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HubSpot (HUBS) Stock Analysis

This is a peer-relative look at HubSpot (HUBS): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for HubSpot (HUBS)
Profile ItemHUBS
NameHubSpot, Inc. Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustrySoftware
GICS Sub-IndustryApplication Software
Market Capitalization9.80 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 9, 2014
Security TypeCommon Stock

Price Performance

Cumulative Growth

HUBS
GSPC
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HubSpot (HUBS) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for HubSpot (HUBS) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for HubSpot (HUBS) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Total Return (1Y)-47.93%-3.00%
Total Return (3Y, Annualized)-20.64%8.28%
Total Return (5Y, Annualized)-24.58%-7.91%

Risk Profile

Drawdown History

HUBS
GSPC
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HubSpot (HUBS) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for HubSpot (HUBS) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Volatility (1Y, Annualized)73.36%61.69%
Beta (5Y)1.161.06
Max Drawdown (5Y)-80.02%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. HUBS is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Sharpe Ratio (1Y)-0.71-0.13
Sortino Ratio (1Y)-0.99-0.19

Profitability

ROE (TTM)

HubSpot (HUBS) posts ROE of 12.25%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

HUBS

Software & Services industry group

12.25%

Group distribution
Max
53.85%
Q3
17.90%
HUBS
12.25%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Largest peers
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
HUBS
12.25%
PANW
1.74%
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Where HubSpot (HUBS) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

HubSpot (HUBS) keeps 5.95% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

HUBS

Software & Services industry group

5.95%

Group distribution
Max
41.17%
Q3
15.28%
HUBS
5.95%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
SAP
20.41%
IBM
15.99%
HUBS
5.95%
PANW
2.67%
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Where HubSpot (HUBS) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

HubSpot (HUBS) turns 7.69% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

HUBS

Software & Services industry group

7.69%

Group distribution
Max
46.89%
Q3
17.64%
Median
8.73%
HUBS
7.69%
Q1
-2.13%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
HUBS
7.69%
PANW
5.40%
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Where HubSpot (HUBS) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
ROE (TTM)12.25%6.59%
ROA (TTM)3.52%2.45%
Net Margin (TTM)5.95%4.63%
Operating Margin (TTM)7.69%8.73%
Gross Margin (TTM)83.02%70.07%

Growth

Revenue Growth

HubSpot (HUBS) grew revenue 19.17%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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HubSpot (HUBS): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

HubSpot (HUBS) grew earnings per share 855.56%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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HubSpot (HUBS): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Revenue Growth (YoY)19.17%14.22%
Revenue Growth (3Y CAGR)21.85%13.52%
EPS Growth (YoY)855.56%7.85%
EPS Growth (3Y CAGR)--18.19%

Financial Strength

Current Ratio (MRQ)

HubSpot (HUBS) has current ratio of 1.34, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

HUBS

Software & Services industry group

1.34

Group distribution
Max
5.11
Q3
2.77
Median
1.67
HUBS
1.34
Q1
1.01
Min
0.03
Largest peers
PLTR
7.10
HUBS
1.34
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
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Where HubSpot (HUBS) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

HubSpot (HUBS) has debt-to-equity ratio of 0.14, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

HUBS

Software & Services industry group

0.14

Group distribution
Max
2.52
Q3
1.13
Median
0.40
HUBS
0.14
Q1
0.07
Min
0.00
Largest peers
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
HUBS
0.14
PANW
0.09
PLTR
0.02
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Where HubSpot (HUBS) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Current Ratio (MRQ)1.341.67
Debt / Equity (MRQ)0.140.40
Net Debt / EBITDA-4.840.17

Dividends

Dividend Yield (TTM)

HubSpot (HUBS) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

HUBS

Software & Services industry group

0.00%

Group distribution
HUBS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
SAP
1.03%
MSFT
0.69%
HUBS
0.00%
PLTR
0.00%
PANW
0.00%
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Where HubSpot (HUBS) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

HubSpot (HUBS) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

HUBS

Software & Services industry group

0.00%

Group distribution
HUBS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
ORCL
31.35%
MSFT
19.00%
HUBS
0.00%
PLTR
0.00%
PANW
0.00%
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Where HubSpot (HUBS) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

HubSpot (HUBS) trades at P/E ratio of 48.46, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

HUBS

Software & Services industry group

48.46

Group distribution
Max
112.94
Q3
60.32
HUBS
48.46
Median
32.91
Q1
18.77
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
HUBS
48.46
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
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Where HubSpot (HUBS) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

HubSpot (HUBS) trades at 2.73 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

HUBS

Software & Services industry group

2.73

Group distribution
Max
17.91
Q3
8.78
Median
4.25
HUBS
2.73
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
MSFT
11.37
SAP
6.84
ORCL
5.04
IBM
3.31
HUBS
2.73
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Where HubSpot (HUBS) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

HubSpot (HUBS) trades at 6.02 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

HUBS

Software & Services industry group

6.02

Group distribution
Max
16.63
Q3
8.50
HUBS
6.02
Median
4.30
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
PLTR
34.41
PANW
9.30
MSFT
8.38
IBM
6.52
HUBS
6.02
ORCL
5.68
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Where HubSpot (HUBS) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

HubSpot (HUBS) metric values compared with Software & Services industry-group medians
MetricCurrent stock: HUBSIndustry group median
P/E Ratio (TTM)48.4632.91
P/S Ratio (TTM)2.734.25
P/B Ratio (MRQ)6.024.30
Free Cash Flow Yield (TTM)6.66%3.98%