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

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

60.27  -0.52 (-0.86%)

After market: 60.27 0 (0%)

Fundamental Rating

4

Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. HSBC was compared to 395 industry peers in the Banks industry. While HSBC is still in line with the averages on profitability rating, there are concerns on its financial health. HSBC is not valued too expensively and it also shows a decent growth rate. 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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

1.2 Ratios

HSBC has a better Return On Assets (1.30%) than 83.29% of its industry peers.
HSBC's Return On Equity of 21.21% is amongst the best of the industry. HSBC outperforms 98.23% of its industry peers.
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

The Profit Margin of HSBC (30.20%) is better than 82.78% of its industry peers.
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 RankSector Rank
OM N/A
PM (TTM) 30.2%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y19.27%
PM growth 5Y31.17%
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 10 20 30

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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.
The number of shares outstanding for HSBC has been reduced compared to 1 year ago.
Compared to 5 years ago, HSBC has less shares outstanding
Compared to 1 year ago, HSBC has a worse debt to assets ratio.
HSBC Yearly Shares OutstandingHSBC Yearly Shares OutstandingYearly Shares Outstanding 2015 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 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 72.91% 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 has a Debt to Equity ratio of 1.92. This is amonst the worse of the industry: HSBC underperforms 90.13% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 5.78
Altman-Z N/A
ROIC/WACCN/A
WACC5.8%
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 grown by an nice 13.45% over the past year.
The Earnings Per Share has been growing by 32.81% on average over the past years. This is a very strong growth
Looking at the last year, HSBC shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
The Revenue has been decreasing by -0.23% on average over the past years.
EPS 1Y (TTM)13.45%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%14.71%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y2.33%
Revenue growth 5Y-0.23%
Sales Q2Q%-16.66%

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 3.25% on average per year.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y2.81%
EPS Next 2Y4.81%
EPS Next 3Y5.99%
EPS Next 5Y3.25%
Revenue Next Year-0.04%
Revenue Next 2Y0.58%
Revenue Next 3Y1.4%
Revenue Next 5Y1.82%

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.
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

A Price/Earnings ratio of 8.81 indicates a reasonable valuation of HSBC.
Compared to the rest of the industry, the Price/Earnings ratio of HSBC indicates a rather cheap valuation: HSBC is cheaper than 89.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (27.21), we can say HSBC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of HSBC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 74.18% of the companies listed in the same industry.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.81
Fwd PE 8.33
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

94.43% of the companies in the same industry are more expensive than HSBC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.44
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)3.13
PEG (5Y)0.27
EPS Next 2Y4.81%
EPS Next 3Y5.99%

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7

5. Dividend

5.1 Amount

HSBC has a Yearly Dividend Yield of 5.72%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, HSBC pays a better dividend. On top of this HSBC pays more dividend than 89.87% 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 2.42.
Industry RankSector Rank
Dividend Yield 5.72%

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
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.
The dividend of HSBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.58%
EPS Next 2Y4.81%
EPS Next 3Y5.99%
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 (7/1/2025, 7:07:13 PM)

After market: 60.27 0 (0%)

60.27

-0.52 (-0.86%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-30 2025-07-30
Inst Owners38.09%
Inst Owner Change39.66%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap211.55B
Analysts73
Price Target65.58 (8.81%)
Short Float %0.15%
Short Ratio3.43
Dividend
Industry RankSector Rank
Dividend Yield 5.72%
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-09 2025-05-09 (0.5)
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)0.91%
PT rev (3m)1.78%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)3.83%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
Industry RankSector Rank
PE 8.81
Fwd PE 8.33
P/S 1.63
P/FCF 3.44
P/OCF 3.24
P/B 1.14
P/tB 1.23
EV/EBITDA N/A
EPS(TTM)6.84
EY11.35%
EPS(NY)7.23
Fwd EY12%
FCF(TTM)17.5
FCFY29.03%
OCF(TTM)18.61
OCFY30.87%
SpS37.01
BVpS52.7
TBVpS49.17
PEG (NY)3.13
PEG (5Y)0.27
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 3Y19.27%
PM growth 5Y31.17%
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
WACC5.8%
ROIC/WACCN/A
Cap/Depr(3y)105.24%
Cap/Depr(5y)93.17%
Cap/Sales(3y)5.33%
Cap/Sales(5y)5.24%
Profit Quality(3y)191.49%
Profit Quality(5y)1191.65%
High Growth Momentum
Growth
EPS 1Y (TTM)13.45%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%14.71%
EPS Next Y2.81%
EPS Next 2Y4.81%
EPS Next 3Y5.99%
EPS Next 5Y3.25%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y2.33%
Revenue growth 5Y-0.23%
Sales Q2Q%-16.66%
Revenue Next Year-0.04%
Revenue Next 2Y0.58%
Revenue Next 3Y1.4%
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%