Topic: How To Invest

Hi Pat: May I have your analysis of Hubbell Inc., a player in the electrical marketplace? Thank you.

Article Excerpt

Hubbell Inc., $108.30, symbol HUB.B on New York (Shares outstanding: 59.1 million; Market cap: $6.3 billion; www.hubbell.com), operates through two segments: Electrical (69% of sales) and Power (31%). The Electrical division sells wiring and similar products, like cable reels, connectors and high-voltage test systems, to industrial and residential customers. It also sells light fixtures and controls for indoor and outdoor use. The Power business makes distribution, transmission, substation and telecommunication products, mainly for the utility industry. In the three months ended September 30, 2013, Hubbell’s revenue rose 5.9%, to $835.9 million from $789.7 million a year earlier. Earnings per share gained 11.7%, to $1.62 from $1.45. Hubbell holds cash of $640.9 million, or $12.35 a share. Its $597.1 million of long-term debt is a low 9% of its $6.3-billion market cap. The stock trades at 20.3 times Hubbell’s latest 12 months of earnings. The company recently raised its dividend by 11.1%, to $0.50 a quarter from $0.45. It now yields 1.9%. In 2014,…