company background image
HUBC

Hub PowerKASE:HUBC Stock Report

Market Cap

PK₨99.8b

7D

2.6%

1Y

-3.8%

Updated

26 Oct, 2021

Data

Company Financials +
HUBC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance6/6
Financial Health4/6
Dividends5/6

HUBC Overview

The Hub Power Company Limited operates as an independent power producer in Pakistan.

Price History & Performance

Summary of all time highs, changes and price drops for Hub Power
Historical stock prices
Current Share PricePK₨76.93
52 Week HighPK₨72.70
52 Week LowPK₨93.00
Beta0.74
1 Month Change2.99%
3 Month Change-0.45%
1 Year Change-3.82%
3 Year Change-17.48%
5 Year Change-30.06%
Change since IPO467.75%

Recent News & Updates

Shareholder Returns

HUBCPK Renewable EnergyPK Market
7D2.6%0.2%1.3%
1Y-3.8%-4.2%0.2%

Return vs Industry: HUBC matched the PK Renewable Energy industry which returned -3.5% over the past year.

Return vs Market: HUBC underperformed the PK Market which returned -0.9% over the past year.

Price Volatility

Is HUBC's price volatile compared to industry and market?
HUBC volatility
HUBC Beta0.74
Industry Beta0.64
Market Beta1

Stable Share Price: HUBC is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HUBC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991744Kamran Kamalhttps://www.hubpower.com

The Hub Power Company Limited operates as an independent power producer in Pakistan. The company operates through three segments: Power Generation, Operations and Maintenance, and Investments. It develops, owns, operates, and maintains power stations.

Hub Power Fundamentals Summary

How do Hub Power's earnings and revenue compare to its market cap?
HUBC fundamental statistics
Market CapPK₨99.79b
Earnings (TTM)PK₨33.69b
Revenue (TTM)PK₨54.64b

3.0x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HUBC income statement (TTM)
RevenuePK₨54.64b
Cost of RevenuePK₨21.77b
Gross ProfitPK₨32.87b
Expenses-PK₨817.37m
EarningsPK₨33.69b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)25.97
Gross Margin60.16%
Net Profit Margin61.66%
Debt/Equity Ratio80.2%

How did HUBC perform over the long term?

See historical performance and comparison

Dividends

15.6%

Current Dividend Yield

46%

Payout Ratio

Valuation

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

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUBC (PKR76.93) is trading below our estimate of fair value (PKR133.86)

Significantly Below Fair Value: HUBC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HUBC is good value based on its PE Ratio (3x) compared to the PK Renewable Energy industry average (3.7x).

PE vs Market: HUBC is good value based on its PE Ratio (3x) compared to the PK market (7.8x).


Price to Earnings Growth Ratio

PEG Ratio: HUBC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HUBC is overvalued based on its PB Ratio (1x) compared to the PK Renewable Energy industry average (0.4x).


Future Growth

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

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUBC's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: HUBC's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: HUBC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HUBC's revenue is expected to decline over the next 3 years (-6.9% per year).

High Growth Revenue: HUBC's revenue is forecast to decline over the next 3 years (-6.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUBC's Return on Equity is forecast to be high in 3 years time (27.3%)


Past Performance

How has Hub Power performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUBC has high quality earnings.

Growing Profit Margin: HUBC's current net profit margins (61.7%) are higher than last year (51.8%).


Past Earnings Growth Analysis

Earnings Trend: HUBC's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: HUBC's earnings growth over the past year (34.5%) exceeds its 5-year average (26.1% per year).

Earnings vs Industry: HUBC earnings growth over the past year (34.5%) exceeded the Renewable Energy industry -30%.


Return on Equity

High ROE: HUBC's Return on Equity (31.8%) is considered high.


Financial Health

How is Hub Power's financial position?


Financial Position Analysis

Short Term Liabilities: HUBC's short term assets (PKR127.8B) exceed its short term liabilities (PKR113.2B).

Long Term Liabilities: HUBC's short term assets (PKR127.8B) exceed its long term liabilities (PKR55.4B).


Debt to Equity History and Analysis

Debt Level: HUBC's debt to equity ratio (80.2%) is considered high.

Reducing Debt: HUBC's debt to equity ratio has reduced from 143.6% to 80.2% over the past 5 years.

Debt Coverage: HUBC's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: HUBC's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Hub Power current dividend yield, its reliability and sustainability?

15.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HUBC's dividend (15.6%) is higher than the bottom 25% of dividend payers in the PK market (3.17%).

High Dividend: HUBC's dividend (15.6%) is in the top 25% of dividend payers in the PK market (10.54%)


Stability and Growth of Payments

Stable Dividend: HUBC's dividend payments have been volatile in the past 10 years.

Growing Dividend: HUBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.2%), HUBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HUBC's dividends in 3 years are forecast to be covered by earnings (86.9% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Kamran Kamal

0.25

Tenure

Mr. Kamran Kamal has been Chief Executive Officer at The Hub Power Company Limited since July 1, 2021 and serves as its Director since 2021. He has been the Chief Executive Officer of Laraib Energy Limited...


Leadership Team

Experienced Management: HUBC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: HUBC's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Hub Power Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Hub Power Company Limited
  • Ticker: HUBC
  • Exchange: KASE
  • Founded: 1991
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: PK₨99.790b
  • Shares outstanding: 1.30b
  • Website: https://www.hubpower.com

Number of Employees


Location

  • The Hub Power Company Limited
  • Ocean Tower
  • G-3, Block 9, 11th Floor
  • Karachi
  • 75600
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 13:32
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.