HSBC HOLDINGS PLC (HBC1.DE)
GB0005405286 - Common Stock
Overall HBC1 gets a fundamental rating of 4 out of 10. We evaluated HBC1 against 89 industry peers in the Banks industry. There are concerns on the financial health of HBC1 while its profitability can be described as average. HBC1 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HBC1 had positive earnings in the past year.
HBC1 had a positive operating cash flow in the past year.
In the past 5 years HBC1 has always been profitable.
Each year in the past 5 years HBC1 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HBC1 (1.27%) is better than 84.88% of its industry peers.
With an excellent Return On Equity value of 20.65%, HBC1 belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 20.65% | ||
| ROIC | N/A |
ROA(3y)0.56%
ROA(5y)0.4%
ROE(3y)8.93%
ROE(5y)6.41%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 30.72%, HBC1 belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
In the last couple of years the Profit Margin of HBC1 has grown nicely.
HBC1 does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 30.72% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y67.71%
PM growth 5Y8.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HBC1 does not have a ROIC to compare to the WACC, probably because it is not profitable.
HBC1 has less shares outstanding than it did 1 year ago.
HBC1 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HBC1 is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HBC1 is 11.57, which is on the high side as it means it would take HBC1, 11.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HBC1 (11.57) is better than 76.74% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that HBC1 has dependencies on debt financing.
HBC1 has a Debt to Equity ratio (2.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 11.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.42%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HBC1 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.03%.
HBC1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.68% yearly.
HBC1 shows a decrease in Revenue. In the last year, the revenue decreased by -1.16%.
HBC1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.08% yearly.
EPS 1Y (TTM)-4.03%
EPS 3Y81.95%
EPS 5Y12.68%
EPS Q2Q%0%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y6.85%
Revenue growth 5Y3.08%
Sales Q2Q%-0.99%
3.2 Future
HBC1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.53% yearly.
The Revenue is expected to grow by 1.14% on average over the next years.
EPS Next Y5.63%
EPS Next 2Y2.18%
EPS Next 3Y2.11%
EPS Next 5Y0.53%
Revenue Next Year-0.78%
Revenue Next 2Y-1.64%
Revenue Next 3Y-0.64%
Revenue Next 5Y1.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.36, the valuation of HBC1 can be described as very cheap.
HBC1's Price/Earnings is on the same level as the industry average.
HBC1's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.52.
HBC1 is valuated cheaply with a Price/Forward Earnings ratio of 6.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBC1 indicates a somewhat cheap valuation: HBC1 is cheaper than 69.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.99. HBC1 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
HBC1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HBC1 is cheaper than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.01 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.31
PEG (5Y)0.58
EPS Next 2Y2.18%
EPS Next 3Y2.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.11%, HBC1 is a good candidate for dividend investing.
HBC1's Dividend Yield is a higher than the industry average which is at 5.70.
HBC1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
5.2 History
The dividend of HBC1 has a limited annual growth rate of 2.95%.
Dividend Growth(5Y)2.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.89% of the earnings are spent on dividend by HBC1. This is a bit on the high side, but may be sustainable.
The dividend of HBC1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.89%
EPS Next 2Y2.18%
EPS Next 3Y2.11%
HSBC HOLDINGS PLC
FRA:HBC1 (9/13/2024, 7:00:00 PM)
7.871
+0.05 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 6.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 20.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 30.72% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.03%
EPS 3Y81.95%
EPS 5Y
EPS Q2Q%
EPS Next Y5.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y6.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y