US Equities Analysis

HUBB — Hubbell Incorporated

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 17.75%
Profit Margins 15.1%
Return on Equity 25.82%
Return on Assets 10.2%
Free Float 0.05B
Dividend Yield 1.10%
Short Int % Utilisation 5.98%

2.2 Growth

Metric Value
Revenue Growth 11.1%
Free Cash Flow 0.54B
EBITDA 18.37 (Ratio)
Enterprise Value 26.94B
EV/Revenue 4.49
EV/EBITDA 18.37

Revenue growth of 11.1% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 27.40%
Risk / Std Dev (Ann.)* 31.58%
1-Year Price Return* 21.02%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $511.39
52-Week Range $403.82 – $565.50
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $5.84B
Prior annual revenue $5.63B
EBIT $1.18B
Tax rate 20.30%
NOPAT = EBIT × (1 − tax rate) $943.01M
Forecast start-growth basis 3.84%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $943.01M
Add: depreciation & amortisation $206.10M
Less: capital expenditure -$155.10M
Less/(add): working-capital cash-flow movement -$56.30M
Current unlevered FCFF $937.71M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 3.84% $979.22M $214.01M -$161.05M -$58.46M $973.71M $932.56M
2 3.50% $1.01B $221.51M -$180.40M -$60.51M $994.13M $873.33M
3 3.17% $1.05B $228.53M -$200.26M -$62.43M $1.01B $815.06M
4 2.83% $1.08B $235.01M -$220.47M -$64.20M $1.03B $758.06M
5 2.50% $1.10B $240.89M -$240.89M -$65.80M $1.04B $702.62M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.90
Cost of equity 9.66%
Pre-tax cost of debt 3.05%
WACC 9.02%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $16.29B
Implied terminal EV / EBITDA 10.03x
Terminal value as % of enterprise value 72.15%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $4.08B
Present value of terminal value $10.58B
Indicated enterprise value $14.66B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $14.66B
Less: gross interest-bearing debt $2.49B
Add: cash and equivalents $497.90M
Add: affiliate investments $0.00
Less: minority interests $10.00M
Indicated common equity value $12.66B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 53,500,000.00
Share-count basis reported diluted weighted-average shares
Current market price $488.67
DCF indicative value per share $236.61
Indicative value vs. market price -51.58%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:37:07.439608 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

us-equity stock equity hubb industrials industrial-machinery--supplies--components nasdaq