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HUB

HUB24ASX:HUB Stock Report

Market Cap

AU$2.2b

7D

-1.4%

1Y

52.4%

Updated

22 Oct, 2021

Data

Company Financials +
HUB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance2/6
Financial Health4/6
Dividends0/6

HUB Overview

HUB24 Limited, a financial services company, provides wealth management superannuation investment platforms, technology, and data solutions in Australia.

HUB24 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HUB24
Historical stock prices
Current Share PriceAU$32.59
52 Week HighAU$19.09
52 Week LowAU$34.72
Beta0.63
1 Month Change7.88%
3 Month Change31.15%
1 Year Change52.36%
3 Year Change194.67%
5 Year Change520.76%
Change since IPO171.58%

Recent News & Updates

Shareholder Returns

HUBAU Capital MarketsAU Market
7D-1.4%2.8%0.7%
1Y52.4%26.3%21.4%

Return vs Industry: HUB exceeded the Australian Capital Markets industry which returned 26.3% over the past year.

Return vs Market: HUB exceeded the Australian Market which returned 21.4% over the past year.

Price Volatility

Is HUB's price volatile compared to industry and market?
HUB volatility
HUB Beta0.63
Industry Beta0.99
Market Beta1

Stable Share Price: HUB is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HUB's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007391Andrew Alcockhttps://www.hub24.com.au

HUB24 Limited, a financial services company, provides wealth management superannuation investment platforms, technology, and data solutions in Australia. It operates through Platform and Tech Solutions segments. The company develops and operates HUB24, an investment and superannuation platform, which is a portfolio administration services for financial advisers, stockbrokers, accountants and their clients, and direct consumers.

HUB24 Fundamentals Summary

How do HUB24's earnings and revenue compare to its market cap?
HUB fundamental statistics
Market CapAU$2.23b
Earnings (TTM)AU$8.95m
Revenue (TTM)AU$109.07m

249.2x

P/E Ratio

20.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HUB income statement (TTM)
RevenueAU$109.07m
Cost of RevenueAU$10.57m
Gross ProfitAU$98.51m
ExpensesAU$89.56m
EarningsAU$8.95m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.13
Gross Margin90.31%
Net Profit Margin8.20%
Debt/Equity Ratio6.9%

How did HUB perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

74%

Payout Ratio

Valuation

Is HUB24 undervalued compared to its fair value and its price relative to the market?

249.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HUB (A$32.59) is trading above our estimate of fair value (A$27.15)

Significantly Below Fair Value: HUB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HUB is poor value based on its PE Ratio (249.2x) compared to the Australian Capital Markets industry average (17.5x).

PE vs Market: HUB is poor value based on its PE Ratio (249.2x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: HUB is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: HUB is overvalued based on its PB Ratio (12.3x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is HUB24 forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

32.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUB's forecast earnings growth (32.1% per year) is above the savings rate (1.9%).

Earnings vs Market: HUB's earnings (32.1% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HUB's revenue (19.6% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: HUB's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUB's Return on Equity is forecast to be high in 3 years time (25.3%)


Past Performance

How has HUB24 performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUB has high quality earnings.

Growing Profit Margin: HUB's current net profit margins (8.2%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: HUB has become profitable over the past 5 years, growing earnings by 2.7% per year.

Accelerating Growth: HUB's earnings growth over the past year (1.5%) is below its 5-year average (2.7% per year).

Earnings vs Industry: HUB earnings growth over the past year (1.5%) underperformed the Capital Markets industry 12.8%.


Return on Equity

High ROE: HUB's Return on Equity (4.9%) is considered low.


Financial Health

How is HUB24's financial position?


Financial Position Analysis

Short Term Liabilities: HUB's short term assets (A$82.7M) exceed its short term liabilities (A$30.9M).

Long Term Liabilities: HUB's short term assets (A$82.7M) exceed its long term liabilities (A$17.1M).


Debt to Equity History and Analysis

Debt Level: HUB's debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HUB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HUB's debt is well covered by operating cash flow (153.3%).

Interest Coverage: Insufficient data to determine if HUB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is HUB24 current dividend yield, its reliability and sustainability?

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HUB's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: HUB's dividend (0.34%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: HUB is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: HUB is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HUB is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HUB's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Andrew Alcock

8.25yrs

Tenure

AU$1,467,941

Compensation

Mr. Andrew Alcock, B BUS, GAICD has been the Managing Director of HUB24 Limited since July 29, 2013. Mr. Alcock served as Chief Executive Officer of HUB24 Limited from July 31, 2013 to August 2014. Mr. Alc...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.10M) is about average for companies of similar size in the Australian market ($USD1.38M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HUB's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: HUB's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HUB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

HUB24 Limited's employee growth, exchange listings and data sources


Key Information

  • Name: HUB24 Limited
  • Ticker: HUB
  • Exchange: ASX
  • Founded: 2007
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: AU$2.230b
  • Shares outstanding: 68.41m
  • Website: https://www.hub24.com.au

Number of Employees


Location

  • HUB24 Limited
  • 7 Macquarie Place
  • Level 2
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:42
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.