Orin
HUBBNYSE·Electrical Equipment & Parts

Hubbell Incorporated HUBB

Market cap $24.6BP/E 27.4× trailingGross margin 35.2%Reports Tue 27 Oct, before the open
$463.70
+4.87 (+1.06%)Wed close 16:00 ET
52-wk $403.82 – $565.50
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Orin's take
0.65conviction · moderate
Refreshed 2 Sep · take v8. A new filing or a print queues the next refresh.

Hubbell's pullback to $443.31 from prior levels near $511 has materially improved the risk/reward on a stock with accelerating fundamentals. Q2 2026 revenue grew 15.3% YoY to $1.71B with EPS of $4.51, and management raised FY2026 guidance to $20.25–$20.55 adjusted EPS, implying forward PE of roughly 21.6x — near peer median — despite superior margin expansion (FY2025 operating margin of 20.83% vs 12.69% in 2021) and durable secular tailwinds in grid modernization and data center demand.

With RSI at 32.4 and the stock trading below both its 50-day ($488.94) and 200-day ($485.15) moving averages, the oversold technical condition combined with strong earnings momentum and rising institutional interest (fund count up from 49 to 63 over four quarters) supports accumulation at these levels.

What could go wrong

  • Elevated leverage. Total debt rose to $2.61B as of FY2025 from $1.72B in FY2024, increasing balance sheet risk if end-market demand softens or rates remain elevated.
  • Persistent insider selling. Insiders are net sellers with -$41.9M in net value over 24 months and no cluster buys, suggesting limited insider conviction at current levels.
  • Valuation premium persists on EV/EBITDA. EV/EBITDA of 19.35x remains 31.7% above the peer median of 14.69x, leaving room for multiple compression if growth disappoints.
  • Margin compression risk. Q2 2026 gross margin of 35.8% (implied from $613M gross profit on $1.71B revenue) is strong but any reversion could pressure the premium multiple.

What would change my mind

Q3 2026 earnings beat with margin expansion. Q3 2026 revenue growth exceeds 12% YoY with operating margin above 21%bullish
Insider cluster buying. Multiple insiders purchase common stock (not deferred comp units) within a 30-day windowbullish
Guidance cut or demand deceleration. Management lowers FY2026 EPS guidance below $20.25 or reports quarterly revenue growth below 8% YoYbearish
Debt deterioration. Total debt increases further without commensurate revenue growth, pushing leverage ratios above comfortable thresholdsbearish

Where this comes from: Quarterly results, Q2 2026 (period ended 2026-06-30) · Seeking Alpha news article, published 2026-07-30 · Technicals as of 2026-09-01 · Derived metrics, FY2025 and FY2021. Orin's read on HUBB; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$1.8B0.0% of fund
Vanguard Portfolio Management$1.4B0.1% of fund
State Street$1.2B0.0% of fund
Massachusetts Financial Services /Ma/$833.4M0.3% of fund
Brasada Capital Management$784.8M0.1% of fund
Bank of New York Mellon$783.1M0.1% of fund

90 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 163 Form 4 filings, net −$40.0M. Of the 50 on hand, 0 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about HUBB

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Where it trades

vs its own 5y · Industrials
MetricNowOwn medianSector
P/E27.4×26.6×44.5×
EV/EBITDA20.1×18.6×
P/S3.94×3.28×
P/B6.3×6.1×

Its P/E sits 60th percentile of its own last 5 years (+0.51σ from its own mean).

What the price assumes

12.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

17 firms · 2026-09-23
Consensus target

$549

$503$600 · +18% against today's price

How they rate it
  • 7 buy or overweight
  • 9 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 23.8× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
HUBBHubbell Incorporated$24B27.4×20.1×35.2%14.5%24%
AYIAcuity Brands, Inc.$9B19.8×12.0×49.3%10.3%17%
DOVDover Corporation$25B22.6×15.0×39.6%13.5%15%
EFXEquifax Inc.$18B27.1×12.4×44.4%10.7%15%
EMEEMCOR Group, Inc.$33B23.5×14.7×19.7%7.7%38%
ODFLOld Dominion Freight Line, Inc.$37B34.2×20.2×31.7%19.4%25%
VLTOVeralto Corporation$23B24.0×18.2×60.2%17.3%33%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 15.1% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 19.4×FY25 26.7×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.7×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$534$465.84 · +15%2026-06-10
Levered DCF$481$465.84 · +3%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $463.70
52-week range$404 – $565
Analyst targets$503 – $600
Standard DCF$534 as of 2026-06-10, when it was $465.84
Levered DCF$481 as of 2026-06-10, when it was $465.84
At own 5y-median P/E (27×)$452
At 5y P/E range (23–29×)$391 – $493
At sector P/E (45×)$755

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.