HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HSBC • US4042804066
88.87 USD
+0.86 (+0.98%)
Last: Feb 2, 2026, 11:11 AM
Taking everything into account, HSBC scores 3 out of 10 in our fundamental rating. HSBC was compared to 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.
1. Profitability
1.1 Basic Checks
- HSBC had positive earnings in the past year.
- In the past year HSBC had a positive cash flow from operations.
- In the past 5 years HSBC has always been profitable.
- Each year in the past 5 years HSBC had a positive operating cash flow.
1.2 Ratios
- HSBC has a Return On Assets (0.96%) which is in line with its industry peers.
- HSBC has a better Return On Equity (16.05%) than 95.04% 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
- With a Profit Margin value of 24.34%, HSBC perfoms like the industry average, outperforming 49.35% of the companies in the same industry.
- HSBC's Profit Margin has improved in the last couple of years.
- HSBC 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) | 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.
- The number of shares outstanding for HSBC has been reduced compared to 1 year ago.
- HSBC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HSBC is higher compared to a year ago.
2.2 Solvency
- HSBC has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as HSBC would need 7.73 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 7.73, HSBC is not doing good in the industry: 75.72% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
- HSBC's Debt to Equity ratio of 1.91 is on the low side compared to the rest of the industry. HSBC is outperformed by 87.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.5%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.70% over the past year.
- The Earnings Per Share has been growing by 13.51% on average over the past years. This is quite good.
- The Revenue has decreased by -1.62% in the past year.
- The Revenue has been growing slightly by 1.30% on average over the past years.
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
- The Earnings Per Share is expected to grow by 3.52% on average over the next years.
- The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y10.49%
EPS Next 2Y8.9%
EPS Next 3Y8.96%
EPS Next 5Y3.52%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%
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
- A Price/Earnings ratio of 12.43 indicates a correct valuation of HSBC.
- Compared to the rest of the industry, the Price/Earnings ratio of HSBC is on the same level as its industry peers.
- HSBC is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.44, the valuation of HSBC can be described as very reasonable.
- HSBC's Price/Forward Earnings ratio is in line with the industry average.
- HSBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
- HSBC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HSBC is cheaper than 89.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.41 | ||
| 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)1.18
PEG (5Y)0.92
EPS Next 2Y8.9%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
- HSBC has a Yearly Dividend Yield of 3.90%.
- HSBC's Dividend Yield is rather good when compared to the industry average which is at 2.67. HSBC pays more dividend than 82.77% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, HSBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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 2Y8.9%
EPS Next 3Y8.96%
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 3 / 10 to HSBC.
Can you provide the valuation status for HSBC HOLDINGS PLC-SPONS ADR?
ChartMill assigns a valuation rating of 5 / 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 6 / 10 and the dividend payout ratio is 43.96%.