HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
78.67 USD
-0.61 (-0.77%)
78.99 USD
+0.32 (+0.41%)
Overall HSBC gets a fundamental rating of 4 out of 10. We evaluated HSBC against 388 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.
HSBC had a positive operating cash flow in the past year.
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
HSBC has a Return On Assets of 0.96%. This is comparable to the rest of the industry: HSBC outperforms 55.67% of its industry peers.
HSBC has a Return On Equity of 16.05%. This is amongst the best in the industry. HSBC outperforms 95.10% 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 (24.34%) which is comparable to the rest of the 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.
HSBC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HSBC has been reduced compared to 5 years ago.
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 76.29% 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.
HSBC has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: HSBC underperforms 88.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.45%
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.
HSBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.51% yearly.
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
The Earnings Per Share is expected to grow by 3.52% on average over the next years.
HSBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
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.
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
The Price/Earnings ratio is 11.00, which indicates a very decent valuation of HSBC.
Compared to the rest of the industry, the Price/Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 66.75% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (26.51), we can say HSBC is valued rather cheaply.
HSBC is valuated reasonably with a Price/Forward Earnings ratio of 10.12.
HSBC's Price/Forward Earnings ratio is in line with the industry average.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.12 |
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 90.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.67 | ||
| 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)1.11
PEG (5Y)0.81
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.
Compared to an average industry Dividend Yield of 2.74, HSBC pays a better dividend. On top of this HSBC pays more dividend than 85.05% 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 2.00.
| 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 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%
78.67
-0.61 (-0.77%)
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 Cap270.09B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target76.44 (-2.83%)
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)9.47%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)2.64%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.12 | ||
| P/S | 2.13 | ||
| P/FCF | 5.67 | ||
| P/OCF | 5.22 | ||
| P/B | 1.4 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY9.09%
EPS(NY)7.77
Fwd EY9.88%
FCF(TTM)13.87
FCFY17.63%
OCF(TTM)15.08
OCFY19.17%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.11
PEG (5Y)0.81
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
WACC6.45%
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%.