HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
NYSE:HDB - New York Stock Exchange, Inc. - US40415F1012 - ADR - Currency: USD
Overall HDB gets a fundamental rating of 3 out of 10. We evaluated HDB against 393 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
HDB had positive earnings in the past year.
In the past year HDB had a positive cash flow from operations.
Each year in the past 5 years HDB has been profitable.
Of the past 5 years HDB 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.61%, HDB belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
HDB has a better Return On Equity (13.57%) than 89.57% 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 (24.66%) which is in line with its industry peers.
HDB's Profit Margin has declined in the last couple of years.
HDB 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) | 24.66% | ||
| 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.
HDB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HDB has been increased compared to 5 years ago.
HDB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HDB is 5.26, which is a neutral value as it means it would take HDB, 5.26 years of fcf income to pay off all of its debts.
HDB's Debt to FCF ratio of 5.26 is on the low side compared to the rest of the industry. HDB is outperformed by 69.47% of its industry peers.
HDB has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HDB's Debt to Equity ratio of 1.24 is on the low side compared to the rest of the industry. HDB is outperformed by 86.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.38%
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 been growing slightly by 5.76% over the past year.
Measured over the past years, HDB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.05% 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.
Measured over the past years, HDB shows a very strong growth in Revenue. The Revenue has been growing by 27.58% on average per year.
EPS 1Y (TTM)5.76%
EPS 3Y9.86%
EPS 5Y13.05%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.54% yearly.
The Revenue is expected to grow by 13.26% on average over the next years. This is quite good.
EPS Next Y13.64%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.81%
Revenue Next 2Y12.33%
Revenue Next 3Y13.26%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.99, the valuation of HDB can be described as rather expensive.
HDB's Price/Earnings ratio is rather expensive when compared to the industry. HDB is more expensive than 82.95% of the companies in the same industry.
HDB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.85.
With a Price/Forward Earnings ratio of 18.78, HDB is valued on the expensive side.
78.37% of the companies in the same industry are cheaper than HDB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HDB to the average of the S&P500 Index (34.98), we can say HDB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
HDB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| 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.
HDB's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)1.84
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 3.41, HDB's dividend is way lower than its industry peers. On top of this 80.92% of the companies listed in the same industry pay a better dividend than HDB!
Compared to an average S&P500 Dividend Yield of 2.36, HDB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of HDB grows each year by 9.89%, which is quite nice.
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)9.89%
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.
HDB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.94%
EPS Next 2Y14.54%
EPS Next 3YN/A
74.86
-0.59 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.37%
Inst Owner Change-8.46%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap191.47B
Analysts87.92
Price Target81.23 (8.51%)
Short Float %0.47%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.67
Dividend Growth(5Y)9.89%
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)3.32%
PT rev (3m)4.61%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)4.15%
Revenue NQ rev (3m)5.29%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 18.78 | ||
| P/S | 5.81 | ||
| P/FCF | 13.54 | ||
| P/OCF | 13.1 | ||
| P/B | 3.2 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.12
EY4.17%
EPS(NY)3.99
Fwd EY5.32%
FCF(TTM)5.53
FCFY7.39%
OCF(TTM)5.71
OCFY7.63%
SpS12.89
BVpS23.43
TBVpS23.43
PEG (NY)1.76
PEG (5Y)1.84
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
WACC4.38%
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)5.76%
EPS 3Y9.86%
EPS 5Y13.05%
EPS Q2Q%11.28%
EPS Next Y13.64%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%31.26%
Revenue Next Year11.81%
Revenue Next 2Y12.33%
Revenue Next 3Y13.26%
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