Hubbell Incorporated (HUBB) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Hubbell Incorporated

Updated on October 31, 2026 · accounts published on October 27, 2026

A highly profitable industrial with record margins and a steadily growing dividend

Hubbell trades at a P/E of 24.8, 7 % below its ten-year median, after a record 21 % operating margin in fiscal 2025.

• Is Hubbell expensive or cheap? Hubbell's P/E of 24.8 is 7 % below its ten-year median and 4 % below its sector median.
• How is the business doing? Operating margin reached 21 % in fiscal 2025, the highest in 12 years, against a 15 % average for 2014-2025.
• How strong is the balance sheet? Hubbell has raised its dividend for 11 straight years and paid out only 32 % of fiscal 2025 earnings.
• What to expect from the next earnings? Next results on February 2, 2027: analysts expect EPS of $5.22, and Hubbell beat estimates in 7 of the last 8 quarters.
• Does Hubbell turn its margin into cash, and what multiple of the cycle does it trade at? Free cash flow equalled 99 % of net income in fiscal 2025, above the 85 % healthy mark for industrials.

Is Hubbell expensive or cheap?

Over the last 12 months Hubbell trades at a P/E of 24.8. That is 7 % below its ten-year median of 26.7 and 4 % below the 25.8 median of its sector (297 companies). Over the past decade the stock has traded at a lower P/E only 36 % of the time, in a range from 14.5 to 38.7. Its EV/EBITDA of 17.1× sits almost exactly on its seven-year average of 17.1×, and the free cash flow yield is 3.0 %. The shares are down 9 % over 12 months and trade 24 % below their 52-week high of $557.85. The multiple now sits in the lower half of its own decade.

How is the business doing?

Over the last 12 months revenue grew 4 % while EPS rose 15 %, so margins are doing most of the work. The operating margin is 20 % over the last 12 months. In fiscal 2025 it reached 21 %, the best of the past 12 fiscal years, against a 15 % average. Return on equity is 23 %. ROIC of 10.0 % is 0.9 points above the sector median of 9.1 % and has topped 10 % in seven of the last ten fiscal years, with a low of 9.0 % in 2020. Profitability has clearly stepped up, while returns on capital are solid without being exceptional.

How strong is the balance sheet?

Net debt was $40.86 per share at the end of fiscal 2025. That is about 10 % of the current share price and 1.6× EBITDA, comfortably under the 3× level considered healthy for industrials. Over the last 12 months debt to equity is 1.25 and the current ratio 1.53. The Altman Z-score of 5.3 sits well inside the safe zone above 2.99, and the Piotroski score of 7 out of 9 meets the high-quality mark. The dividend yields 1.3 %, has grown for 11 consecutive fiscal years and absorbs only 32 % of fiscal 2025 earnings, which leaves room for further increases.

What to expect from the next earnings?

On October 27, 2026 Hubbell reported EPS of $5.91, 2.8 % above the $5.75 analysts expected. That extends a record of beats in seven of the last eight quarters. For the quarter due on February 2, 2027, analysts expect EPS of $5.22. Estimates have barely moved: over the past 30 days the 2026 EPS consensus edged from $20.48 to $20.57, and the revenue consensus rose 0.6 %. Of the 17 analysts covering the company, 7 recommend buying, 9 holding and 1 selling. That is a cautious split for a company that has delivered this consistently.

Does Hubbell turn its margin into cash, and what multiple of the cycle does it trade at?

Industrial companies are semi-cyclical, so a single good or bad year can distort their profits. That is why the sector is judged on operating margin, cash conversion and multiples measured against the full cycle. Hubbell clears most of these bars. Revenue per share grew 10 % a year over fiscal 2020-2025, against a 6 % healthy threshold, and the margin is far above 12 %. Its ROIC of 10.0 % falls short of the 15 % benchmark, and capex at 2.7 % of revenue sits below the usual 4 % to 8 % range. Both its P/E of 24.8 and its EV/EBITDA of 17.1× are within 10 % of their long-run averages.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.