Logo image of HSBC

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

USA - NYSE:HSBC - US4042804066 - ADR

70.2 USD
+0.22 (+0.31%)
Last: 9/23/2025, 8:04:00 PM
70.26 USD
+0.06 (+0.09%)
After Hours: 9/23/2025, 8:04:00 PM
Fundamental Rating

4

Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. HSBC was compared to 392 industry peers in the Banks industry. While HSBC is still in line with the averages on profitability rating, there are concerns on its financial health. HSBC has a correct valuation and a medium growth rate. Finally HSBC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

1. Profitability

1.1 Basic Checks

In the past year HSBC was profitable.
In the past year HSBC had a positive cash flow from operations.
Each year in the past 5 years HSBC has been profitable.
Each year in the past 5 years HSBC had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

1.2 Ratios

HSBC's Return On Assets of 0.96% is fine compared to the rest of the industry. HSBC outperforms 60.97% of its industry peers.
Looking at the Return On Equity, with a value of 16.05%, HSBC belongs to the top of the industry, outperforming 95.15% of the companies in the same industry.
Industry RankSector Rank
ROA 0.96%
ROE 16.05%
ROIC N/A
ROA(3y)0.66%
ROA(5y)0.51%
ROE(3y)10.85%
ROE(5y)8.24%
ROIC(3y)N/A
ROIC(5y)N/A
HSBC Yearly ROA, ROE, ROICHSBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

With a Profit Margin value of 24.34%, HSBC perfoms like the industry average, outperforming 52.55% of the companies in the same industry.
In the last couple of years the Profit Margin of HSBC has grown nicely.
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) 24.34%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
HSBC Yearly Profit, Operating, Gross MarginsHSBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

More info and screens

1

2. Health

2.1 Basic Checks

HSBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
HSBC has less shares outstanding than it did 1 year ago.
HSBC has less shares outstanding than it did 5 years ago.
HSBC has a worse debt/assets ratio than last year.
HSBC Yearly Shares OutstandingHSBC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
HSBC Yearly Total Debt VS Total AssetsHSBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T

2.2 Solvency

HSBC has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as HSBC would need 7.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.73, HSBC is doing worse than 73.72% of the companies in the same industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: HSBC underperforms 88.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF 7.73
Altman-Z N/A
ROIC/WACCN/A
WACC5.92%
HSBC Yearly LT Debt VS Equity VS FCFHSBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.65% over the past year.
Measured over the past years, HSBC shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.82% on average per year.
HSBC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.05%.
HSBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)17.65%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%14.71%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%1.74%

3.2 Future

The Earnings Per Share is expected to grow by 3.11% on average over the next years.
Based on estimates for the next years, HSBC will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
EPS Next Y6.07%
EPS Next 2Y5.23%
EPS Next 3Y6.67%
EPS Next 5Y3.11%
Revenue Next Year1.44%
Revenue Next 2Y1.24%
Revenue Next 3Y2.01%
Revenue Next 5Y1.96%

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 accelerating: in the next years the growth will be better than in the last years.
HSBC Yearly Revenue VS EstimatesHSBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
HSBC Yearly EPS VS EstimatesHSBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

HSBC is valuated reasonably with a Price/Earnings ratio of 9.79.
83.67% of the companies in the same industry are more expensive than HSBC, based on the Price/Earnings ratio.
HSBC is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.52, the valuation of HSBC can be described as very reasonable.
HSBC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSBC is cheaper than 63.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. HSBC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.79
Fwd PE 9.52
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

91.84% of the companies in the same industry are more expensive than HSBC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.12
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

HSBC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.61
PEG (5Y)0.3
EPS Next 2Y5.23%
EPS Next 3Y6.67%

More info and screens

7

5. Dividend

5.1 Amount

HSBC has a Yearly Dividend Yield of 4.78%, which is a nice return.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 3.47. HSBC pays more dividend than 83.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HSBC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.78%

5.2 History

The dividend of HSBC is nicely growing with an annual growth rate of 13.67%!
HSBC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.67%
Div Incr Years0
Div Non Decr Years0
HSBC Yearly Dividends per shareHSBC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

43.96% of the earnings are spent on dividend by HSBC. This is a bit on the high side, but may be sustainable.
HSBC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y5.23%
EPS Next 3Y6.67%
HSBC Yearly Income VS Free CF VS DividendHSBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B
HSBC Dividend Payout.HSBC Dividend Payout, showing the Payout Ratio.HSBC Dividend Payout.PayoutRetained Earnings

More info and screens

HSBC HOLDINGS PLC-SPONS ADR

NYSE:HSBC (9/23/2025, 8:04:00 PM)

After market: 70.26 +0.06 (+0.09%)

70.2

+0.22 (+0.31%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-28 2025-10-28
Inst Owners38.09%
Inst Owner Change2.45%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap243.53B
Analysts70.48
Price Target69.82 (-0.54%)
Short Float %0.13%
Short Ratio3.21
Dividend
Industry RankSector Rank
Dividend Yield 4.78%
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-15 2025-08-15 (0.5)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.91%
Min EPS beat(2)17.01%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)13.97%
Min EPS beat(4)3.96%
Max EPS beat(4)18.81%
EPS beat(8)6
Avg EPS beat(8)4.44%
EPS beat(12)10
Avg EPS beat(12)10.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)3.16%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)5.06%
Revenue beat(8)5
Avg Revenue beat(8)1.36%
Revenue beat(12)9
Avg Revenue beat(12)15.86%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.21%
PT rev (3m)6.47%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.47%
Valuation
Industry RankSector Rank
PE 9.79
Fwd PE 9.52
P/S 1.92
P/FCF 5.12
P/OCF 4.7
P/B 1.26
P/tB 1.36
EV/EBITDA N/A
EPS(TTM)7.17
EY10.21%
EPS(NY)7.37
Fwd EY10.51%
FCF(TTM)13.72
FCFY19.55%
OCF(TTM)14.93
OCFY21.27%
SpS36.61
BVpS55.51
TBVpS51.75
PEG (NY)1.61
PEG (5Y)0.3
Profitability
Industry RankSector Rank
ROA 0.96%
ROE 16.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 24.34%
GM N/A
FCFM 37.48%
ROA(3y)0.66%
ROA(5y)0.51%
ROE(3y)10.85%
ROE(5y)8.24%
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 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF 7.73
Debt/EBITDA N/A
Cap/Depr 96.49%
Cap/Sales 3.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 154.02%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC5.92%
ROIC/WACCN/A
Cap/Depr(3y)105.46%
Cap/Depr(5y)93.3%
Cap/Sales(3y)5.5%
Cap/Sales(5y)5.34%
Profit Quality(3y)176.69%
Profit Quality(5y)1182.77%
High Growth Momentum
Growth
EPS 1Y (TTM)17.65%
EPS 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%14.71%
EPS Next Y6.07%
EPS Next 2Y5.23%
EPS Next 3Y6.67%
EPS Next 5Y3.11%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%1.74%
Revenue Next Year1.44%
Revenue Next 2Y1.24%
Revenue Next 3Y2.01%
Revenue Next 5Y1.96%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-13.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1575.61%
FCF growth 3Y-15.21%
FCF growth 5Y18.66%
OCF growth 1Y653.5%
OCF growth 3Y-14.45%
OCF growth 5Y17.03%