$404.09
arrow_drop_down0.13%Is HUBB a Buy or Sell based on AI Analysis?
Fundamental Analysis
Hubbell Inc. has a strong financial standing with a Price-to-Earnings (P/E) ratio of 27.62, indicating that investors are willing to pay $27.62 for every dollar of earnings. This suggests that the market values the company's growth potential and profitability. Additionally, the company's Return on Equity (ROE) of 29.13% reflects its ability to generate profit from shareholders' equity, highlighting strong management performance. The company also boasts a healthy Gross Margin of 35.14%, indicating efficient cost management and strong pricing power. This, coupled with a Net Profit Margin of 14.14%, demonstrates that the company is able to effectively convert revenue into profit. Furthermore, Hubbell's free cash flow margin of 13.31% indicates that the company is generating ample cash flow from its operations to reinvest in the business or distribute to shareholders. Moreover, Hubbell Inc. maintains a dividend yield of 1.27%, providing income to investors while still retaining capital for growth opportunities. The company's Price-to-Book (P/B) ratio of 7.17 suggests that the stock is valued at 7.17 times its book value, indicating potential undervaluation based on its assets. In addition, the company's solid Debt-to-Equity ratio of 0.79 signifies an optimal balance between debt and equity financing, reducing financial risk and enhancing investor confidence. Furthermore, the Enterprise Value to EBITDA ratio of 19.3 indicates the company's ability to generate earnings before interest, taxes, depreciation, and amortization relative to its market value. Overall, these fundamental indicators point towards Hubbell Inc.'s strong financial health and sustainability in the market.
Positive Development
Hubbell Inc has been recognized as one of the 2024 World's Most Ethical Companies®, which is a testament to the company's commitment to ethical practices. The company's dividend yield has been reported to be around 3.28%, which can attract dividend-focused investors. The company's price-to-earnings ratio (PE) is relatively low at 23.2139, indicating that it may be undervalued.
Negative Development
Insider selling by the President of Electrical Solutions Mark Mikes of Hubbell Inc on February 12, 2024, has raised concerns about the company's future outlook. The company's price-to-book ratio (PB) is relatively high at 6.1307, indicating that the company may be overvalued. The company's net debt to total capital ratio is relatively high at 0.3596, indicating that the company may be highly leveraged.
Technical Analysis
Hubbell Inc (HUBB) currently has a technical rating of SELL, with various technical indicators signaling a potential downward trend. The stock has a seven-day price change percent of 5.3% and a one-month price change percent of 10.46%, suggesting recent volatility in the price movement. Additionally, the stock's price to free cashflow ratio is 29.08, indicating that investors may be paying a premium for the company's cashflow. Furthermore, the stock's technical analysis shows that there are four technical sell indicators for the month, including RSI, CCI, WILLR, and STOCHRSI. This may indicate that the stock is currently overbought and due for a correction. On the other hand, there is only one technical buy indicator for the month, being ATR. Overall, investors should closely monitor these technical indicators to make informed decisions about trading HUBB stock.
Conclusion and recommendation
Based on the data provided for Hubbell Inc, it is evident that the company is performing well in various aspects. With a current stock price of $387.74 and a market cap of $20.79B, Hubbell Inc has shown strong financial stability. Additionally, the company has a solid track record of growth, with a five-year price change percent of 231.01% and a three-months price change percent of 27.85%. Moreover, Hubbell Inc has a healthy balance sheet, with a debt to equity ratio of 0.79 and a current ratio of 1.64, indicating the company's ability to meet its short-term obligations. In conclusion, based on the data provided, I would recommend considering Hubbell Inc as a potential investment opportunity. The company has shown consistent growth and financial stability, with strong performance metrics such as return on equity of 29.13% and a solid operating margin of 16.91%. Additionally, the company pays dividends regularly, with a dividend yield of 1.27%, making it an attractive option for income-seeking investors. Overall, Hubbell Inc appears to be a well-managed company with growth potential and a strong financial position, making it a promising investment choice in the industrials sector.