Hubbell Inc (HUBB) stock analysis

P/E below its 5-year median

Hubbell's P/E of 26.0 is below its own 5-year median of 27.7.

P/E below the industry

Hubbell's P/E of 26.0 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA below its 5-year median

Hubbell's EV/EBITDA of 17.5 is below its 5-year median of 18.4.

P/B above the industry

Hubbell's price-to-book of 5.71 is above the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $443.48 is below our fair value estimate of $455.93.

Margin of safety under 20%

The price is 2.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 5.6% over the last twelve months, against a 5-year average of 20.4% a year.

Growing slower than the industry

Revenue grew 16.0% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance raised

Hubbell raised its full year 2026 organic sales growth outlook on Jul 28, 2026.

Gross margin improving

Gross margin was 35.4% over the last twelve months, against 35.0% a year earlier.

Return on equity over 15%

Return on equity was 23.3% over the last twelve months and averaged 24.1% over five years.

Return on capital over 10%

Return on invested capital was 15.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Hubbell's return on equity of 23.3% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 20.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.8% over the last twelve months, against a 5-year average of 12.7%.

Net margin above the industry

Hubbell's net margin of 13.8% is above the Electronic Components and Accessories median of 2.9%.

High debt

Debt is 125% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 76.8% five years ago to 125%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.53 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.84; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Hubbell paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Hubbell yields 1.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.