Hub (HUBC) AI Stock Analysis

• Market Cap: $8.70M
• Dividend Yield: N/A
• Average Volume (3M): 944.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -30.70%
• EPS Growth: 82.02%
• Country: US
• Employees: 322
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): -3.57
• Shares Outstanding: 3,045,974
• 10 Day Avg. Volume: 485,262
• 30 Day Avg. Volume: 944,199
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 7.65
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 16.22
• Enterprise Value/Ebitda: -2.72
• 1Y Price Target: $2.50
• Price Target Upside: -12.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $2.50 ▼(-12.59% Downside)

Hub Cybersecurity's overall stock score is heavily impacted by its poor financial performance, which is the most significant factor. While there are some positive strategic initiatives and improvements in the earnings call, the company's valuation and technical indicators suggest caution. The combination of financial instability and negative market sentiment weighs heavily on the stock's prospects.

Hub Business Overview & Revenue Model

Company Description

HUB Cyber Security Ltd. provides cyber security solutions in Israel and internationally. The company offers HUB Secure File Vault, a super charged managed file transfer backed by dedicated hardware driven security, which creates a secure enclave to protect the organization's data driven workflows; HUB Guard, a recurring security assessment, continuous network, and infrastructure monitoring and analysis, and planned incident response; D.Storm, a powerful SaaS DDoS simulation platform; RAM Commander, a software tool for reliability prediction and analysis, reliability block diagram, Markov chains analysis, maintainability prediction, spares optimization, FMEA/FMECA, testability, fault tree analysis, event tree analysis, and safety assessment; and Safety Commander designs to evaluate the safety of highly integrated systems in a model-based design environment. It also provides complementary trusted advisory and professional service facilitating cyber risk assessment, cyber risk mitigation, cyber incident response, quality reliability, and safety of critical systems. The company was founded in 2017 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Hub generates revenue primarily through a subscription-based model, where customers pay recurring fees for access to its software and services. This model allows for predictable revenue streams and long-term customer relationships. Key revenue streams include monthly and annual subscription fees from its cloud software products, professional services for implementation and customization, and ongoing support and maintenance contracts. Additionally, Hub may have significant partnerships with other technology firms and integration agreements that enhance its product offerings and expand its market reach, contributing to its overall earnings.

Hub Financial Statement Overview

Summary

Hub is experiencing significant financial challenges with declining revenues, high leverage, and persistent losses. The company's financial statements reflect a need for strategic restructuring to improve profitability and balance sheet stability. Cash flow issues further compound the company's financial risks, necessitating urgent management attention.

Income Statement

Hub has faced significant revenue decline over the years, with a notable drop from $79.74 million in 2022 to $29.56 million in 2024. The gross profit margin remains low, and both EBIT and net income have been negative, reflecting substantial operational and net losses. These factors significantly impact the company's income statement performance.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is unfavorable, highlighting high leverage. The equity ratio is negative due to the accumulated losses and high debt, indicating financial instability.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, indicating cash outflow challenges. Operating cash flow is negative, showing the company is not generating sufficient cash from operations. Financing activities are primarily funding operations, posing sustainability concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.56M	42.66M	50.00M	33.20M	34.90M
Gross Profit	3.45M	750.00K	-2.04M	―	―
EBITDA	-23.63M	-68.35M	-72.17M	―	―
Net Income	-39.76M	-87.45M	-81.59M	-13.72M	―
Balance Sheet
Total Assets	27.42M	32.59M	74.79M	120.21M	20.49M
Cash, Cash Equivalents and Short-Term Investments	3.08M	3.52M	3.99M	13.97M	―
Total Debt	40.48M	28.77M	19.90M	23.15M	―
Total Liabilities	108.23M	83.32M	65.98M	54.47M	11.96M
Stockholders Equity	-80.79M	-53.51M	6.41M	64.70M	―
Cash Flow
Free Cash Flow	-17.19M	-16.50M	-24.06M	―	―
Operating Cash Flow	-17.11M	-16.20M	-23.43M	―	―
Investing Cash Flow	-452.00K	2.14M	-6.55M	-15.95M	―
Financing Cash Flow	17.18M	12.93M	20.66M	34.56M	―

Hub Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBC, the sentiment is Neutral. The current price of 2.86 is below the 20-day moving average (MA) of 3.36, above the 50-day MA of 2.72, and below the 200-day MA of 4.52, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBC.

Hub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APCX	51 Neutral	$9.52M	―	-220.48%	―	-25.38%	67.34%
SOS	50 Neutral	$6.31M	―	-3.14%	―	147.92%	-1754.67%
Sector *	50 Neutral	C$3.52B	0.35	-5.03%	7.64%	17.01%	-2.22%
HUBC	46 Neutral	$8.70M	―	163.42%	―	-30.70%	82.02%
RVYL	39 Underperform	$7.33M	―	-309.32%	―	-23.82%	56.13%
CISO	―	$34.01M	―	-215.99%	―	―	―
FAAS	―	$15.29M	―		―	―	―