HDFC BANK LTD-ADR (HDB)
US40415F1012 - ADR
Overall HDB gets a fundamental rating of 3 out of 10. We evaluated HDB against 405 industry peers in the Banks industry. HDB may be in some trouble as it scores bad on both profitability and health. HDB is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year HDB was profitable.
HDB had a positive operating cash flow in the past year.
In the past 5 years HDB has always been profitable.
In multiple years HDB reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.67%, HDB belongs to the best of the industry, outperforming 92.80% of the companies in the same industry.
HDB has a Return On Equity of 14.36%. This is amongst the best in the industry. HDB outperforms 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 14.36% | ||
| ROIC | N/A |
ROA(3y)1.73%
ROA(5y)1.74%
ROE(3y)15.1%
ROE(5y)15.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HDB has a Profit Margin of 22.99%. This is comparable to the rest of the industry: HDB outperforms 54.59% of its industry peers.
In the last couple of years the Profit Margin of HDB has declined.
The Operating Margin and Gross Margin are not available for HDB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.99% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.5%
PM growth 5Y-4.47%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HDB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HDB has been increased compared to 1 year ago.
The number of shares outstanding for HDB has been increased compared to 5 years ago.
The debt/assets ratio for HDB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HDB is 3.83, which is a good value as it means it would take HDB, 3.83 years of fcf income to pay off all of its debts.
HDB's Debt to FCF ratio of 3.83 is in line compared to the rest of the industry. HDB outperforms 41.69% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that HDB has dependencies on debt financing.
The Debt to Equity ratio of HDB (1.38) is worse than 88.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.29%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% over the past year.
HDB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.05% yearly.
HDB shows a strong growth in Revenue. In the last year, the Revenue has grown by 77.48%.
HDB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.24% yearly.
EPS 1Y (TTM)1.06%
EPS 3Y14.99%
EPS 5Y17.05%
EPS Q2Q%4.88%
Revenue 1Y (TTM)77.48%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%9.2%
3.2 Future
The Earnings Per Share is expected to grow by 12.97% on average over the next years. This is quite good.
Based on estimates for the next years, HDB will show a quite strong growth in Revenue. The Revenue will grow by 14.30% on average per year.
EPS Next Y8.29%
EPS Next 2Y11.29%
EPS Next 3Y12.97%
EPS Next 5YN/A
Revenue Next Year13.16%
Revenue Next 2Y13.79%
Revenue Next 3Y14.3%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.92, HDB is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HDB indicates a slightly more expensive valuation: HDB is more expensive than 78.16% of the companies listed in the same industry.
HDB is valuated rather cheaply when we compare the Price/Earnings ratio to 29.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.94, HDB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HDB is valued a bit more expensive than 72.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.22, HDB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDB indicates a rather cheap valuation: HDB is cheaper than 83.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HDB does not grow enough to justify the current Price/Earnings ratio.
HDB's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.64
PEG (5Y)1.29
EPS Next 2Y11.29%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.02, HDB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.19, HDB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of HDB is nicely growing with an annual growth rate of 14.92%!
HDB has been paying a dividend for at least 10 years, so it has a reliable track record.
HDB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.92%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
21.43% of the earnings are spent on dividend by HDB. This is a low number and sustainable payout ratio.
The dividend of HDB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.43%
EPS Next 2Y11.29%
EPS Next 3Y12.97%
HDFC BANK LTD-ADR
NYSE:HDB (11/27/2024, 8:43:40 PM)
After market: 61.735 -5.76 (-8.54%)67.5
+0.85 (+1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap171.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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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)
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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 | 21.92 | ||
| Fwd PE | 17.94 | ||
| 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)2.64
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 14.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 22.99% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| 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)1.06%
EPS 3Y14.99%
EPS 5Y
EPS Q2Q%
EPS Next Y8.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)77.48%
Revenue growth 3Y37.98%
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