HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
NYSE:HDB - New York Stock Exchange, Inc. - US40415F1012 - ADR - Currency: USD
Taking everything into account, HDB scores 3 out of 10 in our fundamental rating. HDB was compared to 395 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
In the past year HDB was profitable.
HDB had a positive operating cash flow in the past year.
In the past 5 years HDB has always 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 92.66% of its industry peers.
With an excellent Return On Equity value of 13.57%, HDB belongs to the best of the industry, outperforming 89.11% of the companies in the same industry.
| 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
The Profit Margin of HDB (24.66%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HDB has declined.
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.
Compared to 1 year ago, HDB has more shares outstanding
HDB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HDB has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HDB is 5.15, which is a neutral value as it means it would take HDB, 5.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HDB (5.15) is worse than 71.90% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that HDB has dependencies on debt financing.
HDB has a worse Debt to Equity ratio (1.22) than 87.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.4%
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 2.86% 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 quite strong growth in Revenue. The Revenue has grown by 13.06% 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)2.86%
EPS 3Y9.86%
EPS 5Y13.05%
EPS Q2Q%5.81%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%-6.67%
3.2 Future
Based on estimates for the next years, HDB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.54% 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 13.29% on average per year.
EPS Next Y13.64%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.86%
Revenue Next 2Y12.77%
Revenue Next 3Y13.29%
Revenue Next 5YN/A
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 stable.
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 24.83, HDB is valued on the expensive side.
Based on the Price/Earnings ratio, HDB is valued more expensive than 84.30% of the companies in the same industry.
HDB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 21.84 indicates a rather expensive valuation of HDB.
79.75% of the companies in the same industry are cheaper than HDB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, HDB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 21.84 |
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 | 13.61 | ||
| 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.
A more expensive valuation may be justified as HDB's earnings are expected to grow with 14.54% in the coming years.
PEG (NY)1.82
PEG (5Y)1.9
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.00%.
Compared to an average industry Dividend Yield of 3.47, HDB's dividend is way lower than its industry peers. On top of this 82.03% of the companies listed in the same industry pay a better dividend than HDB!
With a Dividend Yield of 1.00, HDB pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of HDB is nicely growing with an annual growth rate of 9.89%!
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)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
76.71
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.37%
Inst Owner Change9.36%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap195.89B
Analysts86.81
Price Target78.62 (2.49%)
Short Float %0.58%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.68
Dividend Growth(5Y)9.89%
DP20.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)1.25%
PT rev (3m)19.38%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)2.09%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 21.84 | ||
| P/S | 5.84 | ||
| P/FCF | 13.61 | ||
| P/OCF | 13.17 | ||
| P/B | 3.21 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.09
EY4.03%
EPS(NY)3.51
Fwd EY4.58%
FCF(TTM)5.64
FCFY7.35%
OCF(TTM)5.82
OCFY7.59%
SpS13.14
BVpS23.88
TBVpS23.88
PEG (NY)1.82
PEG (5Y)1.9
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 | 1.22 | ||
| Debt/FCF | 5.15 | ||
| 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
WACC4.4%
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)2.86%
EPS 3Y9.86%
EPS 5Y13.05%
EPS Q2Q%5.81%
EPS Next Y13.64%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%-6.67%
Revenue Next Year10.86%
Revenue Next 2Y12.77%
Revenue Next 3Y13.29%
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