HUB24 Limited (HUB) AI Stock Analysis

• Market Cap: €6.90B
• Dividend Yield: 0.55%
• Average Volume (3M): 246.85K
• Price to Earnings (P/E): 117.5
• Beta (1Y): 1.66
• Revenue Growth: 22.81%
• EPS Growth: 32.47%
• Country: AU
• Employees: 882
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.40
• Shares Outstanding: 81,172,820
• 10 Day Avg. Volume: 358,038
• 30 Day Avg. Volume: 246,850
• PEG Ratio: 0.38
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.92
• 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: €69.40
• Price Target Upside: -20.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: AU$94.00 ▲(7.95%Upside)

HUB24 Limited's strong financial performance and positive technical indicators are tempered by a high valuation, leading to an overall stock score of 71. The company's robust revenue growth and cash flow management position it well for future growth, but high P/E ratio suggests the stock is expensive, which may limit upside potential.

HUB24 Limited Business Overview & Revenue Model

Company Description

HUB24 Limited, a financial services company, provides integrated platform, technology, and data solutions to wealth industry in Australia. It operates in Platform and Tech Solutions segments. The company develops and operates HUB24 and Xplore Wealth that are investment and superannuation platforms; and portfolio administration and reporting services for financial advisers, stockbrokers, accountants and their clients, and direct consumers. It also provides accounting, portfolio management, legal documentation, corporate compliance, and self-managed superannuation fund administration solutions; and application and technology products for the financial services sector, as well as license and consulting services for data management, software, and infrastructure. In addition, HUB24 Limited offers retirement solutions. The company was formerly known as Investorfirst Ltd. and changed its name to HUB24 Limited in August 2013. HUB24 Limited was incorporated in 2007 and is headquartered in Sydney, Australia.

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 strong financial performance with impressive revenue growth and robust profitability margins. A solid equity position and effective cash flow management further highlight the company's financial stability and potential for future growth.

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
EBITDA	119.17M	92.47M	79.11M	40.09M	20.48M	17.56M
Net Income	58.79M	47.16M	38.17M	14.66M	9.77M	8.23M
Balance Sheet
Total Assets	652.76M	622.73M	620.39M	547.72M	229.02M	97.82M
Cash, Cash Equivalents and Short-Term Investments	103.13M	88.05M	72.75M	43.45M	63.46M	33.81M
Total Debt	29.98M	45.22M	40.17M	49.48M	19.25M	6.06M
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: 87.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 87.08 is above the 20-day moving average (MA) of 83.47, above the 50-day MA of 78.98, and above the 200-day MA of 72.25, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 91.58 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
HUB	71 Outperform	€6.90B	117.52	11.42%	0.55%	22.81%	32.47%
Sector *	58 Neutral	$12.55B	5.32	-2.71%	5.38%	5.88%	-56.03%
PVQ		€1.16B	―	-24.47%	6.70%	―	―
PIJ		€149.61M	9.16	9.63%	12.90%	―	―
GQG	81 Outperform	AU$6.65B	10.16	110.61%	16.29%	47.63%	53.44%
PNI	67 Neutral	AU$4.18B	28.60	20.18%	3.39%	36.76%	70.74%
NWL	66 Neutral	AU$7.99B	77.71	65.17%	1.08%	24.24%	33.94%

HUB24 Limited Corporate Events

Vanguard Group Acquires Substantial Stake in HUB24 Limited

The Vanguard Group has become a substantial holder in HUB24 Limited, acquiring a 5.596% voting power with 4,542,748 ordinary shares. This significant investment by a major asset management firm like Vanguard could enhance HUB24’s market credibility and potentially influence its strategic decisions, impacting stakeholders and the company’s positioning within the financial services industry.

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 Dominion Income Trust

HUB24 Limited announced that it has ceased to be a substantial holder in Dominion Income Trust due to a dilution of its shareholding following the issuance of new shares. This change in holding may impact HUB24’s influence in Dominion Income Trust, potentially affecting its strategic positioning and interests in the trust.

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 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.