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Hubbell B (HUBB)
NYSE:HUBB
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Hubbell B
(NYSE:HUBB)71Outperform
Positive Factors
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
Market Share and Growth
Forecasts indicate potential difficulty for HUBB to hold market share and sustain elevated margins due to extended channel destock.
Hubbell B (HUBB) vs. S&P 500 (SPY)
Market Cap
$18.58B
Dividend Yield1.43%
Average Volume (3M)747.41K
Price to Earnings (P/E)24.1
Beta (1Y)1.32
Revenue Growth4.76%
EPS Growth2.27%
CountryUS
Employees17,700
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)14.37
Shares Outstanding53,667,675
10 Day Avg. Volume802,270
30 Day Avg. Volume747,410
Financial Highlights & Ratios
PEG Ratio10.60
Price to Book (P/B)N/A
Price to Sales (P/S)3.30
Price to Cash Flow (P/CF)10.70
P/FCF Ratio10.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$449.83Price Target Upside26.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Hubbell B Business Overview & Revenue Model
Company DescriptionHubbell 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 MoneyHubbell 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.85
Very Positive
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.75
Positive
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.80
Positive
| 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
Negative
354.47
Price Trends
405.57
Negative
426.87
Negative
405.77
Negative
Market Momentum
-16.35
Positive
33.01
Neutral
26.95
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 354.47 is below the 20-day moving average (MA) of 376.44, below the 50-day MA of 405.57, and below the 200-day MA of 405.77, indicating a bearish trend. The MACD of -16.35 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.95 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $111.71B | 30.00 | 20.23% | 1.32% | 7.25% | 18.36% | |
74 Outperform | $66.88B | 28.21 | 9.66% | 1.77% | 10.29% | 22.72% | |
73 Outperform | $3.78B | 21.04 | 6.34% | 4.36% | -18.62% | -27.88% | |
71 Outperform | $18.58B | 24.09 | 25.26% | 1.43% | 4.76% | 2.27% | |
69 Neutral | $31.27B | 34.41 | 26.22% | 1.85% | -11.28% | -23.69% | |
63 Neutral | $9.79B | 18.81 | 28.63% | 1.90% | -0.90% | -1.69% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
HUBB
Hubbell B
354.47
-28.08
-7.34%
ALE
Allete
65.27
9.45
16.93%
ETN
Eaton
284.98
-5.05
-1.74%
EMR
Emerson Electric Company
118.61
10.91
10.13%
ROK
Rockwell Automation
276.54
-3.02
-1.08%
AOS
A. O. Smith Corporation
69.41
-14.45
-17.23%
Hubbell B Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -12.96% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
Hubbell demonstrated strong performance in operating metrics and managed challenges effectively, showing confidence in future growth. However, certain areas like telecom and grid automation faced difficulties, suggesting a balanced performance with both achievements and challenges.Highlights
Strong Growth in Operating Metrics
Hubbell delivered strong double-digit growth in adjusted operating profit, adjusted earnings per share, and free cash flow in the fourth quarter of 2024.
Record Earnings Per Share
2024 adjusted earnings per share of $16.57 was above the high-end of initial guidance range.
Successful Integration of Systems Control
The acquisition and integration of Systems Control contributed significantly to Hubbell's performance, especially in the Utility segment.
Continued Margin Expansion
The company achieved a year-over-year adjusted operating margin expansion of 240 basis points in the fourth quarter and 90 basis points on a full-year basis.
Positive 2025 Outlook
Hubbell is anticipating mid-single-digit organic growth with continued margin expansion and attractive growth in operating profit, earnings per share, and free cash flow for 2025.
Strong Free Cash Flow Performance
Free cash flow was up 28% in the fourth quarter, delivering above the target of $800 million for the full year, which is about a 98% conversion rate.
Lowlights
Organic Volume Challenges
Organic volumes were below expectations despite strong execution in other areas.
Utility Customer Destocking
Significant challenges in telecom markets and utility customer destocking affected performance.
Decline in Grid Automation Sales
Grid automation sales were down 11% in the fourth quarter due to challenging comparisons from the previous year.
Continued Weakness in Telecom Enclosures
Telecom enclosures area saw a decline of 20%.
Temporary Headwinds in 2024
Faced temporary headwinds such as customer inventory rationalization in utility distribution products.
Company Guidance
During the Fourth Quarter 2024 Hubbell Incorporated Earnings Conference Call, the company reported robust growth metrics, including double-digit increases in adjusted operating profit, adjusted earnings per share, and free cash flow. The adjusted operating margin expanded by 240 basis points year-over-year. For the full fiscal year 2024, Hubbell achieved mid-single-digit sales growth, 9% growth in adjusted operating profit, and a 90-basis-point expansion in adjusted operating margin. Adjusted earnings per share reached $16.57, surpassing the high end of their initial guidance. These results come despite challenges in telecom markets and utility customer destocking. Looking forward, Hubbell introduced their 2025 outlook, anticipating mid-single-digit organic growth with continued margin expansion, projecting adjusted earnings per share between $17.35 and $17.85, and maintaining a free cash flow conversion of at least 90% of adjusted net income.Hubbell B Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Hubbell B Appoints Rochow to Board for Strategic Growth
Positive
Nov 19, 2024
Garrick J. Rochow has been appointed as an independent director of Hubbell Incorporated, joining the Board’s Audit and Finance Committees. Rochow, who currently leads CMS Energy Corporation and Consumers Energy Company, brings extensive experience in the utility sector to Hubbell, a leader in utility and electrical solutions. His insights are expected to bolster Hubbell’s efforts in grid modernization and electrification, aligning with the company’s mission to enhance critical infrastructure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.