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 396 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 is valued quite expensively, but it does show have an excellent growth rating.
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.
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 92.42% of the companies in the same industry.
HDB's Return On Equity of 13.57% is amongst the best of the industry. HDB outperforms 88.38% 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
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.
The number of shares outstanding for HDB has been increased compared to 1 year ago.
Compared to 5 years ago, HDB has more shares outstanding
Compared to 1 year ago, HDB has an improved debt to assets ratio.
2.2 Solvency
HDB has a debt to FCF ratio of 5.15. This is a neutral value as HDB would need 5.15 years to pay back of all of its debts.
HDB's Debt to FCF ratio of 5.15 is on the low side compared to the rest of the industry. HDB is outperformed by 71.46% of its industry peers.
HDB has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.22, HDB is not doing good in the industry: 87.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.07%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HDB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.74%.
HDB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.31% yearly.
HDB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.06%.
The Revenue has been growing by 27.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.74%
EPS 3Y10.59%
EPS 5Y13.31%
EPS Q2Q%5.96%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%55.12%
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 13.03% on average per year.
The Revenue is expected to grow by 13.29% on average over the next years. This is quite good.
EPS Next Y10.67%
EPS Next 2Y13.03%
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
The EPS growth rate is stable: in the next years the growth will be about the same 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 22.83, HDB is valued on the expensive side.
Based on the Price/Earnings ratio, HDB is valued expensively inside the industry as 83.59% of the companies are valued cheaper.
HDB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 21.15, which indicates a rather expensive current valuation of HDB.
79.04% 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 (21.76), we can say HDB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 21.15 |
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 | 13.18 | ||
| 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 13.03% in the coming years.
PEG (NY)2.14
PEG (5Y)1.72
EPS Next 2Y13.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HDB has a Yearly Dividend Yield of 1.14%.
Compared to an average industry Dividend Yield of 3.34, HDB's dividend is way lower than its industry peers. On top of this 80.81% 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 | 1.14% |
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
20.94% of the earnings are spent on dividend by HDB. This is a low number and sustainable payout ratio.
The dividend of HDB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.94%
EPS Next 2Y13.03%
EPS Next 3YN/A
73.98
+1.26 (+1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.57%
Inst Owner Change8.09%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap188.79B
Analysts86.67
Price Target77.65 (4.96%)
Short Float %0.55%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)31.81%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)63.8%
Revenue beat(4)1
Avg Revenue beat(4)13.89%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)63.8%
Revenue beat(8)2
Avg Revenue beat(8)6.58%
Revenue beat(12)6
Avg Revenue beat(12)6.96%
Revenue beat(16)9
Avg Revenue beat(16)6.49%
PT rev (1m)11.25%
PT rev (3m)21.12%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 21.15 | ||
| P/S | 5.65 | ||
| P/FCF | 13.18 | ||
| P/OCF | 12.76 | ||
| P/B | 3.11 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.24
EY4.38%
EPS(NY)3.5
Fwd EY4.73%
FCF(TTM)5.61
FCFY7.59%
OCF(TTM)5.8
OCFY7.84%
SpS13.08
BVpS23.78
TBVpS23.78
PEG (NY)2.14
PEG (5Y)1.72
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
WACC8.07%
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)2.74%
EPS 3Y10.59%
EPS 5Y13.31%
EPS Q2Q%5.96%
EPS Next Y10.67%
EPS Next 2Y13.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%55.12%
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