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Hubbell B (HUBB)
NYSE:HUBB

Hubbell B (HUBB) AI Stock Analysis

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Hubbell B

(NYSE:HUBB)

Rating:79Outperform
Price Target:
$447.00
▲(13.08%Upside)
Hubbell B's strong financial performance is the most significant factor in its overall score, supported by effective cash flow management and operational efficiency. The earnings call highlights strategic growth areas and proactive management actions. While the technical analysis and valuation suggest a mixed outlook, the company's financial stability and growth initiatives position it well for future performance.
Positive Factors
Revenue Growth
HUBB deserves to trade at a 10% premium to peers given prospects for mid-to-high single-digit organic revenue growth, which is above the peer group average.
Negative Factors
Market Share
Forecasts indicate potential difficulty for HUBB to hold market share and sustain elevated margins due to extended channel destock.
Organic Growth
Concerns exist about HUBB's Q1 organic growth being flat, which is a negative outcome compared to management's expectations.

Hubbell B (HUBB) vs. SPDR S&P 500 ETF (SPY)

Hubbell B Business Overview & Revenue Model

Company DescriptionHubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical Solution and Utility Solution. 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 for the natural gas distribution market. 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 distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, industrial firms, and construction and engineering firms. 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.
How the Company Makes MoneyHubbell Incorporated generates revenue primarily through the sale of its electrical and utility products. The Electrical Solutions segment offers a variety of products such as wiring devices, lighting, and power solutions for industrial, commercial, and residential markets. The Utility Solutions segment provides products for the transmission, distribution, and generation of electricity, serving utility companies and related industries. Hubbell's revenue streams are supported by its strong distribution network, strategic acquisitions, and partnerships, enabling the company to maintain a competitive edge in the electrical and utility sectors.

Hubbell B Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 9.20%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. The company highlighted strong growth in the Electrical Solutions segment and a return to organic growth in grid infrastructure. However, challenges such as the decline in grid automation sales and increased cost inflation due to tariffs were notable lowlights. While proactive steps are being taken to manage these challenges, the sentiment is balanced between positive growth areas and significant challenges.
Q1-2025 Updates
Positive Updates
Electrical Solutions Segment Growth
Electrical Solutions segment delivered mid-single-digit organic growth with adjusted operating margin expansion and strong core adjusted operating profit growth.
Strong Data Center Growth
Electrical Solutions segment witnessed strong data center growth in the first quarter, contributing significantly to overall performance.
Return to Organic Growth in Grid Infrastructure
Grid infrastructure business returned to organic growth, with double-digit growth across transmission and substation markets.
Encouraging Order Trends
Recent order trends in distribution markets were strong, indicating a positive outlook and emergence from customer inventory normalization.
Cost Mitigation Actions
Hubbell implemented actions to offset cost inflation due to raw material prices and tariffs, indicating proactive management.
Negative Updates
Grid Automation Sales Decline
Grid automation sales fell by 15% due to challenging prior year comparisons, impacting overall performance.
Increased Cost Inflation
Higher raw material prices and tariffs led to increased cost inflation, creating a negative impact in the first quarter.
Distribution Markets Decline
Distribution markets were down in the quarter, although sales and orders showed sequential improvement.
Tariff Impact on Costs
The implementation of tariffs led to a headwind in the first quarter, with ongoing reciprocal tariffs adding further pressure.
Company Guidance
In the first quarter of fiscal year 2025, Hubbell Incorporated demonstrated strong performance, particularly in its Electrical Solutions segment, which achieved mid-single-digit organic growth and continued adjusted operating margin expansion. This segment also experienced strong core adjusted operating profit growth, driven by strategic efforts to unify segments and compete collectively, with notable success in the data center market. The Utility Solutions segment faced anticipated challenges, with grid automation sales declining due to tough prior year comparisons. However, the grid infrastructure business returned to organic growth, supported by robust demand in transmission and substation markets. Despite headwinds from increased cost inflation related to raw material prices and tariffs, Hubbell maintained its full-year 2025 outlook, leveraging proactive cost management and strategic initiatives to offset these impacts. The company highlighted strong order trends and favorable end markets, positioning itself to achieve its financial and strategic commitments amidst macroeconomic uncertainty. Additionally, Hubbell emphasized its U.S.-centric manufacturing focus, with over 90% of sales in the U.S., which aids in mitigating the effects of international tariffs and cost pressures.

Hubbell B Financial Statement Overview

Summary
Hubbell B presents a robust financial position with strong income generation, stable balance sheet metrics, and effective cash flow management. The company demonstrates resilience in profitability and operational efficiency, with balanced leverage and cash position, positioning it well for future growth.
Income Statement
85
Very Positive
Hubbell B has demonstrated strong profitability with a consistent gross profit margin and improving net profit margin, supported by steady revenue growth. The company has maintained a healthy EBIT and EBITDA margin, indicating operational efficiency and robust earnings before interest and taxes.
Balance Sheet
78
Positive
The balance sheet reflects a solid equity position with a healthy equity ratio. The debt-to-equity ratio is stable, showing a balanced approach to leverage. However, the return on equity, while positive, suggests room for enhancement in terms of generating income from equity.
Cash Flow
82
Very Positive
Cash flow analysis is strong, with significant operating cash flow that comfortably covers net income. Free cash flow growth is positive, indicating effective cash management and the ability to fund operations and growth initiatives without heavy reliance on external financing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.59B5.63B5.37B4.95B4.19B4.19B
Gross Profit
1.91B1.90B1.89B1.47B1.15B1.21B
EBIT
1.11B1.09B1.04B709.10M532.30M533.00M
EBITDA
1.29B1.29B1.17B854.30M661.00M671.40M
Net Income Common Stockholders
799.70M777.80M759.80M545.90M399.50M351.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
360.30M345.00M348.70M454.80M295.60M268.90M
Total Assets
6.92B6.68B6.91B5.40B5.28B5.09B
Total Debt
2.01B1.72B2.29B1.44B1.45B1.59B
Net Debt
1.66B1.39B1.95B1.00B1.16B1.33B
Total Liabilities
3.65B3.40B4.02B3.03B3.04B3.00B
Stockholders Equity
3.27B3.27B2.88B2.36B2.23B2.07B
Cash FlowFree Cash Flow
770.30M810.80M715.10M453.90M453.60M559.60M
Operating Cash Flow
936.40M991.20M880.80M583.20M543.80M648.00M
Investing Cash Flow
-247.00M-59.10M-1.38B16.40M-77.80M-328.80M
Financing Cash Flow
-723.10M-923.40M388.50M-437.10M-433.00M-244.20M

Hubbell B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price395.28
Price Trends
50DMA
360.00
Positive
100DMA
371.19
Positive
200DMA
399.24
Negative
Market Momentum
MACD
8.58
Positive
RSI
61.34
Neutral
STOCH
63.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBB, the sentiment is Positive. The current price of 395.28 is above the 20-day moving average (MA) of 386.83, above the 50-day MA of 360.00, and below the 200-day MA of 399.24, indicating a neutral trend. The MACD of 8.58 indicates Positive momentum. The RSI at 61.34 is Neutral, neither overbought nor oversold. The STOCH value of 63.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUBB.

Hubbell B Risk Analysis

Hubbell B disclosed 25 risk factors in its most recent earnings report. Hubbell B reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be required to recognize impairment charges for our goodwill and other intangible assets. Q4, 2024
2.
We have outstanding indebtedness; our indebtedness may increase as we engage in acquisitions and other activities to support our growth strategies. Q4, 2024
3.
Our ability to access capital markets or failure to maintain our credit ratings may adversely affect our business. Q4, 2024

Hubbell B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NVNVT
83
Outperform
$10.92B18.947.63%1.15%-5.12%1.69%
VRVRT
82
Outperform
$42.77B65.0632.82%0.11%20.45%66.80%
79
Outperform
$21.10B26.7325.78%1.31%1.97%10.22%
AYAYI
76
Outperform
$8.19B20.1017.86%0.24%2.78%11.53%
74
Outperform
$4.58B62.826.36%0.33%0.06%-28.32%
ENENS
67
Neutral
$3.35B9.5119.82%1.10%-2.94%22.32%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUBB
Hubbell B
395.28
30.99
8.51%
AYI
Acuity Brands
269.89
16.13
6.36%
AEIS
Advanced Energy
121.56
16.60
15.82%
ENS
EnerSys
86.92
-17.51
-16.77%
NVT
nVent Electric
68.02
-9.31
-12.04%
VRT
Vertiv Holdings
115.36
24.18
26.52%

Hubbell B Corporate Events

Private Placements and Financing
Hubbell B Secures New $1 Billion Credit Facility
Neutral
Mar 26, 2025

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.

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.