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HUB CYBER SECURITY (ISRAEL) LTD (HUBC)
NASDAQ:HUBC
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Hub
(NASDAQ:HUBC)
54Neutral
Hub (HUBC) vs. S&P 500 (SPY)
Market Cap
$8.59M
Dividend YieldN/A
Average Volume (3M)358.23K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees223
SectorTechnology
Sector Strength68
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-2.80
Shares Outstanding3,045,974
10 Day Avg. Volume309,917
30 Day Avg. Volume358,231
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap5.92
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit67.79
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. 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 MoneyHub (HUBC) generates revenue through a combination of subscription-based services and one-time sales of its technology solutions. The company offers different pricing tiers for its communication and collaboration platforms, allowing users to subscribe based on their specific needs and usage levels. In addition to subscription fees, Hub earns income from the sale of software licenses, hardware products, and professional services such as installation, training, and technical support. Significant partnerships with other technology firms and service providers enhance its product offerings and extend its market reach, contributing to its overall revenue growth.
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 | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 42.66M | 79.74M | 33.20M | 34.90M | ― | Gross Profit |
| 750.00K | 6.45M | ― | ― | ― | EBIT |
| -77.72M | -79.51M | -13.33M | ― | ― | EBITDA |
| -68.35M | -65.74M | ― | ― | ― | Net Income Common Stockholders |
| -87.45M | -81.59M | -13.72M | ― | ― |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.52M | 3.99M | 13.97M | ― | ― | Total Assets |
| 32.59M | 74.79M | 120.21M | 20.49M | 19.19M | Total Debt |
| 28.77M | 19.90M | 23.15M | ― | ― | Net Debt |
| 25.25M | 15.90M | ― | ― | ― | Total Liabilities |
| 83.32M | 65.98M | 54.47M | 11.96M | 13.55M | Stockholders Equity |
| -53.51M | 6.41M | 64.70M | ― | ― |
| Cash Flow | Free Cash Flow | |||
| -16.50M | -24.06M | ― | ― | ― | Operating Cash Flow |
| -16.20M | -23.43M | ― | ― | ― | Investing Cash Flow |
| 2.14M | -6.55M | -15.95M | ― | ― | Financing Cash Flow |
| 12.93M | 20.66M | 34.56M | ― | ― |
Hub Technical Analysis
Neutral
2.82
Price Trends
4.18
Negative
5.63
Negative
5.62
Negative
Market Momentum
-0.47
Negative
43.22
Neutral
62.11
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 2.82 is above the 20-day moving average (MA) of 2.81, below the 50-day MA of 4.18, and below the 200-day MA of 5.62, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 62.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBC.
Hub Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
54 Neutral | $8.59M | ― | 163.42% | ― | ― | ― | |
50 Neutral | $6.15M | ― | -0.89% | ― | -35.46% | 60.83% | |
47 Neutral | $8.01M | ― | -243.87% | ― | -14.99% | 59.75% | |
43 Neutral | $9.48M | ― | -184.93% | ― | -45.24% | 64.61% |
* Technology Sector Average
Performance Comparison
HUBC
Hub
2.82
-7.28
-72.08%
SOS
SOS
4.67
-13.03
-73.62%
APCX
AppTech
0.28
-0.61
-68.54%
RVYL
Ryvyl
0.96
-0.47
-32.87%
CISO
Cerberus Cyber Sentinel Corp
0.51
-0.58
-53.21%
FAAS
DigiAsia
0.27
-8.89
-97.05%
Hub Earnings Call Summary
Earnings Call Date:Dec 02, 2024
(Q2-2024)
| % Change Since: -48.91%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with significant improvements in operational efficiencies and strategic focus on high-margin software solutions. The demand for the Secure Data Fabric platform and reduction in expenses are notable positives, though challenged by revenue decline and cash flow issues.Q2-2024 Updates
Positive Updates
Improved Gross Profit Margin
Gross profit margin for the six months ended June 30, 2024, improved to 9.5% compared to negative 7.9% for the same period in 2023, reflecting effective management of operations and efficiencies.
Significant Reduction in Operating Expenses
Total operating expenses for the six months ended June 30, 2024, were $16.5 million, a 90% decline compared to $57.5 million reported for the same period in 2023.
Decrease in General and Administrative Expenses
G&A expenses decreased by 63% or $22 million for the six months ended June 30, 2024, compared to the same period in 2023.
Secure Data Fabric Platform Demand
The Secure Data Fabric platform has seen remarkable demand, with validation and endorsement by leading financial services firms, positioning it as a growth engine for HUB.
Strategic Evolution Towards Software
HUB has transitioned to focus on high-margin software-driven solutions, with the Secure Data Fabric poised to be the primary growth driver, targeting margins in the 80% to 90% range.
Negative Updates
Revenue Decline
Revenue for the six months ended June 30, 2024, was $15.7 million, a decline of $9.3 million or 37% compared to $25 million for the same period in 2023, primarily due to terminated and less profitable contracts.
Cash Flow Challenges
A decrease in cash of $2 million was reported, with cash outlay for operating expenses being $10 million against $8 million generated from financing activities.
Company Guidance
During the first half of 2024, HUB Cyber Security experienced a revenue decline of 37%, from $25 million in 2023 to $15.7 million, largely due to the termination of less profitable contracts. However, the company improved its gross profit margin significantly from a negative 7.9% to 9.5%, attributed to effective operational management and the absence of prior one-off costs. Operating expenses were drastically reduced by 90%, from $57.5 million to $16.5 million, as the company streamlined operations and reduced headcount. General and administrative expenses saw a 63% decrease, while sales and marketing expenses fell by 43%, and R&D expenses reduced by 77%. The company generated $8 million from financing activities, despite a $10 million cash outlay for operating expenses. Looking forward, HUB's primary growth engine will be its Secure Data Fabric platform, expected to surpass its professional services in revenue contribution, with an anticipated shift in business mix starting in 2025.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.