HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
74.99 USD
-0.25 (-0.33%)
74.99 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HSBC. HSBC was compared to 387 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 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.
Each year in the past 5 years HSBC has 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 of 0.96%. This is comparable to the rest of the industry: HSBC outperforms 56.85% of its industry peers.
HSBC's Return On Equity of 16.05% is amongst the best of the industry. HSBC outperforms 95.09% 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 49.87% 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.
HSBC has a worse debt/assets ratio than last year.
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: 76.49% of the companies in the same industry are doing better.
HSBC has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
HSBC has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: HSBC underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.28%
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 12.70%, which is quite good.
HSBC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.82% yearly.
Looking at the last year, HSBC shows a decrease in Revenue. The Revenue has decreased by -1.62% in the last 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)12.7%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
3.2 Future
HSBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.52% yearly.
HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y7.93%
EPS Next 2Y7.68%
EPS Next 3Y8.23%
EPS Next 5Y3.52%
Revenue Next Year2.56%
Revenue Next 2Y2.31%
Revenue Next 3Y2.62%
Revenue Next 5Y2.23%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HSBC is valuated reasonably with a Price/Earnings ratio of 10.49.
Based on the Price/Earnings ratio, HSBC is valued a bit cheaper than the industry average as 78.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.54. HSBC is valued rather cheaply when compared to this.
HSBC is valuated reasonably with a Price/Forward Earnings ratio of 9.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 63.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, HSBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HSBC is valued cheaper than 91.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.41 | ||
| 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)1.32
PEG (5Y)0.32
EPS Next 2Y7.68%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, HSBC is a good candidate for dividend investing.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 3.11. HSBC pays more dividend than 88.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HSBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
On average, the dividend of HSBC grows each year by 13.67%, which is quite nice.
HSBC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
43.96% 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.
DP43.96%
EPS Next 2Y7.68%
EPS Next 3Y8.23%
74.99
-0.25 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners44.82%
Inst Owner Change2.33%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap257.45B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target74.37 (-0.83%)
Short Float %0.15%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)4.96%
PT rev (3m)9.63%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)0.98%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.88 | ||
| P/S | 2.03 | ||
| P/FCF | 5.41 | ||
| P/OCF | 4.97 | ||
| P/B | 1.34 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY9.53%
EPS(NY)7.59
Fwd EY10.13%
FCF(TTM)13.87
FCFY18.49%
OCF(TTM)15.08
OCFY20.12%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.32
PEG (5Y)0.32
Graham Number94.99
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
WACC6.28%
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)12.7%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%5.88%
EPS Next Y7.93%
EPS Next 2Y7.68%
EPS Next 3Y8.23%
EPS Next 5Y3.52%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
Revenue Next Year2.56%
Revenue Next 2Y2.31%
Revenue Next 3Y2.62%
Revenue Next 5Y2.23%
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 7.93% 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%.