HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - NYSE:HSBC - US4042804066 - ADR
70.04 USD
+2.84 (+4.23%)
70 USD
-0.04 (-0.06%)
Overall HSBC gets a fundamental rating of 4 out of 10. We evaluated HSBC against 390 industry peers in the Banks industry. HSBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HSBC has a correct valuation and a medium growth rate. HSBC also has an excellent dividend rating.
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.
HSBC had positive earnings in each of the past 5 years.
In the past 5 years HSBC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 0.96%, HSBC is doing good in the industry, outperforming 61.28% of the companies in the same industry.
HSBC has a Return On Equity of 16.05%. This is amongst the best in the industry. HSBC outperforms 95.13% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of HSBC (24.34%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HSBC has grown nicely.
The Operating Margin and Gross Margin are not available for HSBC so they could not be analyzed.
| Industry Rank | Sector 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
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.
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.
HSBC's Debt to FCF ratio of 7.73 is on the low side compared to the rest of the industry. HSBC is outperformed by 74.87% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: HSBC underperforms 88.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.04%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HSBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.65%, which is quite good.
The Earnings Per Share has been growing by 32.82% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.05% in the past year.
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)17.65%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%14.71%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%1.74%
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 3.11% on average per year.
HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y6.27%
EPS Next 2Y5.4%
EPS Next 3Y6.88%
EPS Next 5Y3.11%
Revenue Next Year1.5%
Revenue Next 2Y1.3%
Revenue Next 3Y2.08%
Revenue Next 5Y1.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.70, the valuation of HSBC can be described as reasonable.
83.08% of the companies in the same industry are more expensive than HSBC, based on the Price/Earnings ratio.
HSBC is valuated cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.41, the valuation of HSBC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 66.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HSBC to the average of the S&P500 Index (22.88), we can say HSBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
91.79% of the companies in the same industry are more expensive than HSBC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.07 | ||
| EV/EBITDA | N/A |
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)1.55
PEG (5Y)0.3
EPS Next 2Y5.4%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.99%, HSBC is a good candidate for dividend investing.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 3.46. HSBC pays more dividend than 87.18% of the companies in the same industry.
HSBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
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.
Dividend Growth(5Y)13.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HSBC pays out 43.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HSBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y5.4%
EPS Next 3Y6.88%
70.04
+2.84 (+4.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners44.82%
Inst Owner Change0.12%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap241.48B
Revenue(TTM)127.00B
Net Income(TTM)30.91B
Analysts72.38
Price Target69.38 (-0.94%)
Short Float %0.14%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)N/A
Avg EPS beat(16)N/A
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)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.63%
PT rev (3m)7.52%
EPS NQ rev (1m)7.01%
EPS NQ rev (3m)11.06%
EPS NY rev (1m)0.62%
EPS NY rev (3m)4.52%
Revenue NQ rev (1m)5.32%
Revenue NQ rev (3m)6.27%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.41 | ||
| P/S | 1.9 | ||
| P/FCF | 5.07 | ||
| P/OCF | 4.66 | ||
| P/B | 1.25 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.22
EY10.31%
EPS(NY)7.44
Fwd EY10.63%
FCF(TTM)13.81
FCFY19.71%
OCF(TTM)15.02
OCFY21.45%
SpS36.84
BVpS55.85
TBVpS52.07
PEG (NY)1.55
PEG (5Y)0.3
Graham Number95.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.04%
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)17.65%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%14.71%
EPS Next Y6.27%
EPS Next 2Y5.4%
EPS Next 3Y6.88%
EPS Next 5Y3.11%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%1.74%
Revenue Next Year1.5%
Revenue Next 2Y1.3%
Revenue Next 3Y2.08%
Revenue Next 5Y1.96%
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.
What is the valuation status for HSBC stock?
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 expected EPS growth for HSBC stock?
The Earnings per Share (EPS) of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is expected to grow by 6.27% in the next year.
Is the dividend of HSBC HOLDINGS PLC-SPONS ADR sustainable?
The dividend rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 7 / 10 and the dividend payout ratio is 43.96%.