F

Hubbell Inc — Earnings Quality Grade F

HUBB · Industrials

Major red flags

Revenue
$5.8B
2025
Net Income
$887M
2025
Gross Margin
35.3%
Free Cash Flow
$875M
01

Screening Summary

12
Passed
3
Watch
2
Failed
-2.47
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 55 days, change +4 days YoY

!
A2AR vs Revenue Growth

AR growth 12.7% exceeds revenue growth 3.8%

A3Revenue vs CFFO

Revenue 3.8%, CFFO 3.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 7.3% vs COGS 1.5%. Normal

B2CapEx vs Revenue

CapEx growth -14.0% vs revenue 3.8%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 41.4%. Normal

B4Gross Margin

Gross margin 35.3%, change +1.5pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.16. Profits backed by cash

C2Free Cash Flow

FCF $0.9B, FCF/NI = 0.99

C3Accruals Ratio

Accruals ratio = -1.7%. Low accruals

C4Cash vs Debt

Cash $0.5B covers only 20% of debt $2.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $4.5B = 116% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.8x. Healthy

!
D3Soft Asset Growth

Other assets grew 21.6% vs revenue 3.8%

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change 24% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.47 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-2.47
-4.0 Clean-2.22 Grey-1.78 Danger0
1.086
DSRI
AR growing faster than revenue?
0.959
GMI
Gross margin declining?
1.033
AQI
Asset quality deteriorating?
1.038
SGI
Revenue growth rate
1.148
DEPI
Depreciation slowing?
1.014
SGAI
SG&A ratio changing?
-0.0173
TATA
Accruals level
1.086
LVGI
Leverage increasing?
05

Altman Z-Score

4.4
Safe Zone
0 Distress1.102.605.0+ Safe
0.1319
Liquidity
0.505
Cumulative profit
0.1438
Operating efficiency
0.8803
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09

Hubbell Inc (HUBB) Earnings Quality Grade F — EarningsGrade