Morningstar Rating

Stock Research and Analysis

by Keith Schoonmaker, CFA

Bulls Say

Hubbell's ability to generate economic profits and free cash flow has allowed it to pay out almost 40% of its earnings in dividends during the past five years.
The firm has expanded its power segment, which generates higher margins than other segments.
Customers are leaning heavily on Hubbell's lighting division to make the transition to energy-efficient lighting. Read more 

Bears Say

Owners of Hubbell's more heavily traded B class shares have limited voting power relative to the A class shares, which control more than 70% of the company's voting authority.
By sticking to core North American markets, Hubbell is forgoing major growth opportunities in emerging markets, potentially limiting earnings growth potential relative to peers.
The construction recovery in the United States has yet to provide a meaningful lift to Hubbell's earnings, and with the company's products at the end of the build cycle, revenue from the recovery may be several quarters away. Read more 

Management

David Nord was named CEO in December 2012 after spending roughly six months as COO and seven years as CFO. Nord replaced Tim Powers, who recently retired, but remains as chairman of the board of directors. The company has two classes of stock, with   Read more 

Profile

Hubbell manufactures and distributes electrical products and lighting used in residential, commercial, and industrial applications. Hubbell generates more than 85% of its   Read more 

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