ASX:HUB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with questionable track record.


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


Market Performance


7 Day Return

-3.8%

HUB

0.5%

AU Capital Markets

0.1%

AU Market


1 Year Return

6.8%

HUB

19.9%

AU Capital Markets

11.9%

AU Market

Return vs Industry: HUB underperformed the Australian Capital Markets industry which returned 19.9% over the past year.

Return vs Market: HUB underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

HUBIndustryMarket
7 Day-3.8%0.5%0.1%
30 Day-4.1%0.9%-1.1%
90 Day1.6%1.1%-1.4%
1 Year7.1%6.8%25.3%19.9%18.5%11.9%
3 Year137.0%135.6%87.8%62.6%36.4%18.1%
5 Year1164.8%1157.1%185.0%123.8%50.9%16.7%

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?

106.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HUB (A$12.32) is trading above our estimate of fair value (A$8.36)

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 (106.8x) compared to the Capital Markets industry average (18.4x).

PE vs Market: HUB is poor value based on its PE Ratio (106.8x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HUB is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: HUB is overvalued based on its PB Ratio (11.8x) compared to the AU Capital Markets industry average (2x).


Next Steps

Future Growth

How is HUB24 forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUB's forecast earnings growth (44% per year) is above the savings rate (2.3%).

Earnings vs Market: HUB's earnings (44% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: HUB's revenue (17.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: HUB's revenue (17.4% 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 (36.1%)


Next Steps

Past Performance

How has HUB24 performed over the past 5 years?

56.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HUB has become profitable over the past 5 years, growing earnings by 56.9% per year.

Accelerating Growth: HUB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HUB had negative earnings growth (-2.9%) over the past year, making it difficult to compare to the Capital Markets industry average (-2.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: HUB has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate HUB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is HUB24's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HUB has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HUB's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: HUB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HUB has a sufficient allowance for bad loans.

Low Risk Liabilities: HUB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HUB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HUB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HUB has an appropriate level of bad loans.


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HUB's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: HUB's dividend (0.42%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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

What is the CEO of HUB24's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Andrew Alcock 0

5.2yrs

Tenure

AU$1,027,934

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD705.71K) is about average for companies of similar size in the Australian market ($USD737.68K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: HUB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

Experienced Board: HUB's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: HUB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$3,570,30521 Oct 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares509,353
Max PriceAU$12.05
SellAU$2,719,79521 Oct 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares448,478
Max PriceAU$11.80
SellAU$14,732,35418 Oct 19
Hyperion Asset Management Limited
EntityCompany
Shares1,198,363
Max PriceAU$13.21
BuyAU$6,347,38718 Oct 19
Hyperion Asset Management Limited
EntityCompany
Shares553,292
Max PriceAU$11.49
SellAU$1,137,35602 Oct 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares90,037
Max PriceAU$12.63
BuyAU$1,575,19102 Oct 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares126,172
Max PriceAU$12.48
BuyAU$22,414,45923 Sep 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,823,765
Max PriceAU$12.29
SellAU$15,713,53323 Sep 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,274,363
Max PriceAU$12.33
BuyAU$112,70029 Aug 19
Bruce Higgins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceAU$11.27
BuyAU$2,094,27326 Aug 19
FMR LLC
EntityCompany
Shares189,113
Max PriceAU$11.80
SellAU$2,257,16118 Aug 19
UBS Asset Management
EntityCompany
Shares204,109
Max PriceAU$11.06
BuyAU$2,862,95318 Aug 19
UBS Asset Management
EntityCompany
Shares259,083
Max PriceAU$11.05
BuyAU$1,825,32708 Aug 19
UBS Asset Management
EntityCompany
Shares159,194
Max PriceAU$11.47
SellAU$2,566,96808 Aug 19
UBS Asset Management
EntityCompany
Shares222,018
Max PriceAU$11.56
SellAU$177,69502 Aug 19
UBS Asset Management
EntityCompany
Shares14,290
Max PriceAU$12.43
BuyAU$483,91902 Aug 19
UBS Asset Management
EntityCompany
Shares38,949
Max PriceAU$12.42
SellAU$5,743,39001 Aug 19
UBS Asset Management
EntityCompany
Shares484,052
Max PriceAU$11.87
BuyAU$7,172,82701 Aug 19
UBS Asset Management
EntityCompany
Shares604,311
Max PriceAU$11.87
BuyAU$24,17825 Jul 19
EC. Pohl & Co. Private Equity Limited
EntityCompany
Shares197,989
Max PriceAU$0.12
BuyAU$79,16725 Jul 19
ECP Asset Management Pty Ltd
EntityCompany
Shares566,968
Max PriceAU$0.14
BuyAU$10,044,87017 Jul 19
UBS Asset Management
EntityCompany
Shares892,470
Max PriceAU$11.26
SellAU$7,904,34817 Jul 19
UBS Asset Management
EntityCompany
Shares700,135
Max PriceAU$11.29
SellAU$213,05910 Jul 19
Hyperion Asset Management Limited
EntityCompany
Shares16,646
Max PriceAU$12.80
BuyAU$9,617,18910 Jul 19
Hyperion Asset Management Limited
EntityCompany
Shares741,312
Max PriceAU$15.01
SellAU$2,111,97407 Jul 19
FMR LLC
EntityCompany
Shares185,600
Max PriceAU$13.39
BuyAU$4,001,96204 Jul 19
UBS Asset Management
EntityCompany
Shares336,942
Max PriceAU$11.88
SellAU$1,906,80904 Jul 19
UBS Asset Management
EntityCompany
Shares159,590
Max PriceAU$11.95
BuyAU$3,107,68008 May 19
FMR LLC
EntityCompany
Shares223,407
Max PriceAU$15.43
SellAU$3,030,00007 May 19
Bruce Higgins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceAU$15.15
BuyAU$2,886,74003 May 19
Hyperion Asset Management Limited
EntityCompany
Shares192,114
Max PriceAU$15.03
BuyAU$9,641,25402 May 19
Hyperion Asset Management Limited
EntityCompany
Shares666,265
Max PriceAU$14.79
SellAU$837,02312 Apr 19
UBS Asset Management
EntityCompany
Shares56,381
Max PriceAU$14.85
BuyAU$610,32412 Apr 19
UBS Asset Management
EntityCompany
Shares41,001
Max PriceAU$14.89
BuyAU$6,956,26212 Apr 19
ECP Asset Management Pty Ltd
EntityCompany
Shares524,570
Max PriceAU$13.61
SellAU$1,758,45212 Apr 19
ECP Asset Management Pty Ltd
EntityCompany
Shares124,502
Max PriceAU$14.19
BuyAU$42,48309 Apr 19
UBS Asset Management
EntityCompany
Shares3,687
Max PriceAU$11.52
SellAU$37,460,56909 Apr 19
UBS Asset Management
EntityCompany
Shares2,864,052
Max PriceAU$13.08
BuyAU$9,223,97919 Mar 19
Hyperion Asset Management Limited
EntityCompany
Shares693,168
Max PriceAU$13.57
SellAU$3,863,75017 Mar 19
Ian Litster
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares275,000
Max PriceAU$14.05
BuyAU$49,95628 Feb 19
Anthony McDonald
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,230
Max PriceAU$11.81
BuyAU$118,10028 Feb 19
Bruce Higgins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceAU$11.81
SellAU$14,093,21614 Feb 19
FMR LLC
EntityCompany
Shares1,060,669
Max PriceAU$13.29
BuyAU$8,562,16914 Feb 19
FMR LLC
EntityCompany
Shares623,466
Max PriceAU$13.73
SellAU$1,514,99707 Feb 19
Hyperion Asset Management Limited
EntityCompany
Shares120,214
Max PriceAU$14.27
BuyAU$10,602,73907 Feb 19
Hyperion Asset Management Limited
EntityCompany
Shares814,022
Max PriceAU$13.18
BuyAU$25,027,07909 Nov 18
FMR LLC
EntityCompany
Shares1,925,160
Max PriceAU$13.00

Ownership Breakdown


Management Team

  • Jason Entwistle

    Director of Strategic Development

    • Tenure: 0yrs
    • Compensation: AU$818.27k
  • Andrew Alcock

    MD & Director

    • Tenure: 5.2yrs
    • Compensation: AU$1.03m
  • Joseph Gioffre

    Head of Operations

    • Tenure: 0yrs
    • Compensation: AU$345.14k
  • Mark Ballinger

    Head of Business Programs

    • Tenure: 6.2yrs
    • Compensation: AU$323.26k
  • Mark Goodrick

    CFO & Joint Company Secretary

    • Tenure: 0.8yrs
    • Compensation: AU$327.83k
  • Shane Muscat

    Head of Strategic Sales

    • Tenure: 1.5yrs
  • Paula Day

    Head of Strategic Key Accounts

    • Tenure: 1.5yrs
  • Greg Newman

    Head of Retail Distribution

    • Tenure: 1.5yrs
  • Craig Lawrenson

    Chief Operating Officer

    • Tenure: 2.2yrs
    • Compensation: AU$694.10k
  • Wendy McIntyre

    General Counsel and Compliance & Risk

    • Tenure: 0yrs

Board Members

  • Bruce Higgins (59yo)

    Chairman of the Board

    • Tenure: 7yrs
    • Compensation: AU$180.53k
  • Tony McDonald (60yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$127.32k
  • Paul Rogan

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$90.26k
  • Ian Litster

    Non Executive Director

    • Tenure: 7.1yrs
    • Compensation: AU$90.26k
  • Andrew Alcock

    MD & Director

    • Tenure: 5.2yrs
    • Compensation: AU$1.03m

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$785.412m
  • Shares outstanding: 62.53m
  • 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 Analysis2019/10/23 10:34
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.