HUBSHUBS
US • —
$204.89
P/E
110.54
PEG
—
FCF Yield
6.2%
Rev Growth YoY
+21.1% YoY
Gross Margin
83.7%
Health Score
9/10
D/E Ratio
—
Confidence
MEDIUM
Business Snapshot
HubSpot (HUBS) is a leading provider of customer relationship management (CRM) and inbound marketing software, generating revenue primarily through subscriptions to its platform covering marketing, sales, and customer service hubs. It operates in the highly competitive cloud-based software market, positioning itself as a dominant player for small and medium-sized businesses (SMBs) seeking an all-in-one growth platform. The company’s market cap of $9.73B classifies it as a large-cap company. A defining characteristic of HubSpot is its "flywheel" business model, where customer success drives referrals and organic growth, creating a strong competitive moat through brand loyalty and high switching costs.
Financial Health
HubSpot's financial health is exceptionally strong, marked by high profitability and a fortress-like balance sheet. The company boasts an impressive gross margin of 83.7% and a net margin of 3.0%, indicating significant pricing power and a shift toward profitability, though a comparative prior-year net margin was not provided...
Risk Assessment
- VALUATION — P/E of 110.54x is drastically elevated versus the sector average of 22x, leaving the stock highly susceptible to multiple compression if growth disappoints.
- EARNINGS QUALITY — Net margin of 3.0% is thin for a high-growth software company, indicating that profitability is still in early stages and could be vulnerable to cost inflation or a slowdown in revenue growth.
- INSIDER SELLING — Insiders have net sold 2 shares with 0 buys over the last 90 days, a bearish signal from those with the deepest insight into the company's prospects.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
HubSpot's financial health is exceptionally strong, marked by high profitability and a fortress-like balance sheet. The company boasts an impressive gross margin of 83.7% and a net margin of 3.0%, indicating significant pricing power and a shift toward profitability, though a comparative prior-year net margin was not provided. The balance sheet is virtually debt-free with a Debt/Equity ratio of 0.0x and a healthy current ratio of 1.67x, providing ample liquidity for operational needs and investments. Free cash flow stands at a robust $607.39M, generating a FCF yield of 6.2%, which provides significant capacity for reinvestment into product development and potential strategic acquisitions without the risk of dilution or financial distress.
- VALUATION — P/E of 110.54x is drastically elevated versus the sector average of 22x, leaving the stock highly susceptible to multiple compression if growth disappoints. - EARNINGS QUALITY — Net margin of 3.0% is thin for a high-growth software company, indicating that profitability is still in early stages and could be vulnerable to cost inflation or a slowdown in revenue growth. - INSIDER SELLING — Insiders have net sold 2 shares with 0 buys over the last 90 days, a bearish signal from those with the deepest insight into the company's prospects. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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