HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
80.26 USD
-1.82 (-2.22%)
80.44 USD
+0.18 (+0.22%)
Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. 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. 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.
HSBC had positive earnings in each of the past 5 years.
HSBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.96%, HSBC perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
HSBC has a better Return On Equity (16.05%) than 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
Looking at the Profit Margin, with a value of 24.34%, HSBC is in line with its industry, outperforming 49.61% of the companies in the same industry.
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) | 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.
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.
2.2 Solvency
The Debt to FCF ratio of HSBC is 7.73, which is on the high side as it means it would take HSBC, 7.73 years of fcf income to pay off all of its debts.
HSBC's Debt to FCF ratio of 7.73 is on the low side compared to the rest of the industry. HSBC is outperformed by 76.23% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, HSBC is not doing good in the industry: 88.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.47%
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 grown by an nice 12.70% over the past year.
The Earnings Per Share has been growing by 13.51% on average over the past years. This is quite good.
The Revenue has decreased by -1.62% in the past 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)12.7%
EPS 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
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 3.52% on average per year.
Based on estimates for the next years, HSBC will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HSBC is valuated reasonably with a Price/Earnings ratio of 11.23.
Compared to the rest of the industry, the Price/Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 65.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (26.92), we can say HSBC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.33 indicates a reasonable valuation of HSBC.
HSBC's Price/Forward Earnings is on the same level as the industry average.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HSBC is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.79 | ||
| 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)1.14
PEG (5Y)0.83
EPS Next 2Y8.92%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, HSBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.78, HSBC pays a better dividend. On top of this HSBC pays more dividend than 84.50% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of HSBC is nicely growing with an annual growth rate of 13.67%!
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.
HSBC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
80.26
-1.82 (-2.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners45.11%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap275.55B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target76.44 (-4.76%)
Short Float %0.18%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)13
Avg EPS beat(16)10.07%
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)13
Avg Revenue beat(16)34.2%
PT rev (1m)6.29%
PT rev (3m)10.17%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)1.8%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 10.33 | ||
| P/S | 2.17 | ||
| P/FCF | 5.79 | ||
| P/OCF | 5.32 | ||
| P/B | 1.43 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY8.91%
EPS(NY)7.77
Fwd EY9.68%
FCF(TTM)13.87
FCFY17.28%
OCF(TTM)15.08
OCFY18.79%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.14
PEG (5Y)0.83
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
WACC6.47%
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 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
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.
Can you provide the valuation status for HSBC HOLDINGS PLC-SPONS ADR?
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 financial health for HSBC stock?
The financial health rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 1 / 10.
Can you provide the dividend sustainability for HSBC stock?
The dividend rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 7 / 10 and the dividend payout ratio is 43.96%.