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.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Hubbell Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Add: Net income attributable to noncontrolling interest 5,500 6,100 4,800 6,500 5,900
Less: Income from discontinued operations, net of tax 34,600 34,500
Add: Income tax expense 140,200 88,200 97,500 113,100 100,900
Earnings before tax (EBT) 657,000 459,300 453,500 520,500 467,000
Add: Interest expense, net 49,600 54,700 60,300 69,400 72,400
Earnings before interest and tax (EBIT) 706,600 514,000 513,800 589,900 539,400
Add: Depreciation and amortization 148,500 149,100 157,600 151,000 148,400
Earnings before interest, tax, depreciation and amortization (EBITDA) 855,100 663,100 671,400 740,900 687,800

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).


Net Income Attributable to Hubbell Incorporated
Net income showed an overall increasing trend over the five-year period. Starting at 360,200 thousand US dollars in 2018, it rose to 400,900 thousand in 2019, then experienced a decline to 351,200 thousand in 2020. Following this dip, net income recovered substantially, increasing to 399,500 thousand in 2021 and reaching the highest value of 545,900 thousand in 2022. The significant growth between 2021 and 2022 suggests improved profitability or operational efficiency.
Earnings Before Tax (EBT)
EBT exhibited a similar pattern to net income, starting at 467,000 thousand US dollars in 2018 and increasing to 520,500 thousand in 2019. It then fell to 453,500 thousand in 2020, followed by a slight recovery to 459,300 thousand in 2021. In 2022, EBT increased markedly to 657,000 thousand, the highest in the period, indicating enhanced earnings performance before tax obligations.
Earnings Before Interest and Tax (EBIT)
EBIT values mirrored the trends seen in EBT but at higher absolute levels, consistent with the exclusion of interest expenses. The figure started at 539,400 thousand US dollars in 2018, grew to 589,900 thousand in 2019, and declined to 513,800 thousand in 2020. It remained relatively stable in 2021 at 514,000 thousand before a substantial rise to 706,600 thousand in 2022. This suggests that operating earnings recovered strongly after the 2020 dip and reached new highs in 2022.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
EBITDA, representing the broadest earnings measure, followed the same general dynamics. From 687,800 thousand US dollars in 2018, it increased to 740,900 thousand in 2019, then declined to 671,400 thousand in 2020. It slightly decreased again to 663,100 thousand in 2021 but saw a significant rebound to 855,100 thousand in 2022. The considerable 2022 growth indicates strong operational cash flow generation capability relative to previous years.

Enterprise Value to EBITDA Ratio, Current

Hubbell Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 15,963,414
Earnings before interest, tax, depreciation and amortization (EBITDA) 855,100
Valuation Ratio
EV/EBITDA 18.67
Benchmarks
EV/EBITDA, Competitors1
Boeing Co.
Caterpillar Inc. 14.52
Eaton Corp. plc 27.83
GE Aerospace 29.68
Honeywell International Inc. 16.54
Lockheed Martin Corp. 13.17
RTX Corp. 19.74
EV/EBITDA, Sector
Capital Goods 27.96
EV/EBITDA, Industry
Industrials 21.97

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Hubbell Inc., historical EV/EBITDA 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)
Enterprise value (EV)1 13,894,874 11,134,226 10,260,754 9,419,838 8,089,607
Earnings before interest, tax, depreciation and amortization (EBITDA)2 855,100 663,100 671,400 740,900 687,800
Valuation Ratio
EV/EBITDA3 16.25 16.79 15.28 12.71 11.76
Benchmarks
EV/EBITDA, Competitors4
Boeing Co.
Caterpillar Inc. 13.86 12.43 19.87
Eaton Corp. plc 19.18 17.06 22.11
GE Aerospace 14.82 95.57 9.35
Honeywell International Inc. 18.01 15.57 20.21
Lockheed Martin Corp. 14.98 11.97 9.97
RTX Corp. 14.92 15.48 41.71
EV/EBITDA, Sector
Capital Goods 19.01 19.87 25.02
EV/EBITDA, Industry
Industrials 16.44 16.30 30.80

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 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 13,894,874 ÷ 855,100 = 16.25

4 Click competitor name to see calculations.


Enterprise Value (EV)
The enterprise value increased consistently over the analyzed period, rising from approximately 8.09 billion US dollars at the end of 2018 to about 13.89 billion US dollars by the end of 2022. This growth suggests a steady appreciation in the company’s overall valuation or market capitalization over these years.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
EBITDA exhibited some fluctuation during the period. It increased from approximately 688 million US dollars in 2018 to a peak of around 741 million in 2019. Following this, there was a decline to about 671 million in 2020 and remained relatively stable but slightly lower at 663 million in 2021. In 2022, EBITDA increased significantly to approximately 855 million US dollars, reaching the highest level in the five-year span.
EV/EBITDA Ratio
The EV/EBITDA ratio increased steadily from 11.76 in 2018 to a peak of 16.79 in 2021, indicating rising valuation multiples relative to earnings. In 2022, the ratio slightly decreased to 16.25, despite the higher EBITDA observed that year. This indicates that while earning power improved notably in 2022, the enterprise value had increased at a somewhat faster rate during the earlier years, leading to a high but slightly moderated multiple in the latest year.