HUB24 Limited

One Value Stock in Diversified Financials Space with Long-Term Growth Potential- HUB24 Limited

This report is an updated version of the report published on 18 July 2022 at 3:55 PM GMT.

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

HUB24 Limited (ASX: HUB) is a diversified financial services provider. The HUB24 platform offers advisers and their clients numerous investment options, including market-leading managed portfolio solutions and enhanced transaction and reporting functionality.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~38.56% of the total shareholding. Bennelong Australian Equity Partners Pty. Ltd. and TIGA Trading Pty Ltd hold a maximum stake in the company at ~7.56% and ~6.00%, respectively.

1.4 Key Metrics:

During 1HFY22, the company recorded an asset turnover ratio of 0.35x against the industry median of 0.03x. In addition, the asset-to-equity ratio for 1HFY22 stood at 1.26x as compared to 5.20x of the industry median.

Section 2: Financial Highlights

2.1 Insights of 3QFY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/BV Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 18, 2022. The reference data in this report has been partly ssourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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