.58K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.18
• Revenue Growth: 4.76%
• EPS Growth: 2.27%
• Country: US
• Employees: 17,700
• Sector: Industrials
• Sector Strength: 64
• Industry: Electrical Equipment & Parts
• EPS (TTM): 14.37
• Shares Outstanding: 53,573,360
• 10 Day Avg. Volume: 636,026
• 30 Day Avg. Volume: 717,575
• PEG Ratio: 9.67
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.23
• Price to Cash Flow (P/CF): 10.50
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $420.67
• Price Target Upside: 32.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Hubbell B shows solid financial performance and strong operating metrics from the earnings call, contributing positively to the score. However, technical analysis indicates bearish trends, which weigh down the overall score. The moderately high valuation limits upside potential, while the earnings call highlights growth prospects despite market challenges.

Positive Factors

Free Cash Flow

Free cash flow increased to $189 million, up 19% year over year compared to $159 million a year prior.

Operational Performance

Hubbell posted an operationally strong quarter despite the lingering Telecom pressure and Utility-level Distribution destocking.

Profit Margins

HUBB reported adjusted operating profit margins of 23.2%, expanding by 180 basis points year over year from 21.4%, thanks to portfolio transformation and operation execution.

Negative Factors

Earnings Growth Comparison

Expectations are for other companies like GEV, VRT, and ETN to grow earnings at a faster rate than HUBB, justifying a more premium valuation for them over HUBB.

Organic Growth Concerns

Concerns exist about HUBB's Q1 organic growth being flat, which is a negative outcome compared to management's expectations.

Utility Sector Challenges

Roughly 50% of HUBB’s Utility portfolio is tied to categories expected to grow only at GDP rates, limiting upside potential.

Hubbell B Business Overview & Revenue Model

Company Description

Hubbell Incorporated (HUBB) is an established industrial manufacturer that operates primarily in the electrical and utility solutions sectors. The company provides a wide range of products and services including wiring, lighting, electrical and power components, and systems for non-residential and residential construction, industrial applications, and utility markets.

How the Company Makes Money

Hubbell makes money through the design, manufacture, and sale of electrical and utility solutions. Its revenue model is primarily based on the sales of its comprehensive portfolio of products across two main segments: Electrical Solutions and Utility Solutions. The Electrical Solutions segment provides products such as lighting fixtures, wiring devices, and other electrical components, serving markets like commercial, industrial, and residential construction. The Utility Solutions segment focuses on products like utility transmission and distribution components, which are sold to utility companies for grid infrastructure and maintenance. Hubbell's revenue streams are bolstered by its strategic partnerships with distributors and direct sales to end-users, ensuring a steady demand for its essential infrastructure products. Additionally, the company benefits from its reputation for quality and innovation, driving repeat business and customer loyalty.

Hubbell B Financial Statement Overview

Summary

Hubbell B exhibits a robust financial standing with consistent revenue and profit growth, strong profitability, and efficient cash flow generation. The debt-to-equity ratio is controlled; however, the return on equity suggests potential for improved capital utilization.

Income Statement

Hubbell B's income statement shows a strong financial performance with a steady revenue growth rate of 4.76% from 2023 to 2024 and a robust EBIT margin of 19.39% for 2024. The gross profit margin is solid at 33.83%, while the net profit margin stands at a commendable 13.81%. These margins indicate effective cost management and strong profitability. The consistent growth trajectory highlights the company's ability to expand operations and capture market share.

Balance Sheet

The balance sheet displays a healthy equity ratio of 48.94% for 2024, showcasing a strong capital structure. The debt-to-equity ratio is at 0.48, reflecting a balanced approach to leverage. However, the return on equity is moderate at 23.80%, suggesting room for improvement in leveraging equity to generate earnings. The company maintains a solid asset base, supporting long-term stability.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 13.38% from 2023 to 2024, indicating efficient capital expenditure management. The operating cash flow to net income ratio of 1.27 showcases strong cash generation capability relative to earnings. The free cash flow to net income ratio stands at 1.04, underscoring the company's ability to convert profits into cash effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.63B	5.37B	4.95B	4.19B	4.19B
	Gross Profit
1.90B	1.89B	1.47B	1.15B	1.21B
	EBIT
1.09B	1.04B	709.10M	532.30M	533.00M
	EBITDA
1.29B	1.17B	854.30M	661.00M	671.40M
	Net Income Common Stockholders
777.80M	759.80M	545.90M	399.50M	351.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
345.00M	348.70M	454.80M	295.60M	268.90M
	Total Assets
6.68B	6.91B	5.40B	5.28B	5.09B
	Total Debt
1.72B	2.29B	1.44B	1.45B	1.59B
	Net Debt
1.39B	1.95B	1.00B	1.16B	1.33B
	Total Liabilities
3.40B	4.02B	3.03B	3.04B	3.00B
	Stockholders Equity
3.27B	2.88B	2.36B	2.23B	2.07B
Cash Flow		Free Cash Flow
810.80M	715.10M	453.90M	453.60M	559.60M
	Operating Cash Flow
991.20M	880.80M	583.20M	543.80M	648.00M
	Investing Cash Flow
-59.10M	-1.38B	16.40M	-77.80M	-328.80M
	Financing Cash Flow
-923.40M	388.50M	-437.10M	-433.00M	-244.20M

Hubbell B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 317.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBB, the sentiment is Negative. The current price of 317.5 is below the 20-day moving average (MA) of 335.42, below the 50-day MA of 363.78, and below the 200-day MA of 400.74, indicating a bearish trend. The MACD of -10.45 indicates Negative momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 28.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUBB.

Hubbell B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRT	76 Outperform	$22.62B	46.29	22.29%	0.20%	16.74%	9.28%
ENS	72 Outperform	$3.20B	10.03	18.36%	1.17%	-2.94%	22.32%
HUBB	71 Outperform	$16.93B	21.98	25.26%	1.60%	4.76%	2.27%
AYI	71 Outperform	$7.03B	17.23	17.86%	0.27%	2.78%	11.53%
NVT	66 Neutral	$7.45B	22.93	8.73%	1.67%	0.78%	-41.54%
AEIS	64 Neutral	$2.98B	55.16	4.80%	0.49%	-10.49%	-57.78%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%

Hubbell B Corporate Events

Hubbell B Secures New $1 Billion Credit Facility

On March 25, 2025, Hubbell Incorporated entered into a five-year credit agreement with a syndicate of lenders, including JPMorgan Chase Bank, N.A., to secure a $1.0 billion unsecured revolving credit facility. This agreement, which can be increased to $1.5 billion, is intended for general corporate purposes and includes a $50 million sub-limit for letters of credit. The agreement allows for loans in multiple currencies and includes customary financial covenants and conditions. Concurrently, Hubbell terminated its previous credit agreement from March 12, 2021.