HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
NYSE:HDB - New York Stock Exchange, Inc. - US40415F1012 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to HDB. HDB was compared to 398 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
In the past year HDB was profitable.
In the past year HDB had a positive cash flow from operations.
Each year in the past 5 years HDB has been profitable.
In multiple years HDB reported negative operating cash flow during the last 5 years.
1.2 Ratios
HDB's Return On Assets of 1.67% is amongst the best of the industry. HDB outperforms 93.47% of its industry peers.
HDB's Return On Equity of 14.36% is amongst the best of the industry. HDB outperforms 89.45% 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
With a Profit Margin value of 22.99%, HDB perfoms like the industry average, outperforming 50.25% of the companies in the same industry.
HDB's Profit Margin has declined in the last couple of years.
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.
Compared to 1 year ago, HDB has more shares outstanding
Compared to 5 years ago, HDB has more shares outstanding
HDB has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of HDB (3.83) is worse than 62.56% of its industry peers.
HDB has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
HDB's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. HDB is outperformed by 87.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.38%
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%.
The Earnings Per Share has been growing by 17.05% on average over the past years. This is quite good.
HDB shows a strong growth in Revenue. In the last year, 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 10.55% 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 12.46% on average per year.
EPS Next Y5.52%
EPS Next 2Y8.2%
EPS Next 3Y10.55%
EPS Next 5YN/A
Revenue Next Year10.48%
Revenue Next 2Y11.38%
Revenue Next 3Y12.46%
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.
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
A Price/Earnings ratio of 23.62 indicates a rather expensive valuation of HDB.
Based on the Price/Earnings ratio, HDB is valued more expensive than 82.16% of the companies in the same industry.
HDB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 20.43, HDB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HDB indicates a slightly more expensive valuation: HDB is more expensive than 76.63% of the companies listed in the same industry.
HDB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HDB is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| 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)4.28
PEG (5Y)1.39
EPS Next 2Y8.2%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 3.78, HDB's dividend is way lower than its industry peers. On top of this 82.41% of the companies listed in the same industry pay a better dividend than HDB!
With a Dividend Yield of 1.10, HDB pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of HDB grows each year by 14.92%, which is quite nice.
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
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 2Y8.2%
EPS Next 3Y10.55%
72.04
+2.78 (+4.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.57%
Inst Owner Change0%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap183.75B
Analysts86.22
Price Target69.8 (-3.11%)
Short Float %0.77%
Short Ratio7.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.45
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)5.45%
PT rev (3m)3.01%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 20.43 | ||
| P/S | 5.21 | ||
| P/FCF | 9.01 | ||
| P/OCF | 8.79 | ||
| P/B | 3.26 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.05
EY4.23%
EPS(NY)3.53
Fwd EY4.89%
FCF(TTM)7.99
FCFY11.1%
OCF(TTM)8.19
OCFY11.37%
SpS13.81
BVpS22.12
TBVpS22.12
PEG (NY)4.28
PEG (5Y)1.39
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
WACC8.38%
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 Y5.52%
EPS Next 2Y8.2%
EPS Next 3Y10.55%
EPS Next 5YN/A
Revenue 1Y (TTM)41.76%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%6.31%
Revenue Next Year10.48%
Revenue Next 2Y11.38%
Revenue Next 3Y12.46%
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