Logo image of HSBC

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

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

59.91  +1.72 (+2.96%)

After market: 59.8 -0.11 (-0.18%)

Fundamental Rating

4

HSBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. There are concerns on the financial health of HSBC while its profitability can be described as average. 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

Quickly go to:

5

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.
In the past 5 years HSBC always reported a positive cash flow from operatings.
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 85.18% of its industry peers.
HSBC has a better Return On Equity (21.21%) than 97.99% 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

HSBC has a Profit Margin of 30.20%. This is amongst the best in the industry. HSBC outperforms 84.92% of its industry peers.
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 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

More info and screens

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.
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
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.
With a Debt to FCF ratio value of 5.78, HSBC is not doing good in the industry: 66.33% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.92 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC has a worse Debt to Equity ratio (1.92) than 91.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 5.78
Altman-Z N/A
ROIC/WACCN/A
WACC6.33%
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

More info and screens

5

3. Growth

3.1 Past

HSBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.13%, which is quite impressive.
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 3.00% in the last 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)104.13%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%504.17%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%-11.19%

3.2 Future

HSBC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.74% yearly.
HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y-47.11%
EPS Next 2Y-25.11%
EPS Next 3Y-16.35%
EPS Next 5Y-11.74%
Revenue Next Year-4.28%
Revenue Next 2Y0.01%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%

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 10

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.76, the valuation of HSBC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HSBC indicates a rather cheap valuation: HSBC is cheaper than 97.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (29.43), we can say HSBC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.00, the valuation of HSBC can be described as reasonable.
84.42% of the companies in the same industry are more expensive than HSBC, based on the Price/Forward Earnings ratio.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.76
Fwd PE 9
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

95.98% 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 3.48
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

A cheap valuation may be justified as HSBC's earnings are expected to decrease with -16.35% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-25.11%
EPS Next 3Y-16.35%

More info and screens

7

5. Dividend

5.1 Amount

HSBC has a Yearly Dividend Yield of 5.73%, which is a nice return.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 3.22. HSBC pays more dividend than 93.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, HSBC pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.73%

5.2 History

On average, the dividend of HSBC grows each year by 13.67%, which is quite nice.
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

HSBC pays out 43.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.58%
EPS Next 2Y-25.11%
EPS Next 3Y-16.35%
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

More info and screens

HSBC HOLDINGS PLC-SPONS ADR

NYSE:HSBC (2/28/2025, 10:12:35 PM)

After market: 59.8 -0.11 (-0.18%)

59.91

+1.72 (+2.96%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-19 2025-02-19/bmo
Earnings (Next)07-29 2025-07-29
Inst Owners44.54%
Inst Owner Change-4.76%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap213.69B
Analysts74
Price Target54.39 (-9.21%)
Short Float %0.19%
Short Ratio5.39
Dividend
Industry RankSector Rank
Dividend Yield 5.73%
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)234.13%
Min EPS beat(2)16.08%
Max EPS beat(2)452.17%
EPS beat(4)4
Avg EPS beat(4)118.21%
Min EPS beat(4)0.49%
Max EPS beat(4)452.17%
EPS beat(8)6
Avg EPS beat(8)60.29%
EPS beat(12)10
Avg EPS beat(12)46.3%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-11.68%
Min Revenue beat(2)-27.12%
Max Revenue beat(2)3.77%
Revenue beat(4)3
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-27.12%
Max Revenue beat(4)13.42%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)9
Avg Revenue beat(12)29.24%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)3.3%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)-1.4%
Valuation
Industry RankSector Rank
PE 4.76
Fwd PE 9
P/S 1.64
P/FCF 3.48
P/OCF 3.27
P/B 1.16
P/tB 1.24
EV/EBITDA N/A
EPS(TTM)12.59
EY21.01%
EPS(NY)6.66
Fwd EY11.12%
FCF(TTM)17.22
FCFY28.74%
OCF(TTM)18.31
OCFY30.56%
SpS36.42
BVpS51.86
TBVpS48.39
PEG (NY)N/A
PEG (5Y)0.15
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
WACC6.33%
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)104.13%
EPS 3Y25.99%
EPS 5Y32.81%
EPS Q2Q%504.17%
EPS Next Y-47.11%
EPS Next 2Y-25.11%
EPS Next 3Y-16.35%
EPS Next 5Y-11.74%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%-11.19%
Revenue Next Year-4.28%
Revenue Next 2Y0.01%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-12.74%
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%