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HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR

82.5 USD
-0.03 (-0.04%)
Last: 1/20/2026, 8:04:00 PM
81.77 USD
-0.73 (-0.88%)
Pre-Market: 1/21/2026, 7:15:51 AM
Fundamental Rating

4

HSBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. There are concerns on the financial health of HSBC while its profitability can be described as average. HSBC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year HSBC was profitable.
  • In the past year HSBC had a positive cash flow from operations.
  • In the past 5 years HSBC has always been profitable.
  • HSBC had a positive operating cash flow in each of the past 5 years.
HSBC Yearly Net Income VS EBIT VS OCF VS FCFHSBC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

1.2 Ratios

  • HSBC has a Return On Assets of 0.96%. This is comparable to the rest of the industry: HSBC outperforms 55.87% of its industry peers.
  • HSBC has a better Return On Equity (16.05%) than 95.04% of its industry peers.
Industry RankSector Rank
ROA 0.96%
ROE 16.05%
ROIC N/A
ROA(3y)0.66%
ROA(5y)0.51%
ROE(3y)10.85%
ROE(5y)8.24%
ROIC(3y)N/A
ROIC(5y)N/A
HSBC Yearly ROA, ROE, ROICHSBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • HSBC's Profit Margin of 24.34% is in line compared to the rest of the industry. HSBC outperforms 49.35% of its industry peers.
  • In the last couple of years the Profit Margin of HSBC has grown nicely.
  • HSBC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 24.34%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
HSBC Yearly Profit, Operating, Gross MarginsHSBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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1

2. Health

2.1 Basic Checks

  • HSBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, HSBC has less shares outstanding
  • The number of shares outstanding for HSBC has been reduced compared to 5 years ago.
  • Compared to 1 year ago, HSBC has a worse debt to assets ratio.
HSBC Yearly Shares OutstandingHSBC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
HSBC Yearly Total Debt VS Total AssetsHSBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T

2.2 Solvency

  • The Debt to FCF ratio of HSBC is 7.73, which is on the high side as it means it would take HSBC, 7.73 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 7.73, HSBC is doing worse than 76.24% of the companies in the same industry.
  • A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.91, HSBC is not doing good in the industry: 87.99% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF 7.73
Altman-Z N/A
ROIC/WACCN/A
WACC6.4%
HSBC Yearly LT Debt VS Equity VS FCFHSBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B 200B 250B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HSBC Yearly Current Assets VS Current LiabilitesHSBC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.70% over the past year.
  • Measured over the past years, HSBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.51% on average per year.
  • The Revenue has decreased by -1.62% in the past year.
  • HSBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)12.7%
EPS 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%

3.2 Future

  • HSBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.52% yearly.
  • HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%

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 accelerating.
HSBC Yearly Revenue VS EstimatesHSBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
HSBC Yearly EPS VS EstimatesHSBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.54 indicates a reasonable valuation of HSBC.
  • Based on the Price/Earnings ratio, HSBC is valued a bit cheaper than the industry average as 64.49% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (26.94), we can say HSBC is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.62, the valuation of HSBC can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HSBC is on the same level as its industry peers.
  • HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.54
Fwd PE 10.62
HSBC Price Earnings VS Forward Price EarningsHSBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, HSBC is valued cheaply inside the industry as 90.60% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.95
EV/EBITDA N/A
HSBC Per share dataHSBC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • HSBC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.17
PEG (5Y)0.85
EPS Next 2Y8.92%
EPS Next 3Y8.98%

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6

5. Dividend

5.1 Amount

  • HSBC has a Yearly Dividend Yield of 4.01%, which is a nice return.
  • HSBC's Dividend Yield is a higher than the industry average which is at 2.85.
  • HSBC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 4.01%

5.2 History

  • The dividend of HSBC is nicely growing with an annual growth rate of 13.67%!
  • HSBC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.67%
Div Incr Years0
Div Non Decr Years0
HSBC Yearly Dividends per shareHSBC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

  • 43.96% of the earnings are spent on dividend by HSBC. This is a bit on the high side, but may be sustainable.
  • HSBC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
HSBC Yearly Income VS Free CF VS DividendHSBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B
HSBC Dividend Payout.HSBC Dividend Payout, showing the Payout Ratio.HSBC Dividend Payout.PayoutRetained Earnings

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HSBC HOLDINGS PLC-SPONS ADR

NYSE:HSBC (1/20/2026, 8:04:00 PM)

Premarket: 81.77 -0.73 (-0.88%)

82.5

-0.03 (-0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-28
Earnings (Next)02-25
Inst Owners45.11%
Inst Owner Change-0.01%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap283.24B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts73.68
Price Target77.84 (-5.65%)
Short Float %0.16%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 4.01%
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.91%
Min EPS beat(2)17.01%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)13.97%
Min EPS beat(4)3.96%
Max EPS beat(4)18.81%
EPS beat(8)6
Avg EPS beat(8)4.44%
EPS beat(12)10
Avg EPS beat(12)10.42%
EPS beat(16)13
Avg EPS beat(16)10.07%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)3.16%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)5.06%
Revenue beat(8)5
Avg Revenue beat(8)1.36%
Revenue beat(12)9
Avg Revenue beat(12)15.86%
Revenue beat(16)13
Avg Revenue beat(16)34.2%
PT rev (1m)4.67%
PT rev (3m)12.19%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)1.8%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.59%
Valuation
Industry RankSector Rank
PE 11.54
Fwd PE 10.62
P/S 2.23
P/FCF 5.95
P/OCF 5.47
P/B 1.47
P/tB 1.58
EV/EBITDA N/A
EPS(TTM)7.15
EY8.67%
EPS(NY)7.77
Fwd EY9.42%
FCF(TTM)13.87
FCFY16.81%
OCF(TTM)15.08
OCFY18.28%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.17
PEG (5Y)0.85
Graham Number94.99
Profitability
Industry RankSector Rank
ROA 0.96%
ROE 16.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 24.34%
GM N/A
FCFM 37.48%
ROA(3y)0.66%
ROA(5y)0.51%
ROE(3y)10.85%
ROE(5y)8.24%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF 7.73
Debt/EBITDA N/A
Cap/Depr 96.49%
Cap/Sales 3.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 154.02%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC6.4%
ROIC/WACCN/A
Cap/Depr(3y)105.46%
Cap/Depr(5y)93.3%
Cap/Sales(3y)5.5%
Cap/Sales(5y)5.34%
Profit Quality(3y)176.69%
Profit Quality(5y)1182.77%
High Growth Momentum
Growth
EPS 1Y (TTM)12.7%
EPS 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-13.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1575.61%
FCF growth 3Y-15.21%
FCF growth 5Y18.66%
OCF growth 1Y653.5%
OCF growth 3Y-14.45%
OCF growth 5Y17.03%

HSBC HOLDINGS PLC-SPONS ADR / HSBC FAQ

Can you provide the ChartMill fundamental rating for HSBC HOLDINGS PLC-SPONS ADR?

ChartMill assigns a fundamental rating of 4 / 10 to HSBC.


Can you provide the valuation status for HSBC HOLDINGS PLC-SPONS ADR?

ChartMill assigns a valuation rating of 6 / 10 to HSBC HOLDINGS PLC-SPONS ADR (HSBC). This can be considered as Fairly Valued.


What is the profitability of HSBC stock?

HSBC HOLDINGS PLC-SPONS ADR (HSBC) has a profitability rating of 4 / 10.


Can you provide the financial health for HSBC stock?

The financial health rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 1 / 10.


Can you provide the dividend sustainability for HSBC stock?

The dividend rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 7 / 10 and the dividend payout ratio is 43.96%.