HubSpot (HUBS) Q4 FY12/23 Earnings Review
HubSpot delivered a so-what quarter - growth down a little and cashflow margins not improving from their current low levels.
Valuation is rich indeed at 160x TTM unlevered pretax free cashflow.
The chart looks short-term extended, although if the market rises this year as we expect, the stock can rise of course.
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Why Bother Though?
by Alex King
On technicals, and because we think the market will continue to rise through year end, we rate HUBS at Hold on a long term basis. Personally I don’t own the stock and have no plans to do so. I did well with this one in 2020/21 but can’t think of a reason to buy it right now. Fundamentals are fine but not particularly wonderful (growth is slowing and cashflow margins are poor); short term the stock chart looks extended, as do most all software names.
Oh also the market wants you to pay 160x TTM cashflow.
Numbers, valuation, and chart follow below.
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