HUB24 Limited (HUB) AI Stock Analysis

• Market Cap: AU$6.73B
• Dividend Yield: 0.56%
• Average Volume (3M): 261.55K
• Price to Earnings (P/E): 114.6
• Beta (1Y): 1.67
• Revenue Growth: 22.81%
• EPS Growth: 32.47%
• Country: AU
• Employees: 882
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.40
• Shares Outstanding: 81,172,820
• 10 Day Avg. Volume: 182,241
• 30 Day Avg. Volume: 261,551
• PEG Ratio: 4.89
• Price to Book (P/B): 11.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$68.96
• Price Target Upside: -17.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• 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 Business Overview & Revenue Model

Company Description

HUB24 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 Money

HUB24 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
365.79M	323.49M	278.63M	191.40M	108.81M	81.66M
	Gross Profit
327.03M	255.38M	225.44M	149.64M	91.29M	68.69M
	EBIT
148.76M	54.30M	51.40M	20.26M	13.52M	13.77M
	EBITDA
119.17M	92.47M	79.11M	40.09M	20.48M	17.56M
	Net Income Common Stockholders
58.79M	47.16M	38.17M	14.66M	9.77M	8.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.13M	88.05M	72.75M	43.45M	63.46M	33.81M
	Total Assets
652.76M	622.73M	620.39M	547.72M	229.02M	97.82M
	Total Debt
29.98M	45.22M	40.17M	49.48M	19.25M	6.06M
	Net Debt
-73.15M	-42.83M	-32.57M	6.03M	-44.21M	-27.75M
	Total Liabilities
124.25M	103.03M	109.98M	92.06M	47.95M	22.99M
	Stockholders Equity
528.51M	519.70M	510.41M	455.66M	181.07M	74.82M
Cash Flow		Free Cash Flow
114.91M	64.13M	58.32M	24.81M	13.12M	18.03M
	Operating Cash Flow
119.62M	88.25M	76.14M	37.41M	19.17M	25.26M
	Investing Cash Flow
-23.11M	-18.74M	-18.18M	-25.04M	-55.11M	-7.70M
	Financing Cash Flow
-55.76M	-54.21M	-28.67M	-32.37M	65.59M	-2.21M

HUB24 Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFG	74 Outperform	€1.42B	6.49	23.27%	8.38%	-9.29%	12.94%
HUB	71 Outperform	AU$6.73B	114.60	11.42%	0.56%	22.81%	32.47%
ASX	69 Neutral	AU$14.17B	29.02	13.33%	3.06%	9.70%	2.64%
AFI	68 Neutral		30.19	3.68%	3.66%	1.81%	0.50%
Sector *	64 Neutral	$12.79B	9.71	7.54%	16971.00%	12.07%	-7.53%
PPS	60 Neutral	AU$332.01M	32.03	9.89%	2.88%	23.52%	7.96%
AMP	51 Neutral	$3.19B	17.77	4.84%	2.39%	19.36%	1261.54%

HUB24 Limited Corporate Events

HUB24 Limited Acquires Substantial Holding in Dominion Income Trust

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

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

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

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

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

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

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

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.