NYSE:HUBS

Stock Analysis Report

Executive Summary

HubSpot, Inc. provides a cloud-based marketing, sales, and customer service software platform for businesses in the Americas, Europe, and the Asia Pacific.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HUBS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.6%

HUBS

-6.6%

US Software

-4.2%

US Market


1 Year Return

7.4%

HUBS

29.5%

US Software

14.0%

US Market

Return vs Industry: HUBS underperformed the US Software industry which returned 35.1% over the past year.

Return vs Market: HUBS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HUBSIndustryMarket
7 Day-8.6%-6.6%-4.2%
30 Day-2.6%1.8%-1.8%
90 Day19.0%8.4%2.6%
1 Year7.4%7.4%30.8%29.5%16.3%14.0%
3 Year202.7%202.7%138.3%128.2%43.2%34.0%
5 Year333.1%333.1%203.2%181.5%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HUBS ($185.93) is trading above our estimate of fair value ($123.09)

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


Price To Earnings Ratio

PE vs Industry: HUBS is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: HUBS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HUBS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HUBS is overvalued based on its PB Ratio (12.3x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is HubSpot forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUBS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HUBS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HUBS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HUBS's revenue (16.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HUBS's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUBS's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has HubSpot performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUBS is currently unprofitable.

Growing Profit Margin: HUBS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HUBS is unprofitable, and losses have increased over the past 5 years at a rate of -4.3% per year.

Accelerating Growth: Unable to compare HUBS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HUBS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: HUBS has a negative Return on Equity (-8.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HubSpot's financial position?


Financial Position Analysis

Short Term Liabilities: HUBS's short term assets ($1.1B) exceed its short term liabilities ($322.5M).

Long Term Liabilities: HUBS's short term assets ($1.1B) exceed its long term liabilities ($596.8M).


Debt to Equity History and Analysis

Debt Level: HUBS's debt to equity ratio (52.4%) is considered high.

Reducing Debt: HUBS's debt to equity ratio has increased from 0% to 52.4% over the past 5 years.


Balance Sheet

Inventory Level: HUBS has a high level of physical assets or inventory.

Debt Coverage by Assets: HUBS's debt is covered by short term assets (assets are 3.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HUBS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HUBS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HUBS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HUBS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HUBS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HUBS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Brian Halligan (51yo)

15.1yrs

Tenure

US$3,108,818

Compensation

Mr. Brian Halligan Co-founded HubSpot, Inc. in 2005 and has been its Chief Executive Officer since 2005. Mr. Halligan served as Vice President of Sales of Groove Networks, Inc since 2000 until 2004. He wor ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD3.11M) is below average for companies of similar size in the US market ($USD6.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Halligan
Co-Founder15.1yrsUS$3.11m1.49% $116.2m
J. Sherman
President & COO5.9yrsUS$3.30m0.076% $5.9m
Dharmesh Shah
Co-Founder15.1yrsUS$2.15m3.71% $289.1m
Kathryn Bueker
CFO & Treasurer1.7yrsno data0.0097% $755.4k
Frank Auger
Chief Information Officer4.3yrsno datano data
Charles MacGlashing
Corporate Treasure & Senior Director of IR0yrsno datano data
John Kelleher
General Counsel & Secretary7.7yrsUS$1.18m0.070% $5.5m
Kipp Bodnar
Chief Marking Officer4.6yrsno datano data
Andrew Lindsay
Vice President of Corporate & Business Development1.1yrsno datano data
Katie Burke
Chief People Officer3.1yrsno datano data

4.5yrs

Average Tenure

51yo

Average Age

Experienced Management: HUBS's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Halligan
Co-Founder15.1yrsUS$3.11m1.49% $116.2m
Dharmesh Shah
Co-Founder15.1yrsUS$2.15m3.71% $289.1m
Mark Roberge
Advisor & Member of Advisory Board1.1yrsno datano data
Jill Ward
Director2.3yrsUS$228.26k0.0049% $382.8k
Michael Simon
Independent Director8.7yrsUS$246.36k0.077% $6.0m
David Scott
Member of Advisory Board1.1yrsno datano data
Lorrie Norrington
Lead Independent Director0yrsUS$254.76k0.0035% $272.1k
Ronald Gill
Independent Director7.7yrsUS$256.76k0.033% $2.5m
Julie Herendeen
Independent Director3.8yrsUS$240.76k0.012% $944.1k
Jay Simons
Independent Director3.1yrsUS$234.36k0.0088% $682.2k

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: HUBS's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

HubSpot, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HubSpot, Inc.
  • Ticker: HUBS
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$7.796b
  • Shares outstanding: 43.29m
  • Website: https://www.hubspot.com

Number of Employees


Location

  • HubSpot, Inc.
  • 25 First Street
  • 2nd Floor
  • Cambridge
  • Massachusetts
  • 2141
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUBSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2014
96DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014
0TZZLSE (London Stock Exchange)YesCommon StockGBUSDOct 2014
HUBS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2014

Biography

HubSpot, Inc. provides a cloud-based marketing, sales, and customer service software platform for businesses in the Americas, Europe, and the Asia Pacific. The company’s software platform includes integrated applications, such as customer relationship management, search engine optimization, blogging, Website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting. It also offers professional, as well as phone and/or email and chat based support services. It serves mid-market business-to-business companies. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:13
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.