Hub (HUBC) AI Stock Analysis

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Hub

(NASDAQ:HUBC)

54Neutral

The overall score reflects a company facing significant financial and operational challenges, with some positive signs of operational improvements and strategic shifts. The technical analysis offers some hope for momentum, but valuation concerns and ongoing financial instability weigh heavily.

Hub (HUBC) vs. S&P 500 (SPY)

Market Cap

$8.16M

Dividend YieldN/A

Average Volume (3M)371.78K

Price to Earnings (P/E)―

Beta (1Y)0.10

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees322

SectorTechnology

Sector Strength65

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.36

Shares Outstanding3,045,974

10 Day Avg. Volume345,219

30 Day Avg. Volume371,778

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 Cap8.15

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit88.73

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

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Neutral

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.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price2.69

Price Trends

50DMA

3.97

Negative

100DMA

5.58

Negative

200DMA

5.56

Negative

Market Momentum

MACD

-0.38

Negative

RSI

41.55

Neutral

STOCH

54.25

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 2.69 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.97, and below the 200-day MA of 5.56, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 54.25 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
HUBC	54 Neutral	$8.16M	―	163.42%	―	―	―
SOS	50 Neutral	$6.16M	―	-0.89%	―	-35.46%	60.83%
RVYL	47 Neutral	$7.50M	―	-243.87%	―	-14.99%	59.75%
APCX	43 Neutral	$8.27M	―	-184.93%	―	-45.24%	64.61%

* Technology Sector Average

Performance Comparison

HUBC

Hub

2.70

-6.56

-70.84%

SOS

4.62

-12.63

-73.22%

APCX

AppTech

0.27

-0.64

-70.33%

RVYL

Ryvyl

0.86

-0.57

-39.86%

CISO

Cerberus Cyber Sentinel Corp

0.84

-0.12

-12.50%

FAAS

DigiAsia

0.20

-7.75

-97.48%

Hub Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q4-2024)

% Change Since: 13.98%|

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.