| 2020 | 2021 | 2022 | 2023 (projected) | Consolidated Income | 351.2 M | 399.5 M | 545.9 M | 490.08 M | Direct Expenses | 2.98 B | 3.04 B | 3.48 B | 2.9 B |
Ownership Breakdown
| Retail Investors7.24% | Institutions92.43% |
| Retail Investors | 7.24 | |
| Insiders | 0.33 | |
| Institutions | 92.43 |
Should you hold on to your Hubbell position?
 | By Ellen Johnson | Macroaxis Story |
Hubbell Incorporated (NYSE: HUBB), a prominent player in the Electrical Equipment sector within the broader Industrials category, has been generating considerable interest among investors. As of July 24, 2023, the company's performance metrics indicate robust health, with a return on assets of 9.55% and a profit margin of 10.79%. The company's enterprise value revenue stands at 3.011, suggesting a fair valuation. Hubbell's strong financial performance is further underscored by its EBITDA of $956.3 million and net income from continuing operations of $516.8 million. Moreover, the company's net income applicable to common shares is a healthy $545.9 million, reflecting its solid profitability. The company's quarterly revenue growth of 11.2% also signals promising growth potential. Investors should note that the company's PEG ratio is 2.0427, which may suggest that the stock is slightly overvalued. However, the Wall Street target price for Hubbell is $311.57, with a possible downside price of $327.68, indicating potential for future growth. The company's diluted EPS stands at $10.93, and its revenue per share is $94.768, both of which suggest strong earnings potential. Despite the positive outlook, there is one analyst with a strong sell recommendation. However, two analysts have given strong buy recommendations, suggesting a generally positive sentiment towards the stock. The company's valuation hype value is $320.74, which could indicate some overhype in the market. In conclusion, Hubbell's solid financial performance and potential for growth make it a stock worth considering for investment in August. However, investors should be mindful of the potential downside and the slightly high PEG ratio. Hubbell's Net Income Per Employee is projected to increase significantly, based on the last few years of reporting. The previous year's Net Income Per Employee stood at 33,491. The current year's Free Cash Flow is anticipated to grow to approximately 463 million, while Revenue Per Employee is predicted to decline to about 254.1 thousand. As many millennials show interest in the electrical equipment sector, it is only logical to examine Hubbell. We will analyze why Hubbell investors might still consider investing in the company. This article aims to highlight some fundamental factors affecting Hubbell's products and services. Additionally, I will shed some light on how these factors may impact the investment outlook for Hubbell in August.
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Reviewed by Raphi Shpitalnik
More than 92.0% of Hubbell shares are held by institutional investors. This institutional ownership of Hubbell represents the proportion of Hubbell equity owned by entities such as mutual funds, pension funds, insurance companies, investment firms, foundations, and other large organizations that manage funds on behalf of others. Please refer to our latest analysis of Hubbell, which includes its current ownership diagnostics.
Deep-dive analysis
Hubbell Inc. (HUBB) is a key player in the Electrical Equipment & Parts industry, with a strong product portfolio that continues to drive its financial performance. The company's robust Return On Assets (ROA) of 9.55% underscores its effective use of resources to generate profits. Furthermore, Hubbell's impressive Net Income of $511.3 million demonstrates its ability to maintain profitability in a competitive market. The company's future earnings potential also looks promising, with an EPS Estimate for the next year standing at $14.54. This suggests that the company's products are expected to continue performing well in the market, potentially driving further growth. In addition, the company's Dividend Yield of 1.33% provides an additional income stream for investors, further enhancing the attractiveness of Hubbell's stock. In conclusion, Hubbell's strong product performance and promising earnings outlook illuminate further investment opportunities. However, investors should consider the company's Mean Deviation of 1.15, which indicates a certain level of risk associated with the stock. Despite this, the potential upside of 2.68% suggests that the rewards could outweigh the risks for investors willing to take on a bit of volatility. The performance of Hubbell in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Hubbell's stock prices. When investing in Hubbell, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Hubbell Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Hubbell carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.And What about dividends?
A dividend is the distribution of a portion of Hubbell earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Hubbell dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Hubbell one year expected dividend income is about USD3.53 per share.
At present, Hubbell's Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.58, whereas Dividend Yield is forecasted to decline to 0.01. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 245.5 M | 257.8 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.32 | 0.58 | |
| Dividend Paid And Capex Coverage Ratio | 2.14 | 1.38 |
Investing in dividend-paying stocks, such as Hubbell is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Hubbell must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Hubbell. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Hubbell's Liquidity
Hubbell financial leverage refers to using borrowed capital as a funding source to finance Hubbell ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hubbell financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Hubbell's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hubbell's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Hubbell's total debt and its cash.
What do experts say about Hubbell?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down Hubbell Further
Hubbell has a total of fifty-three million five hundred eighty-eight thousand five hundred outstanding shares. The majority of Hubbell outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Hubbell to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Hubbell. Please pay attention to any change in the institutional holdings of Hubbell as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Hubbell Inc. (NYSE: HUBB), a leading player in the Electrical Equipment & Parts industry, is poised to offer promising investment opportunities in August. The company, with a market cap of 19.2B and total assets of 5.4B, boasts a strong balance sheet.Hubbell's current ratio stands at 1.88X, suggesting a healthy financial position to meet short-term obligations. The company's EPS estimate for the current year is 13.83, indicating a potential for solid earnings. Moreover, the Wall Street target price for HUBB is 311.57, hinting at a potential upside for investors. The company's PE Ratio is 30.4663, which, although high, is justified by its EPS of 10.93X. Hubbell's debt to equity ratio is a manageable 0.62%, indicating a balanced approach to financing its operations. The company also has a robust operating margin of 0.16%, despite a change to net income resulting in a loss of 47.6M. With 92.43% of its shares owned by institutions, Hubbell demonstrates strong investor confidence. Furthermore, the company's beta of 1 suggests its stock price moves in line with the market, making it a relatively safe investment. Considering these factors, Hubbell could indeed illuminate further investment opportunities in August. .
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