Company DescriptionHUB24 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 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

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

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

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSB		€3.89B	107.14	11.42%	0.56%	―	―
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
AMLTF		$2.04B	17.29	4.84%	2.45%	―	―
ASXFF		$9.17B	28.59	13.33%	3.03%	―	―
NNA		€813.07M	5.95	23.27%	8.23%	―	―
AFOVF			31.61	3.68%	―	―	―
PPS	60 Neutral	AU$332.01M	32.03	9.89%	2.88%	23.52%	7.96%

* Financial Sector Average

Performance Comparison

DE:FSB

HUB24 Limited

47.40

20.59

76.80%

AMLTF

AMP Limited

0.81

0.11

15.71%

ASXFF

ASX

47.44

6.33

15.40%

DE:NNA

Magellan Financial Group Ltd

4.62

-0.25

-5.13%

AFOVF

Australian Foundation Investment Co. Ltd.

5.00

0.00

0.00%

AU:PPS

Praemium Ltd

0.70

0.26

59.09%

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.