HDFC BANK LTD-ADR (HDB)
US40415F1012 - ADR
Overall HDB gets a fundamental rating of 3 out of 10. We evaluated HDB against 412 industry peers in the Banks industry. While HDB is still in line with the averages on profitability rating, there are concerns on its financial health. HDB shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
HDB had positive earnings in the past year.
In the past year HDB had a positive cash flow from operations.
HDB had positive earnings in each of the past 5 years.
In multiple years HDB reported negative operating cash flow during the last 5 years.
1.2 Ratios
HDB's Return On Assets of 1.44% is amongst the best of the industry. HDB outperforms 87.14% of its industry peers.
HDB's Return On Equity of 13.00% is amongst the best of the industry. HDB outperforms 82.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 13% | ||
| ROIC | N/A |
ROA(3y)1.79%
ROA(5y)1.77%
ROE(3y)15.48%
ROE(5y)15.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 32.13%, HDB belongs to the top of the industry, outperforming 83.25% of the companies in the same industry.
In the last couple of years the Profit Margin of HDB has grown nicely.
The Operating Margin and Gross Margin are not available for HDB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 32.13% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.15%
PM growth 5Y2.92%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HDB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, HDB has more shares outstanding
The number of shares outstanding for HDB has been increased compared to 5 years ago.
The debt/assets ratio for HDB has been reduced compared to a year ago.
2.2 Solvency
HDB has a debt to FCF ratio of 15.45. This is a negative value and a sign of low solvency as HDB would need 15.45 years to pay back of all of its debts.
The Debt to FCF ratio of HDB (15.45) is worse than 82.28% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that HDB has dependencies on debt financing.
HDB has a worse Debt to Equity ratio (1.84) than 91.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 15.45 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HDB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.32%, which is quite good.
HDB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.39% yearly.
Looking at the last year, HDB shows a very strong growth in Revenue. The Revenue has grown by 46.05%.
The Revenue has been growing by 16.56% on average over the past years. This is quite good.
EPS 1Y (TTM)19.32%
EPS 3Y18.48%
EPS 5Y18.39%
EPS growth Q2Q10.99%
Revenue 1Y (TTM)46.05%
Revenue growth 3Y14.32%
Revenue growth 5Y16.56%
Revenue growth Q2Q114.82%
3.2 Future
HDB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.56% yearly.
HDB is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.81% yearly.
EPS Next Y3.81%
EPS Next 2Y9.33%
EPS Next 3Y11.56%
EPS Next 5YN/A
Revenue Next Year29.67%
Revenue Next 2Y24.78%
Revenue Next 3Y21.81%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
HDB is valuated rather expensively with a Price/Earnings ratio of 18.63.
Based on the Price/Earnings ratio, HDB is valued more expensive than 85.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of HDB to the average of the S&P500 Index (24.80), we can say HDB is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.30, which indicates a correct valuation of HDB.
HDB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HDB is more expensive than 74.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, HDB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
HDB's Price/Free Cash Flow ratio is rather expensive when compared to the industry. HDB is more expensive than 80.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HDB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.89
PEG (5Y)1.01
EPS Next 2Y9.33%
EPS Next 3Y11.56%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 3.91, HDB's dividend is way lower than its industry peers. On top of this 83.01% of the companies listed in the same industry pay a better dividend than HDB!
Compared to an average S&P500 Dividend Yield of 2.40, HDB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
The dividend of HDB is nicely growing with an annual growth rate of 23.02%!
HDB has been paying a dividend for at least 10 years, so it has a reliable track record.
HDB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.02%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
15.43% of the earnings are spent on dividend by HDB. This is a low number and sustainable payout ratio.
HDB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.43%
EPS Next 2Y9.33%
EPS Next 3Y11.56%
HDFC BANK LTD-ADR
NYSE:HDB (4/18/2024, 6:00:21 PM)
After market: 57.38 0 (0%)57.38
+0.56 (+0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap145.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 18.63 | ||
| Fwd PE | 16.3 | ||
| 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)4.89
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 32.13% | ||
| 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 | 1.84 | ||
| 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)
Growth
EPS 1Y (TTM)19.32%
EPS 3Y18.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)46.05%
Revenue growth 3Y14.32%
Revenue growth 5Y
Revenue growth 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