HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
USA - NYSE:HDB - US40415F1012 - ADR
34.25 USD
+0.16 (+0.47%)
35.1 USD
+0.85 (+2.48%)
Taking everything into account, HDB scores 3 out of 10 in our fundamental rating. HDB was compared to 392 industry peers in the Banks industry. There are concerns on the financial health of HDB while its profitability can be described as average. HDB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HDB was profitable.
HDB had a positive operating cash flow in the past year.
HDB had positive earnings in each of the past 5 years.
HDB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.61%, HDB belongs to the top of the industry, outperforming 91.58% of the companies in the same industry.
HDB has a better Return On Equity (13.57%) than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 13.57% | ||
| ROIC | N/A |
ROA(3y)1.67%
ROA(5y)1.72%
ROE(3y)14.5%
ROE(5y)14.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HDB has a Profit Margin of 24.66%. This is comparable to the rest of the industry: HDB outperforms 55.61% of its industry peers.
HDB's Profit Margin has declined in the last couple of years.
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) | 24.66% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.91%
PM growth 5Y-5.13%
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.
The number of shares outstanding for HDB has been increased compared to 1 year ago.
HDB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HDB has an improved debt to assets ratio.
2.2 Solvency
HDB has a debt to FCF ratio of 5.26. This is a neutral value as HDB would need 5.26 years to pay back of all of its debts.
HDB has a Debt to FCF ratio of 5.26. This is in the lower half of the industry: HDB underperforms 69.39% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that HDB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.24, HDB is doing worse than 86.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.2%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HDB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.63%.
Measured over the past years, HDB shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.58% on average per year.
Looking at the last year, HDB shows a small growth in Revenue. The Revenue has grown by 3.00% in the last year.
The Revenue has been growing by 27.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-39.63%
EPS 3Y-12.81%
EPS 5Y-1.58%
EPS Q2Q%11.28%
Revenue 1Y (TTM)3%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%31.26%
3.2 Future
HDB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.21% yearly.
HDB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.40% yearly.
EPS Next Y12.01%
EPS Next 2Y14.18%
EPS Next 3Y44.99%
EPS Next 5Y35.21%
Revenue Next Year13.28%
Revenue Next 2Y12.36%
Revenue Next 3Y13.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.39, HDB is valued on the expensive side.
Based on the Price/Earnings ratio, HDB is valued more expensive than 82.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of HDB to the average of the S&P500 Index (27.86), we can say HDB is valued inline with the index average.
The Price/Forward Earnings ratio is 17.65, which indicates a rather expensive current valuation of HDB.
Based on the Price/Forward Earnings ratio, HDB is valued a bit more expensive than the industry average as 77.55% of the companies are valued more cheaply.
HDB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HDB's earnings are expected to grow with 44.99% in the coming years.
PEG (NY)1.86
PEG (5Y)N/A
EPS Next 2Y14.18%
EPS Next 3Y44.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, HDB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.59, HDB's dividend is way lower than its industry peers. On top of this 81.38% of the companies listed in the same industry pay a better dividend than HDB!
Compared to an average S&P500 Dividend Yield of 2.44, HDB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of HDB has a limited annual growth rate of 1.31%.
HDB has been paying a dividend for at least 10 years, so it has a reliable track record.
HDB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.31%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HDB pays out 20.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of HDB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.94%
EPS Next 2Y14.18%
EPS Next 3Y44.99%
34.25
+0.16 (+0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.96%
Inst Owner Change0.01%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap175.36B
Analysts86.96
Price Target37.07 (8.23%)
Short Float %N/A
Short Ratio7.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.44
Dividend Growth(5Y)1.31%
DP20.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.55%
Min EPS beat(2)-3.55%
Max EPS beat(2)-1.55%
EPS beat(4)0
Avg EPS beat(4)-1.77%
Min EPS beat(4)-3.55%
Max EPS beat(4)-0.01%
EPS beat(8)2
Avg EPS beat(8)-4.24%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)-0.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)5
Avg Revenue beat(12)1.51%
Revenue beat(16)8
Avg Revenue beat(16)2.4%
PT rev (1m)-53.6%
PT rev (3m)-52.85%
EPS NQ rev (1m)-49.56%
EPS NQ rev (3m)-49.56%
EPS NY rev (1m)-75.02%
EPS NY rev (3m)-50.69%
Revenue NQ rev (1m)4.15%
Revenue NQ rev (3m)4.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 17.65 | ||
| P/S | 5.42 | ||
| P/FCF | 12.64 | ||
| P/OCF | 12.24 | ||
| P/B | 2.98 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.53
EY4.47%
EPS(NY)1.94
Fwd EY5.67%
FCF(TTM)2.71
FCFY7.91%
OCF(TTM)2.8
OCFY8.17%
SpS6.31
BVpS11.48
TBVpS11.48
PEG (NY)1.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 13.57% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.66% | ||
| GM | N/A | ||
| FCFM | 42.91% |
ROA(3y)1.67%
ROA(5y)1.72%
ROE(3y)14.5%
ROE(5y)14.81%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.91%
PM growth 5Y-5.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 107.11% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 173.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC4.2%
ROIC/WACCN/A
Cap/Depr(3y)131.18%
Cap/Depr(5y)129.81%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.93%
Profit Quality(3y)84.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.63%
EPS 3Y-12.81%
EPS 5Y-1.58%
EPS Q2Q%11.28%
EPS Next Y12.01%
EPS Next 2Y14.18%
EPS Next 3Y44.99%
EPS Next 5Y35.21%
Revenue 1Y (TTM)3%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%31.26%
Revenue Next Year13.28%
Revenue Next 2Y12.36%
Revenue Next 3Y13.4%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y374.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y320.62%
OCF growth 3YN/A
OCF growth 5YN/A