HSBC HOLDINGS PLC (HBC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HBC1 - GB0005405286 - Common Stock
14.54 EUR
-0.14 (-0.95%)
HBC1 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 114 industry peers in the Banks industry. HBC1 has a medium profitability rating, but doesn't score so well on its financial health evaluation. HBC1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HBC1 was profitable.
- HBC1 had a positive operating cash flow in the past year.
- HBC1 had positive earnings in each of the past 5 years.
- HBC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HBC1 has a Return On Assets of 0.96%. This is in the better half of the industry: HBC1 outperforms 61.40% of its industry peers.
- Looking at the Return On Equity, with a value of 16.05%, HBC1 belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
| 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%, HBC1 perfoms like the industry average, outperforming 54.39% of the companies in the same industry.
- In the last couple of years the Profit Margin of HBC1 has grown nicely.
- The Operating Margin and Gross Margin are not available for HBC1 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
- HBC1 does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, HBC1 has less shares outstanding
- Compared to 5 years ago, HBC1 has less shares outstanding
- Compared to 1 year ago, HBC1 has a worse debt to assets ratio.
2.2 Solvency
- HBC1 has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as HBC1 would need 7.73 years to pay back of all of its debts.
- HBC1 has a Debt to FCF ratio of 7.73. This is amongst the best in the industry. HBC1 outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 1.91 is on the high side and indicates that HBC1 has dependencies on debt financing.
- HBC1 has a Debt to Equity ratio (1.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.15%
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.
- Measured over the past years, HBC1 shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
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
- HBC1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.52% yearly.
- HBC1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y10.49%
EPS Next 2Y8.9%
EPS Next 3Y8.96%
EPS Next 5Y3.52%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- HBC1 is valuated correctly with a Price/Earnings ratio of 12.22.
- HBC1's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of HBC1 to the average of the S&P500 Index (28.60), we can say HBC1 is valued rather cheaply.
- HBC1 is valuated reasonably with a Price/Forward Earnings ratio of 11.29.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HBC1 is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of HBC1 to the average of the S&P500 Index (25.83), we can say HBC1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, HBC1 is valued cheaper than 98.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.26 | ||
| 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)0.9
EPS Next 2Y8.9%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
- HBC1 has a Yearly Dividend Yield of 3.98%.
- HBC1's Dividend Yield is comparable with the industry average which is at 3.93.
- HBC1's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
- The dividend of HBC1 is nicely growing with an annual growth rate of 13.67%!
Dividend Growth(5Y)13.67%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 43.96% of the earnings are spent on dividend by HBC1. This is a bit on the high side, but may be sustainable.
- The dividend of HBC1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y8.9%
EPS Next 3Y8.96%
HSBC HOLDINGS PLC / HBC1.DE FAQ
Can you provide the ChartMill fundamental rating for HSBC HOLDINGS PLC?
ChartMill assigns a fundamental rating of 4 / 10 to HBC1.DE.
What is the valuation status for HBC1 stock?
ChartMill assigns a valuation rating of 5 / 10 to HSBC HOLDINGS PLC (HBC1.DE). This can be considered as Fairly Valued.
How profitable is HSBC HOLDINGS PLC (HBC1.DE) stock?
HSBC HOLDINGS PLC (HBC1.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for HBC1 stock?
The financial health rating of HSBC HOLDINGS PLC (HBC1.DE) is 3 / 10.
Is the dividend of HSBC HOLDINGS PLC sustainable?
The dividend rating of HSBC HOLDINGS PLC (HBC1.DE) is 5 / 10 and the dividend payout ratio is 43.96%.