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

NYSE:HSBC - New York Stock Exchange, Inc. - US4042804066 - ADR - Currency: USD

52.5  +0.52 (+1%)

After market: 52.8 +0.3 (+0.57%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HSBC. HSBC was compared to 398 industry peers in the Banks industry. HSBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HSBC is not valued too expensively and it also shows a decent growth rate. Finally HSBC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year HSBC was profitable.
HSBC had a positive operating cash flow in the past year.
Each year in the past 5 years HSBC has 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

1.2 Ratios

The Return On Assets of HSBC (1.30%) is better than 83.42% of its industry peers.
Looking at the Return On Equity, with a value of 21.21%, HSBC belongs to the top of the industry, outperforming 97.74% of the companies in the same industry.
Industry RankSector Rank
ROA 1.3%
ROE 21.21%
ROIC N/A
ROA(3y)0.67%
ROA(5y)0.51%
ROE(3y)10.94%
ROE(5y)8.23%
ROIC(3y)N/A
ROIC(5y)N/A
HSBC Yearly ROA, ROE, ROICHSBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

With an excellent Profit Margin value of 30.20%, HSBC belongs to the best of the industry, outperforming 83.42% of the companies in the same industry.
HSBC's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for HSBC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 30.2%
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 2015 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.
HSBC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HSBC has been reduced compared to 5 years ago.
HSBC has a worse debt/assets ratio than last year.
HSBC Yearly Shares OutstandingHSBC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
HSBC Yearly Total Debt VS Total AssetsHSBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T

2.2 Solvency

HSBC has a debt to FCF ratio of 5.78. This is a neutral value as HSBC would need 5.78 years to pay back of all of its debts.
HSBC's Debt to FCF ratio of 5.78 is on the low side compared to the rest of the industry. HSBC is outperformed by 69.35% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. HSBC is outperformed by 90.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 5.78
Altman-Z N/A
ROIC/WACCN/A
WACC5.85%
HSBC Yearly LT Debt VS Equity VS FCFHSBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 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 2015 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 been growing slightly by 7.44% over the past year.
Measured over the past years, HSBC shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.81% on average per year.
HSBC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.00%.
Measured over the past years, HSBC shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
EPS 1Y (TTM)7.44%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%16.67%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%26.75%

3.2 Future

Based on estimates for the next years, HSBC will show a small growth in Earnings Per Share. The EPS will grow by 2.69% on average per year.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y2.65%
EPS Next 2Y5.38%
EPS Next 3Y6.25%
EPS Next 5Y2.69%
Revenue Next Year-0.8%
Revenue Next 2Y0.55%
Revenue Next 3Y1.39%
Revenue Next 5Y1.82%

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 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
HSBC Yearly EPS VS EstimatesHSBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.88, the valuation of HSBC can be described as very cheap.
HSBC's Price/Earnings ratio is rather cheap when compared to the industry. HSBC is cheaper than 90.45% of the companies in the same industry.
HSBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of HSBC can be described as very cheap.
Based on the Price/Forward Earnings ratio, HSBC is valued cheaper than 84.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, HSBC is valued rather cheaply.
Industry RankSector Rank
PE 7.88
Fwd PE 7.68
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 95.98% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.03
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

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.97
PEG (5Y)0.24
EPS Next 2Y5.38%
EPS Next 3Y6.25%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.41%, HSBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.70, HSBC pays a better dividend. On top of this HSBC pays more dividend than 94.22% of the companies listed in the same industry.
HSBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
Industry RankSector Rank
Dividend Yield 6.41%

5.2 History

The dividend of HSBC is nicely growing with an annual growth rate of 13.67%!
HSBC has been paying a dividend for at least 10 years, so it has a reliable track record.
HSBC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.67%
Div Incr Years3
Div Non Decr Years3
HSBC Yearly Dividends per shareHSBC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

43.58% 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.
DP43.58%
EPS Next 2Y5.38%
EPS Next 3Y6.25%
HSBC Yearly Income VS Free CF VS DividendHSBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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 (4/17/2025, 8:26:56 PM)

After market: 52.8 +0.3 (+0.57%)

52.5

+0.52 (+1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-19 2025-02-19/bmo
Earnings (Next)04-29 2025-04-29
Inst Owners44.54%
Inst Owner Change0.02%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap185.53B
Analysts73
Price Target64.61 (23.07%)
Short Float %0.27%
Short Ratio3.62
Dividend
Industry RankSector Rank
Dividend Yield 6.41%
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-07 2025-03-07 (1.8)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.02%
Min EPS beat(2)3.96%
Max EPS beat(2)16.08%
EPS beat(4)4
Avg EPS beat(4)6.16%
Min EPS beat(4)0.49%
Max EPS beat(4)16.08%
EPS beat(8)6
Avg EPS beat(8)4.26%
EPS beat(12)10
Avg EPS beat(12)8.95%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.42%
Min Revenue beat(2)3.79%
Max Revenue beat(2)5.06%
Revenue beat(4)4
Avg Revenue beat(4)5.8%
Min Revenue beat(4)0.92%
Max Revenue beat(4)13.42%
Revenue beat(8)6
Avg Revenue beat(8)4.55%
Revenue beat(12)10
Avg Revenue beat(12)31.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.73%
PT rev (3m)22.51%
EPS NQ rev (1m)5.16%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)2.48%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.28%
Valuation
Industry RankSector Rank
PE 7.88
Fwd PE 7.68
P/S 1.43
P/FCF 3.03
P/OCF 2.85
P/B 1.01
P/tB 1.08
EV/EBITDA N/A
EPS(TTM)6.66
EY12.69%
EPS(NY)6.84
Fwd EY13.03%
FCF(TTM)17.31
FCFY32.98%
OCF(TTM)18.41
OCFY35.06%
SpS36.62
BVpS52.14
TBVpS48.65
PEG (NY)2.97
PEG (5Y)0.24
Profitability
Industry RankSector Rank
ROA 1.3%
ROE 21.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 30.2%
GM N/A
FCFM 47.28%
ROA(3y)0.67%
ROA(5y)0.51%
ROE(3y)10.94%
ROE(5y)8.23%
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 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 5.78
Debt/EBITDA N/A
Cap/Depr 95.25%
Cap/Sales 2.99%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 156.54%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC5.85%
ROIC/WACCN/A
Cap/Depr(3y)105.24%
Cap/Depr(5y)93.17%
Cap/Sales(3y)5.05%
Cap/Sales(5y)5.07%
Profit Quality(3y)191.49%
Profit Quality(5y)1191.65%
High Growth Momentum
Growth
EPS 1Y (TTM)7.44%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%16.67%
EPS Next Y2.65%
EPS Next 2Y5.38%
EPS Next 3Y6.25%
EPS Next 5Y2.69%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%26.75%
Revenue Next Year-0.8%
Revenue Next 2Y0.55%
Revenue Next 3Y1.39%
Revenue Next 5Y1.82%
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 1Y73.42%
FCF growth 3Y-15.21%
FCF growth 5Y18.66%
OCF growth 1Y66.97%
OCF growth 3Y-14.45%
OCF growth 5Y17.03%