Stock Analysis on Net

Hubbell Inc. (NYSE:HUBB)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Hubbell Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 597,801 458,435 403,273 472,549 591,651
Invested capital2 4,504,100 4,298,100 4,325,800 4,209,500 4,206,535
Performance Ratio
ROIC3 13.27% 10.67% 9.32% 11.23% 14.07%
Benchmarks
ROIC, Competitors4
Boeing Co. -5.73% -5.36% -17.44%
Caterpillar Inc. 13.41% 12.58% 6.24%
Eaton Corp. plc 8.00% 7.84% 5.61%
GE Aerospace 2.73% -2.53% 5.22%
Honeywell International Inc. 11.54% 12.33% 10.94%
Lockheed Martin Corp. 21.60% 22.51% 25.67%
RTX Corp. 4.11% 4.41% -1.38%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 597,801 ÷ 4,504,100 = 13.27%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Hubbell Inc. ROIC improved from 2020 to 2021 and from 2021 to 2022.

Decomposition of ROIC

Hubbell Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2022 13.27% = 15.61% × 1.10 × 76.94%
Dec 31, 2021 10.67% = 13.14% × 0.97 × 83.44%
Dec 31, 2020 9.32% = 12.20% × 0.97 × 78.95%
Dec 31, 2019 11.23% = 12.96% × 1.09 × 79.39%
Dec 31, 2018 14.07% = 14.66% × 1.07 × 89.72%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2022 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Hubbell Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 597,801 458,435 403,273 472,549 591,651
Add: Cash operating taxes2 179,191 90,971 107,537 122,697 67,810
Net operating profit before taxes (NOPBT) 776,993 549,406 510,810 595,246 659,460
 
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Add: Increase (decrease) in contract liabilities, deferred revenue 29,100 (13,100) (100) 3,300 17,500
Adjusted net sales 4,977,000 4,181,000 4,185,900 4,594,300 4,499,200
Profitability Ratio
OPM3 15.61% 13.14% 12.20% 12.96% 14.66%
Benchmarks
OPM, Competitors4
Boeing Co. -3.49% -3.17% -20.02%
Caterpillar Inc. 17.42% 19.09% 11.64%
Eaton Corp. plc 14.81% 15.90% 11.40%
GE Aerospace 4.46% -2.35% 12.65%
Honeywell International Inc. 19.83% 21.58% 20.40%
Lockheed Martin Corp. 11.60% 11.85% 13.19%
RTX Corp. 10.88% 9.65% -1.08%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2022 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 776,993 ÷ 4,977,000 = 15.61%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Hubbell Inc. OPM improved from 2020 to 2021 and from 2021 to 2022.

Turnover of Capital (TO)

Hubbell Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Add: Increase (decrease) in contract liabilities, deferred revenue 29,100 (13,100) (100) 3,300 17,500
Adjusted net sales 4,977,000 4,181,000 4,185,900 4,594,300 4,499,200
 
Invested capital1 4,504,100 4,298,100 4,325,800 4,209,500 4,206,535
Efficiency Ratio
TO2 1.10 0.97 0.97 1.09 1.07
Benchmarks
TO, Competitors3
Boeing Co. 1.31 1.26 1.22
Caterpillar Inc. 1.03 0.87 0.72
Eaton Corp. plc 0.67 0.67 0.65
GE Aerospace 1.10 0.99 0.63
Honeywell International Inc. 0.76 0.72 0.67
Lockheed Martin Corp. 2.48 2.34 2.33
RTX Corp. 0.59 0.56 0.49

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Invested capital. See details »

2 2022 Calculation
TO = Adjusted net sales ÷ Invested capital
= 4,977,000 ÷ 4,504,100 = 1.10

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Hubbell Inc. TO improved from 2020 to 2021 and from 2021 to 2022.

Effective Cash Tax Rate (CTR)

Hubbell Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 597,801 458,435 403,273 472,549 591,651
Add: Cash operating taxes2 179,191 90,971 107,537 122,697 67,810
Net operating profit before taxes (NOPBT) 776,993 549,406 510,810 595,246 659,460
Tax Rate
CTR3 23.06% 16.56% 21.05% 20.61% 10.28%
Benchmarks
CTR, Competitors4
Boeing Co.
Caterpillar Inc. 25.42% 24.06% 25.70%
Eaton Corp. plc 19.89% 26.02% 24.39%
GE Aerospace 44.47% 34.06%
Honeywell International Inc. 23.25% 20.13% 20.43%
Lockheed Martin Corp. 24.95% 18.89% 16.51%
RTX Corp. 36.10% 18.64%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 179,191 ÷ 776,993 = 23.06%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Hubbell Inc. CTR decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.