HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
NYSE:HDB - New York Stock Exchange, Inc. - US40415F1012 - ADR - Currency: USD
Taking everything into account, HDB scores 3 out of 10 in our fundamental rating. HDB was compared to 404 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
HDB had positive earnings in the past year.
HDB had a positive operating cash flow in the past year.
Each year in the past 5 years HDB has been profitable.
The reported operating cash flow has been mixed in the past 5 years: HDB reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 1.67%, HDB belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
The Return On Equity of HDB (14.36%) is better than 89.70% 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's Profit Margin of 22.99% is in line compared to the rest of the industry. HDB outperforms 53.77% of its industry peers.
In the last couple of years the Profit Margin of HDB has declined.
HDB 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) | 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.
Compared to 1 year ago, HDB has a worse debt to assets ratio.
2.2 Solvency
HDB has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as HDB would need 3.83 years to pay back of all of its debts.
HDB has a Debt to FCF ratio (3.83) which is in line with 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 89.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.18%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HDB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.59%.
Measured over the past years, HDB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.05% on average per year.
Looking at the last year, HDB shows a very strong growth in Revenue. The Revenue has grown by 41.76%.
The Revenue has been growing by 29.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1.59%
EPS 3Y14.99%
EPS 5Y17.05%
EPS Q2Q%1.44%
Revenue 1Y (TTM)41.76%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.62% on average over the next years. This is quite good.
EPS Next Y5.75%
EPS Next 2Y8.41%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue Next Year11.85%
Revenue Next 2Y12.74%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.76, 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 79.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HDB to the average of the S&P500 Index (29.63), we can say HDB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.03, the valuation of HDB can be described as rather expensive.
72.36% of the companies in the same industry are cheaper than HDB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. HDB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
84.92% of the companies in the same industry are more expensive than HDB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| 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.
PEG (NY)3.44
PEG (5Y)1.16
EPS Next 2Y8.41%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
HDB's Dividend Yield is slightly below the industry average, which is at 3.15.
With a Dividend Yield of 1.15, HDB pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of HDB grows each year by 14.92%, which is quite nice.
HDB has paid a dividend for at least 10 years, which is 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
HDB pays out 21.43% of its income as dividend. This is a sustainable payout ratio.
HDB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.43%
EPS Next 2Y8.41%
EPS Next 3Y10.52%
59.48
-0.1 (-0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.91%
Inst Owner Change1.92%
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap151.68B
Analysts87.08
Price Target64.11 (7.78%)
Short Float %0.57%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend12.76
Dividend Growth(5Y)14.92%
DP21.43%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.98%
Min EPS beat(2)-1.95%
Max EPS beat(2)-0.01%
EPS beat(4)1
Avg EPS beat(4)-4.56%
Min EPS beat(4)-16.55%
Max EPS beat(4)0.28%
EPS beat(8)2
Avg EPS beat(8)-4.2%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)-3.95%
Revenue beat(4)1
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-4.52%
Max Revenue beat(4)13.3%
Revenue beat(8)3
Avg Revenue beat(8)0.73%
Revenue beat(12)7
Avg Revenue beat(12)2.9%
Revenue beat(16)10
Avg Revenue beat(16)3.34%
PT rev (1m)-5.39%
PT rev (3m)-7.87%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)-4.79%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 17.03 | ||
| P/S | 4.36 | ||
| P/FCF | 7.54 | ||
| P/OCF | 7.36 | ||
| P/B | 2.73 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.01
EY5.06%
EPS(NY)3.49
Fwd EY5.87%
FCF(TTM)7.89
FCFY13.26%
OCF(TTM)8.08
OCFY13.59%
SpS13.63
BVpS21.82
TBVpS21.82
PEG (NY)3.44
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 14.36% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.99% | ||
| GM | N/A | ||
| FCFM | 57.86% |
ROA(3y)1.73%
ROA(5y)1.74%
ROE(3y)15.1%
ROE(5y)15.19%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 125.29% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 251.69% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.18%
ROIC/WACCN/A
Cap/Depr(3y)139.83%
Cap/Depr(5y)134.01%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.59%
EPS 3Y14.99%
EPS 5Y17.05%
EPS Q2Q%1.44%
EPS Next Y5.75%
EPS Next 2Y8.41%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue 1Y (TTM)41.76%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%6.31%
Revenue Next Year11.85%
Revenue Next 2Y12.74%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y244.08%
FCF growth 3Y-13.97%
FCF growth 5YN/A
OCF growth 1Y250.87%
OCF growth 3Y-10.7%
OCF growth 5YN/A