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HUB24 Limited (AU:HUB)
:HUB

HUB24 Limited (HUB) AI Stock Analysis

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AU

HUB24 Limited

(Berlin:HUB)

Rating:71Outperform
Price Target:
HUB24 Limited scores high in financial performance, with strong revenue growth and profitability margins, supported by a stable balance sheet and effective cash flow management. Technical analysis presents mixed signals, with bearish momentum indicators but neutral RSI levels. Valuation concerns arise due to a high P/E ratio, suggesting the stock may be overvalued unless growth expectations are met. Overall, HUB24 is well-positioned but faces potential risks from its high valuation and technical indicators.

HUB24 Limited (HUB) vs. iShares MSCI Australia ETF (EWA)

HUB24 Limited Business Overview & Revenue Model

Company DescriptionHUB24 Limited (HUB) is an Australian financial services company that specializes in providing integrated platform solutions for financial advisors, stockbrokers, accountants, and their clients. The company operates in the financial technology sector, offering a comprehensive range of investment and superannuation products. HUB24's core service is its investment platform, which provides a customizable suite of tools to manage and administer client portfolios, enabling tailored investment solutions that cater to individual needs.
How the Company Makes MoneyHUB24 Limited generates revenue primarily through fees charged for the use of its investment platform. The company earns income from various sources, including administration fees, which are based on the total funds under administration (FUA), transaction fees from trading activities conducted on behalf of clients, and fees from managed portfolio services. Additionally, HUB24 benefits financially from strategic partnerships with financial advisory firms, which expand its client base and increase the volume of assets managed on its platform. This growth in FUA directly correlates to increased revenue, as the platform's fee structure is often tied to the size of assets administered. HUB24 also derives income from providing ancillary services such as compliance and regulatory reporting tools, which enhance the overall value proposition of its platform.

HUB24 Limited Financial Statement Overview

Summary
HUB24 Limited exhibits a strong financial performance across all verticals. The company has demonstrated impressive revenue growth and strong profitability margins. The balance sheet reflects a stable financial position with low leverage and high equity ratios. Cash flow metrics highlight effective cash management and strong free cash flow generation. Overall, HUB24 Limited is well-positioned for future growth, though there remains potential to further enhance profitability metrics.
Income Statement
85
Very Positive
HUB24 Limited demonstrates strong revenue growth with a growth rate of 16.09% from 2023 to 2024. The gross profit margin is robust at 78.94%, and the net profit margin has improved to 14.57% from 13.70% the previous year. EBIT and EBITDA margins are also healthy at 16.79% and 28.58%, respectively. The company shows a positive trend in profitability and efficiency, though room for improvement remains in further optimizing net profit margins.
Balance Sheet
82
Very Positive
The company maintains a solid equity position with an equity ratio of 83.43%. The debt-to-equity ratio is low at 0.09, indicating low leverage risk. Return on equity has improved to 9.07%, showcasing effective use of shareholder equity to generate profits. The strong equity ratio and low debt levels suggest financial stability, although ROE could be further enhanced.
Cash Flow
88
Very Positive
HUB24 Limited shows robust cash flow management with a 9.96% growth in free cash flow year-over-year. The operating cash flow to net income ratio is 1.87, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.36, suggesting effective conversion of net income to cash. The company's strong cash flow performance supports its operational and strategic initiatives.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
365.79M323.49M278.63M191.40M108.81M81.66M
Gross Profit
327.03M255.38M225.44M149.64M91.29M68.69M
EBIT
148.76M54.30M51.40M20.26M13.52M13.77M
EBITDA
119.17M92.47M79.11M40.09M20.48M17.56M
Net Income Common Stockholders
58.79M47.16M38.17M14.66M9.77M8.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
103.13M88.05M72.75M43.45M63.46M33.81M
Total Assets
652.76M622.73M620.39M547.72M229.02M97.82M
Total Debt
29.98M45.22M40.17M49.48M19.25M6.06M
Net Debt
-73.15M-42.83M-32.57M6.03M-44.21M-27.75M
Total Liabilities
124.25M103.03M109.98M92.06M47.95M22.99M
Stockholders Equity
528.51M519.70M510.41M455.66M181.07M74.82M
Cash FlowFree Cash Flow
114.91M64.13M58.32M24.81M13.12M18.03M
Operating Cash Flow
119.62M88.25M76.14M37.41M19.17M25.26M
Investing Cash Flow
-23.11M-18.74M-18.18M-25.04M-55.11M-7.70M
Financing Cash Flow
-55.76M-54.21M-28.67M-32.37M65.59M-2.21M

HUB24 Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price83.97
Price Trends
50DMA
73.39
Positive
100DMA
74.54
Positive
200DMA
69.93
Positive
Market Momentum
MACD
2.77
Negative
RSI
70.11
Negative
STOCH
87.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HUB, the sentiment is Positive. The current price of 83.97 is above the 20-day moving average (MA) of 81.26, above the 50-day MA of 73.39, and above the 200-day MA of 69.93, indicating a bullish trend. The MACD of 2.77 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 87.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HUB.

HUB24 Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMFG
74
Outperform
€1.42B6.4923.27%8.38%-9.29%12.94%
AUHUB
71
Outperform
AU$6.73B114.6011.42%0.56%22.81%32.47%
AUASX
69
Neutral
AU$14.17B29.0213.33%3.06%9.70%2.64%
AUAFI
68
Neutral
30.193.68%3.66%1.81%0.50%
64
Neutral
$12.79B9.717.54%16971.00%12.07%-7.53%
AUPPS
60
Neutral
AU$332.01M32.039.89%2.88%23.52%7.96%
AUAMP
51
Neutral
$3.19B17.774.84%2.39%19.36%1261.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HUB
HUB24 Limited
85.20
41.37
94.37%
AU:MFG
Magellan Financial Group Ltd
8.41
0.49
6.12%
AU:AMP
AMP
1.27
0.22
20.84%
AU:ASX
ASX
73.42
11.82
19.18%
AU:PPS
Praemium Ltd
0.70
0.27
62.79%
AU:AFI
Australian Foundation Investment Co. Ltd.
7.37
0.42
6.07%

HUB24 Limited Corporate Events

HUB24 Limited Acquires Substantial Holding in Dominion Income Trust
Jun 4, 2025

HUB24 Limited has announced that it has become a substantial holder in Dominion Income Trust 1 (ASX:DN1) with a 5.13% voting power. This development reflects HUB24’s strategic investment interests and could enhance its influence within the investment trust sector, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (AU:HUB) stock is a Buy with a A$71.50 price target. To see the full list of analyst forecasts on HUB24 Limited stock, see the AU:HUB Stock Forecast page.

HUB24 Limited Reduces Stake in WCM Global Growth
Jun 4, 2025

HUB24 Limited has announced a change in its substantial holding in WCM Global Growth Limited, with its voting power decreasing from 6.65% to 5.65%. This change reflects a decrease in the number of ordinary shares held, impacting HUB24’s influence in WCM Global Growth Limited and potentially affecting its strategic positioning and stakeholder interests.

The most recent analyst rating on (AU:HUB) stock is a Buy with a A$71.50 price target. To see the full list of analyst forecasts on HUB24 Limited stock, see the AU:HUB Stock Forecast page.

HUB24 Director Increases Shareholding
Apr 23, 2025

HUB24 Limited announced a change in the director’s interest, with Rachel Grimes AM acquiring 1,000 fully paid ordinary shares, increasing her total holding to 3,000 shares. This purchase, conducted on-market at $65.00 per share, reflects a potential vote of confidence in the company’s future prospects and may impact stakeholder perceptions positively.

HUB24 Achieves Record Q3 Inflows Amid Market Volatility
Apr 14, 2025

HUB24 Limited reported a record Q3 FY25 with net inflows of $4.9 billion, marking a 39% increase from the previous corresponding period. The company’s total Funds Under Administration (FUA) reached $124.1 billion, up 24% year-on-year, driven by strong platform inflows and strategic migrations. Despite market volatility, HUB24’s resilient business model and growing demand for financial advice position it well for continued growth, with market share increasing to 8.3% and several industry accolades reinforcing its competitive edge.

HUB24 Limited Releases Securities Trading Policy
Apr 8, 2025

HUB24 Limited has released its Securities Trading Policy in compliance with ASX Listing Rules, which is now available on the company’s website. This policy release underscores HUB24’s commitment to corporate governance and transparency, potentially impacting its operational integrity and stakeholder trust.

HUB24 Limited Announces Issuance of Unquoted Equity Securities
Apr 8, 2025

HUB24 Limited has announced the issuance, conversion, or payment up of unquoted equity securities. This move is part of the company’s ongoing efforts to manage its equity structure and potentially enhance its financial flexibility. The announcement may have implications for the company’s stakeholders, as it could influence HUB24’s market positioning and operational strategies.

HUB24 Director Increases Stake, Signaling Confidence in Growth
Apr 8, 2025

HUB24 Limited announced a change in the director’s interest, with Michelle Kim Tredenick acquiring an additional 1,800 fully paid ordinary shares, bringing her total to 2,800 shares. This acquisition reflects confidence in the company’s growth and strategic direction, potentially influencing stakeholder perceptions and reinforcing HUB24’s commitment to aligning leadership interests with shareholder value.

HUB24 Limited Director Increases Shareholding
Mar 10, 2025

HUB24 Limited announced a change in the director’s interest, with Rachel Grimes AM acquiring an additional 1,000 fully paid ordinary shares, bringing her total to 2,000 shares. This transaction, conducted on-market at $74.90 per share, reflects a strategic move that may influence the company’s governance and shareholder confidence, potentially impacting its market position and stakeholder relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.