HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
82.19 USD
+0.91 (+1.12%)
Overall HSBC gets a fundamental rating of 4 out of 10. We evaluated HSBC against 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 decent growth rate and is not valued too expensively. Finally HSBC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HSBC had positive earnings in the past year.
In the past year HSBC had a positive cash flow from operations.
In the past 5 years HSBC has always 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 (0.96%) which is in line with 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
HSBC has a Profit Margin of 24.34%. This is comparable to the rest of the industry: HSBC outperforms 49.61% 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 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.
Compared to 1 year ago, HSBC has less shares outstanding
Compared to 5 years ago, HSBC has less shares outstanding
Compared to 1 year ago, HSBC has a worse debt to assets ratio.
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: 76.23% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC has a worse Debt to Equity ratio (1.91) than 88.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.46%
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.
The Earnings Per Share has been growing by 13.51% on average over the past years. This is quite good.
Looking at the last year, HSBC shows a decrease in Revenue. The Revenue has decreased by -1.62% in the last year.
The Revenue has been growing slightly by 1.30% on average over the past years.
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
The Price/Earnings ratio is 11.50, which indicates a very decent valuation of HSBC.
HSBC's Price/Earnings ratio is a bit cheaper when compared to the industry. HSBC is cheaper than 65.63% of the companies in the same industry.
HSBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.87.
A Price/Forward Earnings ratio of 10.58 indicates a reasonable valuation of HSBC.
HSBC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, HSBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSBC indicates a rather cheap valuation: HSBC is cheaper than 90.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.16
PEG (5Y)0.85
EPS Next 2Y8.92%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
HSBC has a Yearly Dividend Yield of 4.22%, which is a nice return.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 2.78. HSBC pays more dividend than 84.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, HSBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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.
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 2Y8.92%
EPS Next 3Y8.98%
NYSE:HSBC (1/6/2026, 2:59:04 PM)
82.19
+0.91 (+1.12%)
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 Cap282.17B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target76.44 (-7%)
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 | 11.5 | ||
| Fwd PE | 10.58 | ||
| P/S | 2.22 | ||
| P/FCF | 5.93 | ||
| P/OCF | 5.45 | ||
| P/B | 1.47 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY8.7%
EPS(NY)7.77
Fwd EY9.45%
FCF(TTM)13.87
FCFY16.87%
OCF(TTM)15.08
OCFY18.35%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.16
PEG (5Y)0.85
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
WACC6.46%
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%.