HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis

NYSE:HSBC • US4042804066

92.87 USD
-1.63 (-1.72%)
Last: Feb 27, 2026, 12:44 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HSBC. HSBC was compared to 379 industry peers in the Banks industry. HSBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HSBC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • HSBC had positive earnings in the past year.
  • HSBC had a positive operating cash flow in the past year.
  • In the past 5 years HSBC has always been profitable.
  • HSBC had a positive operating cash flow in each of the past 5 years.
HSBC Yearly Net Income VS EBIT VS OCF VS FCFHSBC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B 150B

1.2 Ratios

  • The Return On Assets of HSBC (1.02%) is better than 60.95% of its industry peers.
  • HSBC has a better Return On Equity (16.60%) than 95.25% of its industry peers.
Industry RankSector Rank
ROA 1.02%
ROE 16.6%
ROIC N/A
ROA(3y)0.72%
ROA(5y)0.61%
ROE(3y)11.71%
ROE(5y)9.98%
ROIC(3y)N/A
ROIC(5y)N/A
HSBC Yearly ROA, ROE, ROICHSBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • HSBC has a Profit Margin of 25.17%. This is comparable to the rest of the industry: HSBC outperforms 54.62% of its industry peers.
  • HSBC's Profit Margin has improved in the last couple of years.
  • The Operating Margin and Gross Margin are not available for HSBC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 25.17%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-0.16%
PM growth 5Y32.66%
GM growth 3YN/A
GM growth 5YN/A
HSBC Yearly Profit, Operating, Gross MarginsHSBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • HSBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, HSBC has less shares outstanding
  • HSBC has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for HSBC is higher compared to a year ago.
HSBC Yearly Shares OutstandingHSBC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
HSBC Yearly Total Debt VS Total AssetsHSBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T

2.2 Solvency

  • HSBC has a debt to FCF ratio of 15.02. This is a negative value and a sign of low solvency as HSBC would need 15.02 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 15.02, HSBC is doing worse than 79.68% of the companies in the same industry.
  • A Debt/Equity ratio of 1.90 is on the high side and indicates that HSBC has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.90, HSBC is not doing good in the industry: 88.13% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.9
Debt/FCF 15.02
Altman-Z N/A
ROIC/WACCN/A
WACC6.52%
HSBC Yearly LT Debt VS Equity VS FCFHSBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B 150B 200B 250B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HSBC Yearly Current Assets VS Current LiabilitesHSBC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B 250B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 130.00% over the past year.
  • HSBC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 57.35% yearly.
  • Looking at the last year, HSBC shows a small growth in Revenue. The Revenue has grown by 0.64% in the last year.
  • HSBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
EPS 1Y (TTM)130%
EPS 3Y49.66%
EPS 5Y57.35%
EPS Q2Q%560.71%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y13.91%
Revenue growth 5Y5.67%
Sales Q2Q%-0.85%

3.2 Future

  • HSBC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.08% yearly.
  • The Revenue is expected to grow by 2.12% on average over the next years.
EPS Next Y-48.44%
EPS Next 2Y-25.01%
EPS Next 3Y-16.32%
EPS Next 5Y-12.08%
Revenue Next Year1.99%
Revenue Next 2Y2.8%
Revenue Next 3Y2.69%
Revenue Next 5Y2.12%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HSBC Yearly Revenue VS EstimatesHSBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
HSBC Yearly EPS VS EstimatesHSBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.15, the valuation of HSBC can be described as very cheap.
  • Based on the Price/Earnings ratio, HSBC is valued cheaper than 96.04% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.11, HSBC is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.94, the valuation of HSBC can be described as reasonable.
  • HSBC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HSBC is more expensive than 60.42% of the companies in the same industry.
  • HSBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.13.
Industry RankSector Rank
PE 6.15
Fwd PE 11.94
HSBC Price Earnings VS Forward Price EarningsHSBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • HSBC's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.7
EV/EBITDA N/A
HSBC Per share dataHSBC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • A cheap valuation may be justified as HSBC's earnings are expected to decrease with -16.32% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-25.01%
EPS Next 3Y-16.32%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.98%, HSBC has a reasonable but not impressive dividend return.
  • HSBC's Dividend Yield is rather good when compared to the industry average which is at 2.74. HSBC pays more dividend than 81.53% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, HSBC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.98%

5.2 History

  • The dividend of HSBC is nicely growing with an annual growth rate of 50.48%!
  • HSBC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)50.48%
Div Incr Years0
Div Non Decr Years0
HSBC Yearly Dividends per shareHSBC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

  • HSBC pays out 40.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.97%
EPS Next 2Y-25.01%
EPS Next 3Y-16.32%
HSBC Yearly Income VS Free CF VS DividendHSBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B 150B
HSBC Dividend Payout.HSBC Dividend Payout, showing the Payout Ratio.HSBC Dividend Payout.PayoutRetained Earnings

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HSBC HOLDINGS PLC-SPONS ADR

NYSE:HSBC (2/27/2026, 12:44:00 PM)

92.87

-1.63 (-1.72%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-25
Earnings (Next)N/A
Inst Owners45.11%
Inst Owner Change5.36%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap318.84B
Revenue(TTM)130.75B
Net Income(TTM)32.91B
Analysts71.43
Price Target83.38 (-10.22%)
Short Float %0.22%
Short Ratio3.77
Dividend
Industry RankSector Rank
Dividend Yield 3.98%
Yearly Dividend0.77
Dividend Growth(5Y)50.48%
DP40.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)229.95%
Min EPS beat(2)4.83%
Max EPS beat(2)455.06%
EPS beat(4)4
Avg EPS beat(4)123.93%
Min EPS beat(4)4.83%
Max EPS beat(4)455.06%
EPS beat(8)8
Avg EPS beat(8)65.04%
EPS beat(12)10
Avg EPS beat(12)44.15%
EPS beat(16)14
Avg EPS beat(16)37.69%
Revenue beat(2)1
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-5.27%
Max Revenue beat(2)1.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)3.16%
Revenue beat(8)6
Avg Revenue beat(8)2.61%
Revenue beat(12)8
Avg Revenue beat(12)2.84%
Revenue beat(16)12
Avg Revenue beat(16)21.09%
PT rev (1m)7.83%
PT rev (3m)16.72%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 6.15
Fwd PE 11.94
P/S 2.44
P/FCF 12.7
P/OCF 10.71
P/B 1.61
P/tB 1.72
EV/EBITDA N/A
EPS(TTM)15.09
EY16.25%
EPS(NY)7.78
Fwd EY8.38%
FCF(TTM)7.31
FCFY7.87%
OCF(TTM)8.67
OCFY9.34%
SpS38.08
BVpS57.74
TBVpS53.92
PEG (NY)N/A
PEG (5Y)0.11
Graham Number140.01
Profitability
Industry RankSector Rank
ROA 1.02%
ROE 16.6%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 25.17%
GM N/A
FCFM 19.2%
ROA(3y)0.72%
ROA(5y)0.61%
ROE(3y)11.71%
ROE(5y)9.98%
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-0.16%
PM growth 5Y32.66%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.9
Debt/FCF 15.02
Debt/EBITDA N/A
Cap/Depr 94.81%
Cap/Sales 3.56%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 76.29%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC6.52%
ROIC/WACCN/A
Cap/Depr(3y)98.89%
Cap/Depr(5y)98.87%
Cap/Sales(3y)4.81%
Cap/Sales(5y)5.35%
Profit Quality(3y)181.62%
Profit Quality(5y)289.64%
High Growth Momentum
Growth
EPS 1Y (TTM)130%
EPS 3Y49.66%
EPS 5Y57.35%
EPS Q2Q%560.71%
EPS Next Y-48.44%
EPS Next 2Y-25.01%
EPS Next 3Y-16.32%
EPS Next 5Y-12.08%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y13.91%
Revenue growth 5Y5.67%
Sales Q2Q%-0.85%
Revenue Next Year1.99%
Revenue Next 2Y2.8%
Revenue Next 3Y2.69%
Revenue Next 5Y2.12%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year10.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-59.12%
FCF growth 3Y18.87%
FCF growth 5Y-32.47%
OCF growth 1Y-54.42%
OCF growth 3Y15.43%
OCF growth 5Y-30.4%

HSBC HOLDINGS PLC-SPONS ADR / HSBC FAQ

Can you provide the ChartMill fundamental rating for HSBC HOLDINGS PLC-SPONS ADR?

ChartMill assigns a fundamental rating of 3 / 10 to HSBC.


Can you provide the valuation status for HSBC HOLDINGS PLC-SPONS ADR?

ChartMill assigns a valuation rating of 4 / 10 to HSBC HOLDINGS PLC-SPONS ADR (HSBC). This can be considered as Fairly Valued.


What is the profitability of HSBC stock?

HSBC HOLDINGS PLC-SPONS ADR (HSBC) has a profitability rating of 4 / 10.


Can you provide the financial health for HSBC stock?

The financial health rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 1 / 10.


Can you provide the dividend sustainability for HSBC stock?

The dividend rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 6 / 10 and the dividend payout ratio is 40.97%.