HUB share price in focus
Founded in 2007, HUB24 has quickly become a prominent player in the wealth management sector, offering software and platform solutions for financial advice, superannuation, and investment management.
HUB24’s core products include the HUB24 platform, Class, and myprosperity. The HUB24 platform serves financial advisers and their clients, providing access to a wide range of managed funds and investment products. Class is a leading software solution for self-managed super funds (SMSFs), helping manage portfolios, legal documentation, and compliance. Myprosperity offers client portals for accountants and advisers, enhancing service and customer experience.
HUB24’s competitive edge lies in its high-quality service. In 2024, it was recognized as the Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.
DOW shares
Downer is the leading provider of integrated infrastructure services across Australia and New Zealand, specialising in the construction, maintenance, and operation of transit systems, utility services, and public infrastructure.
While the name might not instantly recognisable, their work is highly visible. For instance, Downer operates Melbourne’s Yarra Trams and manufactures the passenger trains you see in most states.
The company’s operations are divided into three primary segments: Transport, Utilities, and Facilities. The Transport division accounts for just over 50% of Downer’s revenue, with Utilities and Facilities contributing approximately 20% and 30% respectively.
HUB & DOW share price valuation
As a growth company, some of the trends we might investigate from HUB include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, HUB has grown revenue at a rate of 44.4% per year to reach $328m in FY24. Over the same stretch of time, net profit has increased from $10m to $47m. HUB last reported a ROE of 9.2%.
Since DOW is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Downer EDI Ltd reported a debt/equity ratio of 81.1%, meaning the company has more equity than debt.
As for dividends, since 2019 DOW has achieved an average dividend yield of 3.7% per year.
Finally, in FY24, DOW reported an ROE of 3.6%. For a mature business you’re generally looking for an ROE of more than 10%, so DOW’s returns are a bit less than what we’d expect.
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
