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Hubbell B (HUBB)
NYSE:HUBB
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Hubbell B (HUBB) AI Stock Analysis

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HUBB

Hubbell B

(NYSE:HUBB)

Rating:80Outperform
Price Target:
$502.00
▲(14.76%Upside)
Hubbell B's strong financial performance and positive earnings call guidance are major strengths, supporting a robust stock score. While technical indicators are generally positive, the high valuation and challenges related to raw material costs are key risks. Overall, the company is well-positioned with a strong financial foundation and growth prospects in key sectors.
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 (HUBB) is an American company that designs, manufactures, and sells electrical and electronic products for a broad range of non-residential and residential construction, industrial, and utility applications. The company operates through two main segments: Electrical Solutions and Utility Solutions. Its diverse product portfolio includes wiring devices, lighting fixtures, power and data solutions, and utility products, catering to a wide array of industries and markets.
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:Jul 29, 2025
(Q2-2025)
|
% Change Since: -0.20%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong growth in key segments such as Grid Infrastructure and Electrical Solutions, leading to an increased full year EPS guidance. However, challenges in grid automation and raw material inflation were notable concerns.
Q2-2025 Updates
Positive Updates
Double-Digit Adjusted EPS Growth
Hubbell delivered double-digit adjusted earnings per share growth in the second quarter, driven by strong organic growth in Grid Infrastructure and Electrical Solutions, as well as a year-over-year adjusted operating margin expansion of 120 basis points.
Organic Growth in Grid Infrastructure
Utility Solutions segment saw a 7% organic growth in grid infrastructure, with strong transmission and substation markets and a recovery in distribution markets.
Raising Full Year Outlook
Hubbell raised its full year adjusted earnings per share outlook to a range of $17.65 to $18.15, representing a raise of $0.30 at both the low and high end of the prior outlook range.
Mid-Single-Digit Organic Growth in Electrical Solutions
Electrical Solutions segment delivered mid-single-digit organic growth, with a 9% adjusted operating profit growth. Strong performance noted in data centers and light industrial markets.
Negative Updates
Weak Performance in Grid Automation
Grid automation faced a weaker-than-anticipated performance with a 13% contraction, primarily due to the roll-off of large projects and erratic comparisons from the previous year.
Challenges with Raw Material Inflation and Tariffs
Raw material inflation and tariffs are driving incremental cost inflation, impacting the company's pricing and cost management strategies.
Company Guidance
During Hubbell's second quarter 2025 earnings call, the company provided guidance highlighting a strong performance with double-digit adjusted earnings per share growth and a year-over-year adjusted operating margin expansion of 120 basis points. The company raised its full-year adjusted EPS outlook to a range of $17.65 to $18.15, reflecting a $0.30 increase at both the low and high ends of the prior range. Organic growth was projected at 4% to 6%, driven by strong performance in both Grid Infrastructure and Electrical Solutions. Hubbell emphasized its ability to manage price/cost dynamics effectively, especially in light of material inflation and tariffs, and mentioned a successful transition to a FIFO-based inventory accounting standard, which contributed a $29 million decrease in COGS for Q2. The company also highlighted sector-specific growth, such as 7% organic growth in grid infrastructure and 9% adjusted operating profit growth in Electrical Solutions, with continued focus on productivity improvements and long-term margin expansion.

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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.63B5.37B4.95B4.19B4.19B
Gross Profit1.90B1.89B1.47B1.15B1.21B
EBITDA1.29B1.17B854.30M661.00M671.40M
Net Income777.80M759.80M545.90M399.50M351.20M
Balance Sheet
Total Assets6.68B6.91B5.40B5.28B5.09B
Cash, Cash Equivalents and Short-Term Investments345.00M348.70M454.80M295.60M268.90M
Total Debt1.72B2.29B1.44B1.45B1.59B
Total Liabilities3.40B4.02B3.03B3.04B3.00B
Stockholders Equity3.27B2.88B2.36B2.23B2.07B
Cash Flow
Free Cash Flow810.80M715.10M453.90M453.60M559.60M
Operating Cash Flow991.20M880.80M583.20M543.80M648.00M
Investing Cash Flow-59.10M-1.38B16.40M-77.80M-328.80M
Financing Cash Flow-923.40M388.50M-437.10M-433.00M-244.20M

Hubbell B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price437.44
Price Trends
50DMA
407.06
Positive
100DMA
377.05
Positive
200DMA
401.25
Positive
Market Momentum
MACD
9.39
Positive
RSI
61.47
Neutral
STOCH
54.66
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 437.44 is above the 20-day moving average (MA) of 426.09, above the 50-day MA of 407.06, and above the 200-day MA of 401.25, indicating a bullish trend. The MACD of 9.39 indicates Positive momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 54.66 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.61B10.4019.82%1.04%1.00%38.51%
80
Outperform
$22.81B27.7425.34%1.18%0.95%13.74%
79
Outperform
$13.12B22.777.63%1.01%-5.12%1.69%
76
Outperform
$5.35B73.496.36%0.29%0.06%-28.32%
73
Outperform
$54.38B68.2334.84%0.09%26.31%62.78%
69
Neutral
$9.54B24.5316.60%0.21%9.16%4.09%
67
Neutral
£2.85B10.494.46%3.55%2.44%-20.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUBB
Hubbell B
437.48
75.98
21.02%
AYI
Acuity Brands
311.35
81.67
35.56%
AEIS
Advanced Energy
138.92
37.63
37.15%
ENS
EnerSys
92.37
-8.31
-8.25%
NVT
nVent Electric
78.42
14.76
23.19%
VRT
Vertiv Holdings
145.60
76.23
109.89%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 31, 2025