HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
USA - NYSE:HDB - US40415F1012 - ADR
36.22 USD
-0.66 (-1.79%)
36.22 USD
0 (0%)
Overall HDB gets a fundamental rating of 3 out of 10. We evaluated HDB against 390 industry peers in the Banks industry. HDB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
HDB had a positive operating cash flow in the past year.
Each year in the past 5 years HDB has been profitable.
HDB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HDB (1.61%) is better than 91.54% of its industry peers.
HDB has a better Return On Equity (13.57%) than 90.00% 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's Profit Margin of 24.66% is in line compared to the rest of the industry. HDB outperforms 55.90% of its industry peers.
In the last couple of years the Profit Margin of HDB has declined.
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.
The number of shares outstanding for HDB has been increased compared to 1 year ago.
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 5.26. This is a neutral value as HDB would need 5.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.26, HDB is doing worse than 69.23% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that HDB has dependencies on debt 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 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HDB have decreased strongly by -39.63% in the last year.
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.
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)-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
Based on estimates for the next years, HDB will show a very strong growth in Earnings Per Share. The EPS will grow by 35.22% on average per year.
Based on estimates for the next years, HDB will show a quite strong growth in Revenue. The Revenue will grow by 13.40% on average per year.
EPS Next Y12.01%
EPS Next 2Y14.18%
EPS Next 3Y45%
EPS Next 5Y35.22%
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
A Price/Earnings ratio of 23.67 indicates a rather expensive valuation of HDB.
Based on the Price/Earnings ratio, HDB is valued more expensive than 83.33% of the companies in the same industry.
HDB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.65, the valuation of HDB can be described as rather expensive.
HDB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HDB is more expensive than 77.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. HDB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
HDB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| 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 45.00% in the coming years.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y14.18%
EPS Next 3Y45%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, HDB's dividend is way lower than its industry peers. On top of this 80.51% of the companies listed in the same industry pay a better dividend than HDB!
With a Dividend Yield of 1.11, HDB pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of HDB has a limited annual growth rate of 1.31%.
HDB has paid a dividend for at least 10 years, which is 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
20.94% of the earnings are spent on dividend by HDB. This is a low number and sustainable payout ratio.
HDB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.94%
EPS Next 2Y14.18%
EPS Next 3Y45%
36.22
-0.66 (-1.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.96%
Inst Owner Change6.79%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap185.49B
Revenue(TTM)2999.51B
Net Income(TTM)707.92B
Analysts86.96
Price Target37.07 (2.35%)
Short Float %0.29%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)-2.67%
PT rev (3m)-53.14%
EPS NQ rev (1m)-49.57%
EPS NQ rev (3m)-49.57%
EPS NY rev (1m)-50.06%
EPS NY rev (3m)-50.81%
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 | 23.67 | ||
| Fwd PE | 18.65 | ||
| P/S | 5.73 | ||
| P/FCF | 13.36 | ||
| P/OCF | 12.93 | ||
| P/B | 3.15 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.53
EY4.22%
EPS(NY)1.94
Fwd EY5.36%
FCF(TTM)2.71
FCFY7.48%
OCF(TTM)2.8
OCFY7.73%
SpS6.32
BVpS11.48
TBVpS11.48
PEG (NY)1.97
PEG (5Y)N/A
Graham Number19.88
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
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 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
WACC4.37%
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 3Y45%
EPS Next 5Y35.22%
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
HDFC BANK LTD-ADR / HDB FAQ
What is the fundamental rating for HDB stock?
ChartMill assigns a fundamental rating of 3 / 10 to HDB.
What is the valuation status of HDFC BANK LTD-ADR (HDB) stock?
ChartMill assigns a valuation rating of 2 / 10 to HDFC BANK LTD-ADR (HDB). This can be considered as Overvalued.
How profitable is HDFC BANK LTD-ADR (HDB) stock?
HDFC BANK LTD-ADR (HDB) has a profitability rating of 4 / 10.
What is the earnings growth outlook for HDFC BANK LTD-ADR?
The Earnings per Share (EPS) of HDFC BANK LTD-ADR (HDB) is expected to grow by 12.01% in the next year.
Is the dividend of HDFC BANK LTD-ADR sustainable?
The dividend rating of HDFC BANK LTD-ADR (HDB) is 5 / 10 and the dividend payout ratio is 20.94%.