HUBSPOT INC (HUBS) Stock Fundamental Analysis
NYSE:HUBS - New York Stock Exchange, Inc. - US4435731009 - Common Stock - Currency: USD
Taking everything into account, HUBS scores 5 out of 10 in our fundamental rating. HUBS was compared to 284 industry peers in the Software industry. HUBS has an excellent financial health rating, but there are some minor concerns on its profitability. HUBS is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
HUBS had positive earnings in the past year.
HUBS had a positive operating cash flow in the past year.
In the past 5 years HUBS reported 4 times negative net income.
In the past 5 years HUBS always reported a positive cash flow from operatings.
1.2 Ratios
HUBS's Return On Assets of 0.12% is fine compared to the rest of the industry. HUBS outperforms 61.23% of its industry peers.
HUBS has a Return On Equity of 0.24%. This is in the better half of the industry: HUBS outperforms 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.24% | ||
| ROIC | N/A |
ROA(3y)-3.22%
ROA(5y)-3.51%
ROE(3y)-7.86%
ROE(5y)-8.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HUBS has a better Profit Margin (0.18%) than 61.96% of its industry peers.
With an excellent Gross Margin value of 85.03%, HUBS belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Gross Margin of HUBS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.18% | ||
| GM | 85.03% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
HUBS does not have a ROIC to compare to the WACC, probably because it is not profitable.
HUBS has more shares outstanding than it did 1 year ago.
HUBS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HUBS has an improved debt to assets ratio.
2.2 Solvency
HUBS has an Altman-Z score of 12.60. This indicates that HUBS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HUBS (12.60) is better than 87.68% of its industry peers.
There is no outstanding debt for HUBS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 12.6 |
ROIC/WACCN/A
WACC13.91%
2.3 Liquidity
HUBS has a Current Ratio of 1.67. This is a normal value and indicates that HUBS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.67, HUBS perfoms like the industry average, outperforming 50.36% of the companies in the same industry.
HUBS has a Quick Ratio of 1.67. This is a normal value and indicates that HUBS is financially healthy and should not expect problems in meeting its short term obligations.
HUBS has a Quick ratio (1.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.86% over the past year.
Measured over the past years, HUBS shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.18% on average per year.
The Revenue has grown by 21.07% in the past year. This is a very strong growth!
HUBS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.24% yearly.
EPS 1Y (TTM)37.86%
EPS 3Y64.62%
EPS 5Y40.18%
EPS Q2Q%31.82%
Revenue 1Y (TTM)21.07%
Revenue growth 3Y26.41%
Revenue growth 5Y31.24%
Sales Q2Q%20.84%
3.2 Future
The Earnings Per Share is expected to grow by 26.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, HUBS will show a quite strong growth in Revenue. The Revenue will grow by 17.14% on average per year.
EPS Next Y14.77%
EPS Next 2Y18.14%
EPS Next 3Y21.12%
EPS Next 5Y26.54%
Revenue Next Year15.36%
Revenue Next 2Y15.74%
Revenue Next 3Y16.41%
Revenue Next 5Y17.14%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 89.46, the valuation of HUBS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HUBS.
The average S&P500 Price/Earnings ratio is at 29.63. HUBS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 77.95, HUBS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUBS is on the same level as its industry peers.
HUBS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.46 | ||
| Fwd PE | 77.95 |
4.2 Price Multiples
HUBS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.82 | ||
| EV/EBITDA | 1033.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HUBS's earnings are expected to grow with 21.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.06
PEG (5Y)2.23
EPS Next 2Y18.14%
EPS Next 3Y21.12%
5. Dividend
5.1 Amount
HUBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
726.43
-21.57 (-2.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner Change4.29%
Ins Owners3.51%
Ins Owner Change-1.49%
Market Cap37.50B
Analysts81.11
Price Target891.34 (22.7%)
Short Float %1.69%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.9%
Min EPS beat(2)3.84%
Max EPS beat(2)11.96%
EPS beat(4)4
Avg EPS beat(4)10.56%
Min EPS beat(4)3.84%
Max EPS beat(4)16.28%
EPS beat(8)8
Avg EPS beat(8)19.31%
EPS beat(12)12
Avg EPS beat(12)19.52%
EPS beat(16)16
Avg EPS beat(16)18.17%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.5%
Max Revenue beat(2)2.39%
Revenue beat(4)4
Avg Revenue beat(4)1.51%
Min Revenue beat(4)0.86%
Max Revenue beat(4)2.39%
Revenue beat(8)8
Avg Revenue beat(8)2.1%
Revenue beat(12)12
Avg Revenue beat(12)2.06%
Revenue beat(16)16
Avg Revenue beat(16)2.22%
PT rev (1m)20.64%
PT rev (3m)23.75%
EPS NQ rev (1m)-9.23%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.46 | ||
| Fwd PE | 77.95 | ||
| P/S | 14.27 | ||
| P/FCF | 79.82 | ||
| P/OCF | 62.64 | ||
| P/B | 19.65 | ||
| P/tB | 24.89 | ||
| EV/EBITDA | 1033.51 |
EPS(TTM)8.12
EY1.12%
EPS(NY)9.32
Fwd EY1.28%
FCF(TTM)9.1
FCFY1.25%
OCF(TTM)11.6
OCFY1.6%
SpS50.9
BVpS36.97
TBVpS29.19
PEG (NY)6.06
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 0.18% | ||
| GM | 85.03% | ||
| FCFM | 17.88% |
ROA(3y)-3.22%
ROA(5y)-3.51%
ROE(3y)-7.86%
ROE(5y)-8.73%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y1.04%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 133.03% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1802.09% | ||
| Profit Quality | 10151.1% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 12.6 |
F-Score6
WACC13.91%
ROIC/WACCN/A
Cap/Depr(3y)142.9%
Cap/Depr(5y)144.88%
Cap/Sales(3y)4.94%
Cap/Sales(5y)5.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.86%
EPS 3Y64.62%
EPS 5Y40.18%
EPS Q2Q%31.82%
EPS Next Y14.77%
EPS Next 2Y18.14%
EPS Next 3Y21.12%
EPS Next 5Y26.54%
Revenue 1Y (TTM)21.07%
Revenue growth 3Y26.41%
Revenue growth 5Y31.24%
Sales Q2Q%20.84%
Revenue Next Year15.36%
Revenue Next 2Y15.74%
Revenue Next 3Y16.41%
Revenue Next 5Y17.14%
EBIT growth 1Y42.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year41.84%
EBIT Next 3Y34.05%
EBIT Next 5Y29.89%
FCF growth 1Y87.38%
FCF growth 3Y38.51%
FCF growth 5Y48.43%
OCF growth 1Y70.56%
OCF growth 3Y35.86%
OCF growth 5Y38.14%