HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis
USA - NYSE:HDB - US40415F1012 - ADR
35.07 USD
-0.32 (-0.9%)
35.07 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HDB. HDB was compared to 391 industry peers in the Banks industry. There are concerns on the financial health of HDB while its profitability can be described as average. HDB may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 91.56% of the companies in the same industry.
HDB's Return On Equity of 13.57% is amongst the best of the industry. HDB outperforms 89.26% 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 comparable to the rest of the industry.
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 68.54% of the companies in the same industry.
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 85.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.21%
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 -21.48% in the last year.
Measured over the past years, HDB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.94% 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)-21.48%
EPS 3Y4.86%
EPS 5Y9.94%
EPS Q2Q%-44.36%
Revenue 1Y (TTM)3%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%31.26%
3.2 Future
The Earnings Per Share is expected to decrease by -1.01% on average over the next years.
HDB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.42% yearly.
EPS Next Y28.82%
EPS Next 2Y22.55%
EPS Next 3Y-4.55%
EPS Next 5Y-1.01%
Revenue Next Year13.27%
Revenue Next 2Y12.49%
Revenue Next 3Y13.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
HDB is valuated cheaply with a Price/Earnings ratio of 7.69.
HDB's Price/Earnings ratio is rather cheap when compared to the industry. HDB is cheaper than 94.37% of the companies in the same industry.
HDB is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.49, the valuation of HDB can be described as very cheap.
HDB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HDB is cheaper than 97.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, HDB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 4.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HDB is valued cheaply inside the industry as 88.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HDB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HDB's earnings are expected to decrease with -4.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.27
PEG (5Y)0.77
EPS Next 2Y22.55%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.14, HDB pays less dividend than the industry average, which is at 3.56. 83.63% of the companies listed in the same industry pay a better dividend than HDB!
Compared to an average S&P500 Dividend Yield of 2.45, HDB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of HDB grows each year by 9.89%, which is quite nice.
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.
DP20.94%
EPS Next 2Y22.55%
EPS Next 3Y-4.55%
35.07
-0.32 (-0.9%)
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 Cap89.70B
Analysts86.96
Price Target38.09 (8.61%)
Short Float %0.34%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.33
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)1%
PT rev (3m)0.7%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)97.13%
EPS NY rev (3m)97.24%
Revenue NQ rev (1m)4.15%
Revenue NQ rev (3m)5.29%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 4.49 | ||
| P/S | 2.76 | ||
| P/FCF | 6.44 | ||
| P/OCF | 6.23 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.56
EY13%
EPS(NY)7.81
Fwd EY22.28%
FCF(TTM)5.45
FCFY15.53%
OCF(TTM)5.63
OCFY16.04%
SpS12.69
BVpS23.07
TBVpS23.07
PEG (NY)0.27
PEG (5Y)0.77
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
WACC4.21%
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)-21.48%
EPS 3Y4.86%
EPS 5Y9.94%
EPS Q2Q%-44.36%
EPS Next Y28.82%
EPS Next 2Y22.55%
EPS Next 3Y-4.55%
EPS Next 5Y-1.01%
Revenue 1Y (TTM)3%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%31.26%
Revenue Next Year13.27%
Revenue Next 2Y12.49%
Revenue Next 3Y13.42%
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