ASX:HUB

Stock Analysis Report

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Executive Summary

HUB24 Limited, together with its subsidiaries, provides wealth management solutions for the financial services industry in Australia. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has HUB24's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HUB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

HUB

0.5%

AU Capital Markets

-0.5%

AU Market


1 Year Return

73.3%

HUB

-0.4%

AU Capital Markets

-6.2%

AU Market

Return vs Industry: HUB exceeded the Australian Capital Markets industry which returned 0.8% over the past year.

Return vs Market: HUB exceeded the Australian Market which returned -5.4% over the past year.


Shareholder returns

HUBIndustryMarket
7 Day-0.4%0.5%-0.5%
30 Day25.2%9.1%6.8%
90 Day59.1%5.0%4.4%
1 Year74.5%73.3%3.3%-0.4%-2.9%-6.2%
3 Year144.6%141.4%35.1%18.2%17.9%2.9%
5 Year641.3%631.7%68.1%33.4%43.9%14.6%

Price Volatility Vs. Market

How volatile is HUB24's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

165.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HUB (A$21.73) is trading above our estimate of fair value (A$9.87)

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 (165.5x) compared to the AU Capital Markets industry average (21.4x).

PE vs Market: HUB is poor value based on its PE Ratio (165.5x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: HUB is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: HUB is overvalued based on its PB Ratio (18.2x) compared to the AU Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is HUB24 forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUB's forecast earnings growth (28.9% per year) is above the savings rate (2.3%).

Earnings vs Market: HUB's earnings (28.9% per year) are forecast to grow faster than the Australian market (17.4% per year).

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

Revenue vs Market: HUB's revenue (13.9% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: HUB's revenue (13.9% 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 (33.8%)


Next Steps

Past Performance

How has HUB24 performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUB has high quality earnings.

Growing Profit Margin: HUB's current net profit margins (7.4%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: HUB has become profitable over the past 5 years, growing earnings by 32.8% per year.

Accelerating Growth: HUB's earnings growth over the past year (14.6%) is below its 5-year average (32.8% per year).

Earnings vs Industry: HUB earnings growth over the past year (14.6%) exceeded the Capital Markets industry -7.9%.


Return on Equity

High ROE: HUB's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is HUB24's financial position?


Financial Position Analysis

Short Term Liabilities: HUB's short term assets (A$45.7M) exceed its short term liabilities (A$14.9M).

Long Term Liabilities: HUB's short term assets (A$45.7M) exceed its long term liabilities (A$8.1M).


Debt to Equity History and Analysis

Debt Level: HUB is debt free.

Reducing Debt: HUB has not had any debt for past 5 years.

Debt Coverage: HUB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HUB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HUB's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: HUB's dividend (0.32%) is low compared to the top 25% of dividend payers in the Australian market (5.43%).


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?

2.5yrs

Average management tenure


CEO

Andrew Alcock

7.25yrs

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 ($USD1.04M) is about average for companies of similar size in the Australian market ($USD927.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Alcock
MD & Director7.25yrsAU$1.47m1.49%
A$ 20.2m
Debbie Last
Interim CFO & Joint Company Secretary0.58yrAU$158.40kno data
Craig Lawrenson
Chief Operating Officer3.17yrsAU$853.04k0.00051%
A$ 6.9k
Jason Entwistle
Director of Strategic Developmentno dataAU$1.26m2.18%
A$ 29.4m
Wendy McIntyre
General Counsel and Compliance & Riskno datano datano data
Joseph Gioffre
Head of Operationsno dataAU$345.14kno data
Mark Ballinger
Head of Business Programs7.17yrsAU$323.26kno data
Shane Muscat
Head of Strategic Sales2.5yrsno datano data
Paula Day
Head of Strategic Key Accounts2.5yrsno datano data
Greg Newman
Head of Retail Distribution2.5yrsno datano data
Paul Howard
Joint Company Secretary1.25yrsno datano data

2.5yrs

Average Tenure

Experienced Management: HUB's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Alcock
MD & Director7.25yrsAU$1.47m1.49%
A$ 20.2m
Bruce Higgins
Chairman of the Board8yrsAU$210.67k1.28%
A$ 17.3m
Anthony McDonald
Non-Executive Director5.08yrsAU$181.64k0.028%
A$ 372.7k
Paul Rogan
Non-Executive Director2.83yrsAU$101.59k0.056%
A$ 750.7k
Ruth Stringer
Non-Executive Director0.67yrAU$38.75k0.0040%
A$ 54.7k
Ian Litster
Non Executive Director8.08yrsAU$98.25k5.21%
A$ 70.4m

5.6yrs

Average Tenure

Experienced Board: HUB's board of directors are considered experienced (5.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HUB24 Limited's company bio, 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$1.351b
  • Shares outstanding: 62.98m
  • Website: https://www.hub24.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2007
HUBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2007

Biography

HUB24 Limited, together with its subsidiaries, provides wealth management solutions for the financial services industry in Australia. It operates through Platform, Licensee, and IT Services segments. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:34
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.