HSBC HOLDINGS PLC-SPONS ADR (HSBC)
US4042804066 - ADR
Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. HSBC was compared to 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.
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.
1.2 Ratios
HSBC's Return On Assets of 1.27% is amongst the best of the industry. HSBC outperforms 83.87% of its industry peers.
HSBC has a better Return On Equity (20.65%) than 98.26% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
HSBC has a better Profit Margin (30.72%) than 84.86% of its industry peers.
HSBC's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for HSBC so they could not be analyzed.
| Industry Rank | Sector 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
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.
Compared to 1 year ago, HSBC has a worse debt to assets ratio.
2.2 Solvency
HSBC has a debt to FCF ratio of 11.57. This is a negative value and a sign of low solvency as HSBC would need 11.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.57, HSBC is doing worse than 72.70% of the companies in the same industry.
HSBC has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, HSBC is doing worse than 91.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 11.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.91%
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 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
HSBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.53% yearly.
HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.14% yearly.
EPS Next Y7.6%
EPS Next 2Y1.87%
EPS Next 3Y2.46%
EPS Next 5Y0.53%
Revenue Next Year-0.47%
Revenue Next 2Y-1.3%
Revenue Next 3Y-0.49%
Revenue Next 5Y1.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.14, which indicates a rather cheap valuation of HSBC.
HSBC's Price/Earnings ratio is rather cheap when compared to the industry. HSBC is cheaper than 94.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.56, HSBC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.17 indicates a rather cheap valuation of HSBC.
HSBC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HSBC is cheaper than 93.05% of the companies in the same industry.
HSBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
HSBC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HSBC is cheaper than 91.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.94
PEG (5Y)0.56
EPS Next 2Y1.87%
EPS Next 3Y2.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.65%, HSBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.02, HSBC pays a better dividend. On top of this HSBC pays more dividend than 97.27% 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 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
5.2 History
The dividend of HSBC has a limited annual growth rate of 2.95%.
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)2.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.89% of the earnings are spent on dividend by HSBC. This is a bit on the high side, but may be sustainable.
HSBC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.89%
EPS Next 2Y1.87%
EPS Next 3Y2.46%
HSBC HOLDINGS PLC-SPONS ADR
NYSE:HSBC (11/25/2024, 5:05:00 PM)
After market: 46.49 0 (0%)46.49
+0.55 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap169.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 7.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 20.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 30.72% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.61%
EPS 3Y81.95%
EPS 5Y
EPS Q2Q%
EPS Next Y7.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.75%
Revenue growth 3Y6.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y