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HUB CYBER SECURITY (ISRAEL) LTD (HUBC)
:HUBC
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Hub
(NASDAQ:HUBC)
Rating:38Underperform
Price Target:
$2.50
▲( 3.73% Upside)
Hub (HUBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.01M
Dividend YieldN/A
Average Volume (3M)307.81K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-30.70%
EPS Growth27.15%
CountryUS
Employees322
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.36
Shares Outstanding3,045,974
10 Day Avg. Volume331,872
30 Day Avg. Volume307,810
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.14
Price to Sales (P/S)0.00
P/FCF Ratio-1.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Hub Business Overview & Revenue Model
Company DescriptionHub Cyber Security Ltd. (HUBC) is a prominent company in the cybersecurity sector, specializing in providing advanced cyber defense solutions. With a strong focus on secure computing services, Hub offers a range of products and services designed to protect sensitive data and systems for various industries, including finance, healthcare, and government. The company is known for its innovative approach to cybersecurity, leveraging cutting-edge technology to deliver robust protection against cyber threats.
How the Company Makes MoneyHub Cyber Security Ltd. makes money by offering a variety of cybersecurity products and services that cater to the needs of businesses and organizations seeking to protect their digital assets. The company's revenue model primarily revolves around the sale of software licenses, subscription-based security services, and consulting fees for cybersecurity assessments and custom solutions. Additionally, Hub benefits from strategic partnerships with technology firms and government contracts, which enhance its market presence and revenue potential. Its focus on innovation and the growing demand for cybersecurity solutions contribute significantly to its earnings.
Hub Financial Statement Overview
Summary
Hub Cyber Security faces significant financial challenges, with declining revenues, negative profitability margins, and negative equity, indicating high leverage and financial instability. Despite some cash flow improvements, overall financial health remains a concern.Income Statement
The company has experienced a significant decline in revenue from 2022 to 2023, indicating a revenue growth challenge. The gross profit margin is extremely low, and both EBIT and EBITDA margins are negative, reflecting operating inefficiencies and high costs relative to revenues. Net profit margin is also negative, indicating profitability issues.55
Neutral
Balance Sheet
The balance sheet shows a negative stockholders' equity, suggesting high leverage and potential financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, and return on equity is negative due to net losses. The equity ratio is negative, indicating the company is heavily reliant on debt financing.40
Negative
Cash Flow
The company has negative operating and free cash flow, indicating cash flow issues. The operating cash flow to net income ratio is slightly better compared to previous years, suggesting some improvement in cash generation relative to net losses. However, the free cash flow to net income ratio remains negative.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 15.71M | 42.66M | 79.74M | 33.20M | 34.90M | ― | Gross Profit |
| 1.50M | 750.00K | 6.45M | ― | ― | ― | EBIT |
| -15.03M | -77.72M | -79.51M | -13.33M | ― | ― | EBITDA |
| -13.89M | -68.35M | -65.74M | ― | ― | ― | Net Income Common Stockholders |
| -27.09M | -87.45M | -81.59M | -13.72M | ― | ― |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.23M | 3.52M | 3.99M | 13.97M | ― | ― | Total Assets |
| 11.42M | 32.59M | 74.79M | 120.21M | 20.49M | 19.19M | Total Debt |
| 753.51K | 28.77M | 19.90M | 23.15M | ― | ― | Net Debt |
| -2.48M | 25.25M | 15.90M | ― | ― | ― | Total Liabilities |
| 6.98M | 83.32M | 65.98M | 54.47M | 11.96M | 13.55M | Stockholders Equity |
| 2.98M | -53.51M | 6.41M | 64.70M | ― | ― |
| Cash Flow | Free Cash Flow | ||||
| -10.80M | -16.50M | -24.06M | ― | ― | ― | Operating Cash Flow |
| -10.79M | -16.20M | -23.43M | ― | ― | ― | Investing Cash Flow |
| -432.00K | 2.14M | -6.55M | -15.95M | ― | ― | Financing Cash Flow |
| 8.96M | 12.93M | 20.66M | 34.56M | ― | ― |
Hub Technical Analysis
Negative
2.41
Price Trends
3.25
Negative
5.31
Negative
5.26
Negative
Market Momentum
-0.23
Negative
35.06
Neutral
22.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBC, the sentiment is Negative. The current price of 2.41 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 3.25, and below the 200-day MA of 5.26, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUBC.
Hub Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
50 Neutral | $19.24M | ― | -3.13% | ― | -35.46% | 60.83% | |
49 Neutral | $5.12M | ― | -309.32% | ― | -23.82% | 56.13% | |
44 Neutral | $8.95M | ― | -220.48% | ― | -25.38% | 67.34% | |
38 Underperform | $7.01M | ― | 163.42% | ― | -30.70% | 27.15% |
* Technology Sector Average
Performance Comparison
HUBC
Hub
2.30
-6.48
-73.80%
SOS
SOS
6.34
-8.10
-56.09%
APCX
AppTech
0.27
-0.59
-68.60%
RVYL
Ryvyl
0.61
-0.62
-50.41%
Hub Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q4-2024)
| % Change Since: 2.12%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
Despite a decline in revenue and increased liabilities, Hub Cybersecurity has demonstrated strong strategic realignment, cost reductions, and significant contract wins. The company's focus on high-margin business segments and operational efficiency has led to improved margins and a promising outlook for future growth.Q4-2024 Updates
Positive Updates
Strategic Realignment and Margin Improvement
Hub Cybersecurity's gross margin improved significantly to 25.6% in H2 2024, up by 15.4% compared with H2 2023 due to strategic realignment towards higher margin business segments.
Significant Engagement with Bank of San Marino
In March, Hub was awarded a EUR 20 million engagement by the Bank of San Marino to modernize its entire digital banking infrastructure, expected to deliver in full this year.
Operational Cost Reductions
Operating expenses for H2 2024 aggregated to $14.7 million, reflecting a significant 29% reduction compared to $20.9 million in H2 2023.
Strategic US Expansion
Hub is scaling its US presence with a new office in New York City and aggressively hiring world-class talent to support demand across North America.
Long-term Recurring Revenue Growth
Over 60% of 2024 revenue came from long-term recurring contracts across financial services and critical infrastructure.
Negative Updates
Revenue Decline
Revenue for the second half of 2024 was $13.8 million compared to $17.6 million in H2 2023, reflecting a deliberate strategic pivot.
Increased Liabilities
Liabilities rose to $108 million from $83 million, driven largely by a warrant liability tied to a fundraising round.
Company Guidance
During the Hub Cybersecurity 2024 financial results call, several key metrics and strategic initiatives were highlighted. The company reported a revenue of $13.8 million for the second half of 2024, down from $17.6 million in the same period in 2023, while full-year revenue was $39.6 million compared to $42.7 million in 2023. Despite a leaner revenue base, the gross margin improved significantly to 25.6% in H2 2024, up by 15.4% compared to H2 2023, driven by strategic realignment towards higher-margin business segments. Operating expenses were reduced by 29% in H2 2024 compared to the prior year, aggregating to $14.7 million. The operating loss also improved by 38% in H2 2024, dropping from $77 million in 2022 to $26 million in 2024. Hub's secured data fabric platform, with margins of 80% to 90%, is set to be the primary growth driver, with the company expecting a marked transformation in its business mix starting in 2025. The focus remains on expanding their US presence and targeting high-priority sectors like transportation, with an anticipated first signed contract in 2025. Hub's commitment to compliance and transparency has been reinforced with a new leadership team and strengthened governance frameworks.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.