Hubbell (HUBB)
Industrials · $23.0B market cap · SEC CIK 0000048898
ahead of 69% of the S&P 500 · #21 of 79 in Industrials
Next reports on Feb 1, 2027, after the close, with analysts expecting $5.36 in earnings per share.
52-week range $403.82 to $565.50. 23% below its 52-week high and 8% above its low.
The case for HUBB
- Revenue growing 16.0% year over year.
- Return on equity of 23%.
- Pays a modest 1.6% dividend.
The case against
- The price trend is weak (29/100): −4.5% over a year, −12.5% over three months, 23% below its 52-week high.
- Weakest against its peers: price/sales of 3.5× is higher than 51% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 71 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 56 |
| Momentumhow the price has behaved lately | 29 |
| Stabilityhow violently it moves, what it owes and what it pays you | 80 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +16.0% |
|---|---|
| Over 5 years | +9.7% a year |
| FY2025 revenue | $5.8B (+4%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $875M |
|---|---|
| Of revenue | 15% |
| Of profit | 99% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 35% |
|---|---|
| Operating margin | 20% |
| Net margin, FY24 → FY25 → now | 13.8% → 15.2% → 13.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $483M |
|---|---|
| Long-term debt | $2.0B |
| Net debt | $1.6B |
| Years to repay | 2.0 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 25.3× |
|---|---|
| Fair P/E for its growth | 34× |
| P/FCF | 26.3× |
| Forward P/E | 18.7× |
| EV / EBITDA | 17.2× |
At 25.3× earnings it trades below the 34× that 15% a year of growth plus a 1.6% dividend would justify. At 26.3× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Hubbell's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $5.8B | $5.6B | $5.4B | $4.9B | $4.2B |
| Change on the year | +4% | +5% | +9% | +18% | — |
| Free cash flow | |||||
| Free cash flow | $875M | $811M | $715M | $507M | $424M |
| Of revenue | 15% | 14% | 13% | 10% | 10% |
| Profit margins | |||||
| Gross margin | 35.3% | 33.9% | 34.9% | 29.7% | 27.5% |
| Operating margin | 20.7% | 19.4% | 19.1% | 14.3% | 12.7% |
| Net margin | 15.2% | 13.8% | 14.0% | 11.0% | 9.5% |
| Debt vs. cash | |||||
| Cash | $483M | $329M | $336M | $441M | $286M |
| Long-term debt | $2.0B | $1.4B | $2.0B | $1.4B | $1.4B |
| Net cash (debt) | −$1.6B | −$1.1B | −$1.7B | −$997M | −$1.1B |
What Hubbell says it does
Hubbell Incorporated (herein referred to as “Hubbell”, the “Company”, the “registrant”, “we”, “our” or “us”, which references shall include its divisions and subsidiaries as the context may require) was founded as a proprietorship in 1888, and was incorporated in Connecticut in 1905. Recognized for our innovation, quality, and deep commitment to serving our customers for over 135 years, Hubbell is a world-class manufacturer of electrical and utility solutions, with more than 75 brands used around the world. We provide utility and electrical solutions that enable our customers to operate critical infrastructure reliably and efficiently, and we empower and energize communities through innovative solutions supporting energy infrastructure In Front of the Meter, on The Edge, and Behind the Meter. In Front of the Meter is where utilities transmit and distribute energy to their customers. The Edge connects utilities with owners and operators…
Risk factors HUBB lists in its 10-K
- Inflation and other unfavorable economic conditions may adversely affect our business results of operations and financial condition
- We operate in markets that are subject to competitive pressures that could affect selling prices or demand for our products
- Volatility in currency exchange rates may adversely affect our financial condition, results of operations and cash flows
- Our ability to effectively develop and introduce new products could adversely affect our ability to compete
- We manufacture and source products and materials from various countries throughout the world. A disruption in the availability, price or quality of these products or materials could adversely affect our operating results
- We may be required to recognize impairment charges for our goodwill and other intangible assets
- We engage in acquisitions and strategic investments and may encounter difficulty in obtaining appropriate acquisitions and in integrating these businesses
- We may not be able to successfully implement initiatives, including our continuing restructuring activities that improve productivity and streamline operations to control or reduce costs
- Our ability to access capital markets or failure to maintain our credit ratings may adversely affect our business
- Deterioration in the credit quality of, loss of, significant decline in business with, or pricing pressure from, our customers could have a material adverse effect on our operating results and financial condition
- We have outstanding indebtedness; our indebtedness may increase as we engage in acquisitions and other activities to support our growth strategies
- If the underlying investments of our defined benefit plans do not perform as expected, we may have to make additional contributions to these plans
- Evolving international tax frameworks may adversely affect our global tax position
- Given the interpretive and evolving nature of tax laws, actual tax payments may differ from those currently recorded
- Changes in U.S. and international trade policies may adversely impact our business and operating results; changes in U.S. trade policies could have a material adverse effect on us
- We could incur significant and/or unexpected costs in our efforts to successfully avoid, manage, defend and litigate intellectual property matters
- We are subject to litigation and environmental regulations that may adversely impact our operating results
- Our reputation and our ability to conduct business may be impaired by improper conduct by any of our employees, agents or business partners
- Regulations related to conflict-free minerals may cause us to incur additional expenses and may create challenges with our customers
- Our success depends on attracting and retaining qualified personnel
- We face the potential harms of natural disasters, terrorism, acts of war, international conflicts or other disruptions to our operations
- Global economic uncertainty could adversely affect us