HUB share price in focus
HUB24 was founded in 2007 and has quickly become a leading player in the wealth management industry, providing software and management platforms that touch financial advice, superannuation, and investment management.
HUB24’s three main products are the platforms HUB24, Class, and myprosperity. HUB24 is made for financial advisers and their clients, providing access to a range of managed funds and investment products. Class is a leading software for self-managed super funds to manage portfolios, legal documentation, and compliance. myprosperity is a provider of client portals for accountants and advisers to provide an enhanced service and customer experience.
HUB24’s competitive advantage is in the quality of its service. In 2024 they’ve been awarded 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.
PLS shares
Pilbara Minerals is a leading ASX-listed lithium company, owning 100% of the world’s largest, independent hard-rock lithium operation, Pilgangoora, which it acquired in 2014.
Pilbara’s primary business is to find, dig up, and sell spodumene concentrate (a fancy word for rocks with lithium in them). It sells its concentrate through “offtake” agreements and spot sales on the Battery Material Exchange (BMX) platform. A good example of an offtake partner is Great Wall (the Chinese car company) or POSCO, a South Korean steelmaker.
Demand for lithium has skyrocketed in recent years on the back of developments in electric vehicles and renewable energy technology. Bullish investors would call Pilbara a ‘pure play’ investment in demand for green tech. However, as a commodities producer, its revenue is still at the mercy of (sometimes dramatic) fluctuations in the price of spodumene in the global market.
HUB share price valuation
As a growth company, some of the trends we would be looking for from HUB include revenue growth, profit growth, and return on equity (ROE). Since 2021, HUB has grown revenue at a rate of 44.4% per year to reach $328m in FY24. Over the same time period, net profit has increased from $10m to $47m. HUB last reported a ROE of 9.2%.
Over the last 3 years, PLS has increased revenue at a rate of 92.5% per year to hit $1,254m in FY24. Meanwhile, net profit has risen from -$51m to $257m. PLS’s last reported ROE was 7.7%.
Please keep in mind that context is important – these metrics give us some indication of company performance, but we need a lot more info to work out the value of HUB or PLS shares. To learn more about valuation, I’d recommend signing up for one of our free online investing courses.
