HubSpot, Inc.
$222.45
-7.4%HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes marketing, sales, service, and content management systems, as well as integrated applications, such as search engine optimization, blogging, website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, knowledge base, commerce, conversation routing, video hosting, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting. It also offers professional services to educate and train customers on how to leverage its CRM platform, as well as phone and/or email and chat-based support services. The company serves mid-market business-to-business companies. HubSpot, Inc. was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 252.8).
Valuation inputs: P/E 252.8, earnings yield +0.4%, momentum -7.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +2.2%, ROIC +0.3%).
Profitability stack: net margin +1.5%, ROE +2.2%, ROIC +0.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +46.4%, momentum -7.4%, net margin +1.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
HubSpot, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Strong earnings growth indicates robust business expansion and improving profitability.
Price-EPS Relationship
Earnings are growing but price is falling—potential undervaluation opportunity if growth continues.
Stock Price Change
Over the 1Y period, stock price has decreased by 62.9%.
P/E Ratio (TTM)
Very high P/E suggests premium valuation or high growth expectations.
Key Insight
Strong earnings growth (+960.3%) is outpacing price appreciation (+-62.9%), potentially indicating an attractive entry point as the market may not have fully recognized the improving fundamentals.
HubSpot, Inc. Fair Value Envelope
HubSpot, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
HubSpot, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
HubSpot, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
HubSpot, Inc. Street Expectations Map
Wall Street analysts project that HUBS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 285.14, with estimates ranging from a low of 190.00 to a high of 400.00.
The consensus 1-year price target stands at 285.14, with estimates ranging from a low of 190.00 to a high of 400.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
HubSpot, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.59M and sold $42.87M worth of HUBS shares, resulting in $40.29M of net selling activity.
3 Months
14.1K
2.59M
26.2K
6.23M
-3.6M
-$3.65M
3-6 Months
0
0.00
26.7K
8.14M
-8.1M
-$8.14M
6-9 Months
0
0.00
30.5K
13.75M
-13.8M
-$13.75M
9-12 Months
0
0.00
28.5K
14.75M
-14.8M
-$14.75M
Top Buyers
Shah Dharmesh
Director, Officer: Chief Technology Officer
$1.81M
Rangan Yamini
Director, Officer: Chief Executive Officer & Pres
$522K
Norrington Lorrie M
Director
$250K
Top Sellers
Halligan Brian
Director
$38.15M
Rangan Yamini
Director, Officer: Chief Executive Officer & Pres
$2.75M
Shah Dharmesh
Director, Officer: Chief Technology Officer
$708K
Bueker Kathryn
Officer: Chief Financial Officer
$706K
Fisher Erika Ashley
Officer: Chief Legal Officer
$565K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $40.29M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Negative recent trend with net selling. Insiders have reduced positions in recent months, which could signal caution.
Insider Participation
5 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
HUBS has not reported any dividend yield values in the available annual periods.
hubs Dividend History
Learning Layer
Related Guides
Build conviction on HUBS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.