HDFC BANK LTD-ADR (HDB)
US40415F1012 - ADR
Taking everything into account, HDB scores 3 out of 10 in our fundamental rating. HDB was compared to 403 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.
In the past year HDB had a positive cash flow from operations.
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
The Return On Assets of HDB (1.67%) is better than 93.20% of its industry peers.
HDB has a Return On Equity of 14.36%. This is amongst the best in the industry. HDB outperforms 90.68% 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
Looking at the Profit Margin, with a value of 22.99%, HDB is in line with its industry, outperforming 53.90% 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.
HDB has more shares outstanding than it did 1 year ago.
HDB has more shares outstanding than it did 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.
Looking at the Debt to FCF ratio, with a value of 3.83, HDB is in line with its industry, outperforming 42.32% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that HDB has dependencies on debt financing.
HDB has a Debt to Equity ratio of 1.38. This is amonst the worse of the industry: HDB underperforms 89.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.19%
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 0.76%.
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.
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)0.76%
EPS 3Y14.99%
EPS 5Y17.05%
EPS Q2Q%4.57%
Revenue 1Y (TTM)77.48%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%9.2%
3.2 Future
Based on estimates for the next years, HDB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.93% on average per year.
The Revenue is expected to grow by 14.30% on average over the next years. This is quite good.
EPS Next Y7.97%
EPS Next 2Y11.13%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue Next Year13.16%
Revenue Next 2Y13.79%
Revenue Next 3Y14.3%
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.
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
The Price/Earnings ratio is 19.99, which indicates a rather expensive current valuation of HDB.
Compared to the rest of the industry, the Price/Earnings ratio of HDB indicates a slightly more expensive valuation: HDB is more expensive than 76.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HDB to the average of the S&P500 Index (27.34), we can say HDB is valued slightly cheaper.
HDB is valuated correctly with a Price/Forward Earnings ratio of 16.36.
HDB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HDB is more expensive than 72.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HDB to the average of the S&P500 Index (23.61), we can say HDB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HDB is valued cheaper than 83.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| 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 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)1.17
EPS Next 2Y11.13%
EPS Next 3Y12.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, HDB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, HDB's dividend is way lower than its industry peers. On top of this 81.11% of the companies listed in the same industry pay a better dividend than HDB!
With a Dividend Yield of 1.09, HDB pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
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 2Y11.13%
EPS Next 3Y12.93%
HDFC BANK LTD-ADR
NYSE:HDB (1/8/2025, 8:07:08 PM)
After market: 60.38 0 (0%)60.38
-1.09 (-1.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.91%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap153.87B
Analysts86.25
Price Target67.76 (12.22%)
Short Float %0.25%
Short Ratio7.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)1.33%
PT rev (3m)-1.56%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 16.36 | ||
| P/S | 4.39 | ||
| P/FCF | 7.59 | ||
| P/OCF | 7.41 | ||
| P/B | 2.74 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.02
EY5%
EPS(NY)3.69
Fwd EY6.11%
FCF(TTM)7.95
FCFY13.17%
OCF(TTM)8.15
OCFY13.5%
SpS13.75
BVpS22.01
TBVpS22.01
PEG (NY)2.51
PEG (5Y)1.17
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
WACC8.19%
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)0.76%
EPS 3Y14.99%
EPS 5Y17.05%
EPS Q2Q%4.57%
EPS Next Y7.97%
EPS Next 2Y11.13%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue 1Y (TTM)77.48%
Revenue growth 3Y37.98%
Revenue growth 5Y29.24%
Sales Q2Q%9.2%
Revenue Next Year13.16%
Revenue Next 2Y13.79%
Revenue Next 3Y14.3%
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