Stock Analysis on Net
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.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Hubbell Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 120,300 43,300 60,700 65,000 12,300
State 24,200 13,000 16,100 16,600 21,800
International 23,500 22,700 17,400 25,400 17,800
Provision for income taxes, current 168,000 79,000 94,200 107,000 51,900
Federal (26,200) 8,800 2,400 8,600 35,000
State (3,900) 1,900 1,000 500 9,400
International 2,300 (1,500) (100) (3,000) 4,600
Provision for income taxes, deferred (27,800) 9,200 3,300 6,100 49,000
Provision for income taxes 140,200 88,200 97,500 113,100 100,900

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).

Item Description The company
Provision for income taxes, current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Hubbell Inc. provision for income taxes, current decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Provision for income taxes, deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Hubbell Inc. provision for income taxes, deferred increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hubbell Inc. provision for income taxes decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Effective Income Tax Rate (EITR)

Hubbell Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
United States federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 2.40% 2.50% 3.00% 2.80% 4.50%
Foreign income taxes -0.20% -0.50% -0.10% -0.70% -1.10%
Federal R&D Credit -0.80% -1.40% -1.50% -1.20% -1.00%
TCJA and related 0.00% 0.00% 0.00% 0.00% -1.30%
Other, net -1.10% -2.40% -0.90% -0.20% -0.50%
Consolidated effective income tax rate 21.30% 19.20% 21.50% 21.70% 21.60%

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).

Item Description The company
Consolidated effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hubbell Inc. consolidated effective income tax rate decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Components of Deferred Tax Assets and Liabilities

Hubbell Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Inventories 9,600 10,200 9,600 10,100 6,200
Lease liabilities 27,400 20,500 26,000 24,800 —
Income tax credits 22,800 22,800 27,800 26,900 24,500
Accrued liabilities 40,800 38,500 42,600 37,800 35,900
Pension 38,900 43,100 49,600 53,400 49,600
Basis difference in subsidiary — 25,100 — — —
Post retirement and post employment benefits 4,500 4,900 6,000 6,000 6,600
Stock-based compensation 6,900 6,700 7,400 9,700 13,100
Loss carryforwards 14,200 17,300 20,500 21,300 22,200
Capitalized research expenditures 18,400 — — — —
Miscellaneous other 16,400 17,000 16,400 11,900 8,800
Gross deferred tax assets 199,900 206,100 205,900 201,900 166,900
Valuation allowance (32,200) (32,600) (34,200) (29,000) (21,800)
Deferred tax assets, net of valuation allowance 167,700 173,500 171,700 172,900 145,100
Liability on undistributed foreign earnings (7,000) (7,900) (9,600) (8,600) (10,900)
Goodwill and intangibles (185,000) (205,200) (218,300) (212,300) (206,400)
Right-of-use assets (26,100) (19,500) (25,100) (24,200) —
Property, plant, and equipment (57,900) (50,400) (48,900) (48,400) (41,400)
Deferred tax liabilities (276,000) (283,000) (301,900) (293,500) (258,700)
Net deferred tax asset (liability) (108,300) (109,500) (130,200) (120,600) (113,600)

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).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hubbell Inc. gross deferred tax assets increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hubbell Inc. deferred tax assets, net of valuation allowance increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Hubbell Inc. net deferred tax asset (liability) increased from 2020 to 2021 and from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

Hubbell Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Non-current tax assets (included in Other long-term assets) 5,500 5,200 5,100 6,200 6,400
Non-current tax liabilities 113,800 114,700 135,300 126,800 120,000

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).

Item Description The company
Non-current tax assets (included in Other long-term assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Hubbell Inc. non-current tax assets (included in Other long-term assets) increased from 2020 to 2021 and from 2021 to 2022.
Non-current tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Hubbell Inc. non-current tax liabilities decreased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

Hubbell Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Less: Noncurrent deferred tax assets, net 5,500 5,200 5,100 6,200 6,400
Total assets (adjusted) 5,397,100 5,276,300 5,080,000 4,896,800 4,865,700
Adjustment to Total Liabilities
Total liabilities (as reported) 3,032,000 3,040,800 2,999,700 2,942,500 3,073,200
Less: Noncurrent deferred tax liabilities, net 113,800 114,700 135,300 126,800 120,000
Total liabilities (adjusted) 2,918,200 2,926,100 2,864,400 2,815,700 2,953,200
Adjustment to Total Hubbell Incorporated Shareholders’ Equity
Total Hubbell Incorporated shareholders’ equity (as reported) 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Less: Net deferred tax assets (liabilities) (108,300) (109,500) (130,200) (120,600) (113,600)
Total Hubbell Incorporated shareholders’ equity (adjusted) 2,469,200 2,339,300 2,200,200 2,067,700 1,894,200
Adjustment to Net Income Attributable To Hubbell Incorporated
Net income attributable to Hubbell Incorporated (as reported) 545,900 399,500 351,200 400,900 360,200
Add: Deferred income tax expense (benefit) (27,800) 9,200 3,300 6,100 49,000
Net income attributable to Hubbell Incorporated (adjusted) 518,100 408,700 354,500 407,000 409,200

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).

Hubbell Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Hubbell Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 11.03% 9.53% 8.39% 8.73% 8.04%
Adjusted net profit margin 10.47% 9.74% 8.47% 8.87% 9.13%
Total Asset Turnover
Reported total asset turnover 0.92 0.79 0.82 0.94 0.92
Adjusted total asset turnover 0.92 0.79 0.82 0.94 0.92
Financial Leverage
Reported financial leverage 2.29 2.37 2.46 2.52 2.74
Adjusted financial leverage 2.19 2.26 2.31 2.37 2.57
Return on Equity (ROE)
Reported ROE 23.12% 17.92% 16.97% 20.59% 20.23%
Adjusted ROE 20.98% 17.47% 16.11% 19.68% 21.60%
Return on Assets (ROA)
Reported ROA 10.10% 7.56% 6.91% 8.18% 7.39%
Adjusted ROA 9.60% 7.75% 6.98% 8.31% 8.41%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hubbell Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hubbell Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hubbell Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Profitability Ratio
Net profit margin1 11.03% 9.53% 8.39% 8.73% 8.04%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated 518,100 408,700 354,500 407,000 409,200
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Profitability Ratio
Adjusted net profit margin2 10.47% 9.74% 8.47% 8.87% 9.13%

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).

2022 Calculations

1 Net profit margin = 100 × Net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × 545,900 ÷ 4,947,900 = 11.03%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Net sales
= 100 × 518,100 ÷ 4,947,900 = 10.47%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hubbell Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Activity Ratio
Total asset turnover1 0.92 0.79 0.82 0.94 0.92
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Adjusted total assets 5,397,100 5,276,300 5,080,000 4,896,800 4,865,700
Activity Ratio
Adjusted total asset turnover2 0.92 0.79 0.82 0.94 0.92

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).

2022 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 4,947,900 ÷ 5,402,600 = 0.92

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 4,947,900 ÷ 5,397,100 = 0.92

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Total Hubbell Incorporated shareholders’ equity 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Solvency Ratio
Financial leverage1 2.29 2.37 2.46 2.52 2.74
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 5,397,100 5,276,300 5,080,000 4,896,800 4,865,700
Adjusted total Hubbell Incorporated shareholders’ equity 2,469,200 2,339,300 2,200,200 2,067,700 1,894,200
Solvency Ratio
Adjusted financial leverage2 2.19 2.26 2.31 2.37 2.57

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).

2022 Calculations

1 Financial leverage = Total assets ÷ Total Hubbell Incorporated shareholders’ equity
= 5,402,600 ÷ 2,360,900 = 2.29

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 5,397,100 ÷ 2,469,200 = 2.19

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Total Hubbell Incorporated shareholders’ equity 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Profitability Ratio
ROE1 23.12% 17.92% 16.97% 20.59% 20.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated 518,100 408,700 354,500 407,000 409,200
Adjusted total Hubbell Incorporated shareholders’ equity 2,469,200 2,339,300 2,200,200 2,067,700 1,894,200
Profitability Ratio
Adjusted ROE2 20.98% 17.47% 16.11% 19.68% 21.60%

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).

2022 Calculations

1 ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Total Hubbell Incorporated shareholders’ equity
= 100 × 545,900 ÷ 2,360,900 = 23.12%

2 Adjusted ROE = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 100 × 518,100 ÷ 2,469,200 = 20.98%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hubbell Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Profitability Ratio
ROA1 10.10% 7.56% 6.91% 8.18% 7.39%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Hubbell Incorporated 518,100 408,700 354,500 407,000 409,200
Adjusted total assets 5,397,100 5,276,300 5,080,000 4,896,800 4,865,700
Profitability Ratio
Adjusted ROA2 9.60% 7.75% 6.98% 8.31% 8.41%

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).

2022 Calculations

1 ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Total assets
= 100 × 545,900 ÷ 5,402,600 = 10.10%

2 Adjusted ROA = 100 × Adjusted net income attributable to Hubbell Incorporated ÷ Adjusted total assets
= 100 × 518,100 ÷ 5,397,100 = 9.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.