Skip to Content

HubSpot Inc HUBS

Morningstar Rating
$651.78 +18.74 (2.96%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

HubSpot Has Become the Customer Platform of Choice for Rapidly Growing Companies

We believe HubSpot is a leader in marketing and sales automation software for the mid-market. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and mid-market as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Therefore, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

Price vs Fair Value

HUBS is trading at a 4% premium.
Price
$633.04
Fair Value
$252.00
Uncertainty
Very High
1-Star Price
$5,895.30
5-Star Price
$555.00
Economic Moat
Jxddqgw
Capital Allocation
Mbtwtvrc

Bulls Say, Bears Say

Bulls

HubSpot has made a splash in the SMB market with its freemium model, easier implementation, and simple and feature-rich software.

Bears

Net dollar retention is low relative to other rapidly growing SaaS peers and even software more broadly. Given the SMB customer base, we do not see this easing over the next several years.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if HUBS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$633.04
Day Range
$631.12656.80
52-Week Range
$399.49693.85
Bid/Ask
$416.59 / $725.00
Market Cap
$33.03 Bil
Volume/Avg
680,664 / 531,763

Key Statistics

Price/Earnings (Normalized)
110.67
Price/Sales
14.98
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

HubSpot provides a cloud-based marketing, sales, and customer service software platform referred to as the growth platform. The applications are available ala carte or packaged together. HubSpot’s mission is to help companies grow better and has expanded from its initial focus on inbound marketing to embrace marketing, sales, and service more broadly. The company was founded in 2006, completed its initial public offering in 2014, and is headquartered in Cambridge, Massachusetts.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
7,663

Competitors

Valuation

Metric
HUBS
MSFT
ADBE
Price/Earnings (Normalized)
110.6736.8528.22
Price/Book Value
24.9112.7113.84
Price/Sales
14.9813.3710.86
Price/Cash Flow
89.9129.1331.01
Price/Earnings
HUBS
MSFT
ADBE

Financial Strength

Metric
HUBS
MSFT
ADBE
Quick Ratio
1.761.020.93
Current Ratio
1.961.221.05
Interest Coverage
−55.9741.4955.63
Quick Ratio
HUBS
MSFT
ADBE

Profitability

Metric
HUBS
MSFT
ADBE
Return on Assets (Normalized)
8.79%19.91%27.01%
Return on Equity (Normalized)
21.57%39.57%49.98%
Return on Invested Capital (Normalized)
10.37%29.21%38.81%
Return on Assets
HUBS
MSFT
ADBE
See how this stock stacks up to its competitors with Morningstar Investor

Software - Application Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CRM
Salesforce IncPhxrkvtnNlqg$268.4 Bil
SAP
SAP SE ADRPwzcClxmn$217.4 Bil
INTU
Intuit IncMbthmrztsHfjy$176.6 Bil
NOW
ServiceNow IncTkxhxcpxLrbr$152.2 Bil
UBER
Uber Technologies IncQkpfpqdmSwmtsb$147.4 Bil
SHOP
Shopify Inc Registered Shs -A- Subord VtgCwcrzmyGxfgvy$89.5 Bil
CDNS
Cadence Design Systems IncZrcydcxfnGqrcxy$76.8 Bil
WDAY
Workday Inc Class ANfwydfwcMjss$67.8 Bil
ROP
Roper Technologies IncGsjcdsqqhwLhfmc$57.7 Bil
DASTY
Dassault Systemes SE ADRYhzwmrlZhk$53.9 Bil

Sponsor Center