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

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

52.16  +0.2 (+0.38%)

After market: 52.16 0 (0%)

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. HSBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HSBC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally HSBC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

HSBC had positive earnings in the past year.
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 0 50B 100B 150B

1.2 Ratios

HSBC's Return On Assets of 1.27% is amongst the best of the industry. HSBC outperforms 84.92% of its industry peers.
HSBC has a Return On Equity of 20.65%. This is amongst the best in the industry. HSBC outperforms 98.24% of its industry peers.
Industry RankSector Rank
ROA 1.27%
ROE 20.65%
ROIC N/A
ROA(3y)0.56%
ROA(5y)0.4%
ROE(3y)8.93%
ROE(5y)6.41%
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 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 30.72%, HSBC belongs to the top of the industry, outperforming 85.43% 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 RankSector Rank
OM N/A
PM (TTM) 30.72%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y67.71%
PM growth 5Y8.86%
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 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.
Compared to 5 years ago, HSBC has less shares outstanding
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 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 1T 2T 3T

2.2 Solvency

The Debt to FCF ratio of HSBC is 11.57, which is on the high side as it means it would take HSBC, 11.57 years of fcf income to pay off all of its debts.
HSBC's Debt to FCF ratio of 11.57 is on the low side compared to the rest of the industry. HSBC is outperformed by 74.12% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that HSBC has dependencies on debt financing.
The Debt to Equity ratio of HSBC (2.02) is worse than 92.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF 11.57
Altman-Z N/A
ROIC/WACCN/A
WACC6.09%
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 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 50B 100B 150B 200B 250B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.61% over the past year.
Measured over the past years, HSBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.68% on average per year.
The Revenue has grown by 11.75% in the past year. This is quite good.
Measured over the past years, HSBC shows a small growth in Revenue. The Revenue has been growing by 3.08% on average per year.
EPS 1Y (TTM)1.61%
EPS 3Y81.95%
EPS 5Y12.68%
EPS Q2Q%25.93%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y6.85%
Revenue growth 5Y3.08%
Sales Q2Q%5.18%

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 4.25% on average per year.
Based on estimates for the next years, HSBC will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y7.6%
EPS Next 2Y1.87%
EPS Next 3Y2.46%
EPS Next 5Y4.25%
Revenue Next Year0.01%
Revenue Next 2Y-2.33%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.45%

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 decreasing.
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

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7

4. Valuation

4.1 Price/Earnings Ratio

HSBC is valuated cheaply with a Price/Earnings ratio of 7.90.
Based on the Price/Earnings ratio, HSBC is valued cheaply inside the industry as 92.71% of the companies are valued more expensively.
HSBC is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
HSBC is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSBC indicates a rather cheap valuation: HSBC is cheaper than 91.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, HSBC is valued rather cheaply.
Industry RankSector Rank
PE 7.9
Fwd PE 7.92
HSBC Price Earnings VS Forward Price EarningsHSBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, HSBC is valued cheaper than 89.20% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.86
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

HSBC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)0.62
EPS Next 2Y1.87%
EPS Next 3Y2.46%

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8

5. Dividend

5.1 Amount

HSBC has a Yearly Dividend Yield of 5.80%, which is a nice return.
Compared to an average industry Dividend Yield of 3.17, HSBC pays a better dividend. On top of this HSBC pays more dividend than 94.47% 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 2.27.
Industry RankSector Rank
Dividend Yield 5.8%

5.2 History

The dividend of HSBC has a limited annual growth rate of 2.95%.
HSBC has paid a dividend for at least 10 years, which is a reliable track record.
HSBC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.95%
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 1 2 3 4

5.3 Sustainability

HSBC pays out 45.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
HSBC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.89%
EPS Next 2Y1.87%
EPS Next 3Y2.46%
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 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 (1/29/2025, 8:04:00 PM)

After market: 52.16 0 (0%)

52.16

+0.2 (+0.38%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-29 2024-10-29/bmo
Earnings (Next)02-19 2025-02-19/amc
Inst Owners45.98%
Inst Owner Change-5.14%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap186.93B
Analysts72.63
Price Target52.74 (1.11%)
Short Float %0.19%
Short Ratio6.24
Dividend
Industry RankSector Rank
Dividend Yield 5.8%
Yearly Dividend0.62
Dividend Growth(5Y)2.95%
DP45.89%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)0.49%
Max EPS beat(2)4.11%
EPS beat(4)2
Avg EPS beat(4)-5.08%
Min EPS beat(4)-13.06%
Max EPS beat(4)4.11%
EPS beat(8)6
Avg EPS beat(8)8.65%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.17%
Min Revenue beat(2)0.92%
Max Revenue beat(2)13.42%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-11.97%
Max Revenue beat(4)13.42%
Revenue beat(8)6
Avg Revenue beat(8)27.9%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.34%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.84%
Valuation
Industry RankSector Rank
PE 7.9
Fwd PE 7.92
P/S 1.52
P/FCF 5.86
P/OCF 5.24
P/B 1.02
P/tB 1.09
EV/EBITDA N/A
EPS(TTM)6.6
EY12.65%
EPS(NY)6.58
Fwd EY12.62%
FCF(TTM)8.91
FCFY17.08%
OCF(TTM)9.96
OCFY19.09%
SpS34.39
BVpS51.15
TBVpS47.75
PEG (NY)1.04
PEG (5Y)0.62
Profitability
Industry RankSector Rank
ROA 1.27%
ROE 20.65%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 30.72%
GM N/A
FCFM 25.9%
ROA(3y)0.56%
ROA(5y)0.4%
ROE(3y)8.93%
ROE(5y)6.41%
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 3Y67.71%
PM growth 5Y8.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF 11.57
Debt/EBITDA N/A
Cap/Depr 97.94%
Cap/Sales 3.05%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 84.33%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC6.09%
ROIC/WACCN/A
Cap/Depr(3y)101.22%
Cap/Depr(5y)81.03%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.07%
Profit Quality(3y)368.54%
Profit Quality(5y)1225.54%
High Growth Momentum
Growth
EPS 1Y (TTM)1.61%
EPS 3Y81.95%
EPS 5Y12.68%
EPS Q2Q%25.93%
EPS Next Y7.6%
EPS Next 2Y1.87%
EPS Next 3Y2.46%
EPS Next 5Y4.25%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y6.85%
Revenue growth 5Y3.08%
Sales Q2Q%5.18%
Revenue Next Year0.01%
Revenue Next 2Y-2.33%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.45%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3Y-9.38%
EBIT Next 5YN/A
FCF growth 1Y-61.56%
FCF growth 3Y-41.7%
FCF growth 5Y3.74%
OCF growth 1Y-59.01%
OCF growth 3Y-40.13%
OCF growth 5Y3.76%