HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
80.45 USD
+1.78 (+2.26%)
80.85 USD
+0.4 (+0.5%)
We assign a fundamental rating of 4 out of 10 to HSBC. HSBC was compared to 387 industry peers in the Banks industry. There are concerns on the financial health of HSBC while its profitability can be described as average. HSBC has a decent growth rate and is not valued too expensively. Finally HSBC also has an excellent dividend rating.
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.
HSBC had positive earnings in each of the past 5 years.
In the past 5 years HSBC always reported a positive cash flow from operatings.
1.2 Ratios
HSBC has a Return On Assets of 0.96%. This is comparable to the rest of the industry: HSBC outperforms 55.81% 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 95.09% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
HSBC has a Profit Margin of 24.34%. This is comparable to the rest of the industry: HSBC outperforms 49.61% 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 Rank | Sector 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
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.
Compared to 1 year ago, HSBC has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HSBC is 7.73, which is on the high side as it means it would take HSBC, 7.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.73, HSBC is doing worse than 76.23% 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.
The Debt to Equity ratio of HSBC (1.91) is worse than 88.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.45%
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 grown by an nice 12.70% over the past year.
Measured over the past years, HSBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.51% on average per year.
HSBC shows a decrease in Revenue. In the last year, the revenue decreased by -1.62%.
HSBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)12.7%
EPS 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
3.2 Future
The Earnings Per Share is expected to grow by 3.52% 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 2.23% on average per year.
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.25, the valuation of HSBC can be described as reasonable.
Based on the Price/Earnings ratio, HSBC is valued a bit cheaper than the industry average as 64.60% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. HSBC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.35, the valuation of HSBC can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as HSBC.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSBC indicates a rather cheap valuation: HSBC is cheaper than 90.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.14
PEG (5Y)0.83
EPS Next 2Y8.92%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, HSBC is a good candidate for dividend investing.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 2.78. HSBC pays more dividend than 84.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, HSBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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
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.
The dividend of HSBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.96%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
80.45
+1.78 (+2.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners45.11%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap276.20B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target76.44 (-4.98%)
Short Float %0.18%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)13
Avg EPS beat(16)10.07%
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)13
Avg Revenue beat(16)34.2%
PT rev (1m)6.29%
PT rev (3m)10.17%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)1.8%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.35 | ||
| P/S | 2.17 | ||
| P/FCF | 5.8 | ||
| P/OCF | 5.33 | ||
| P/B | 1.43 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY8.89%
EPS(NY)7.77
Fwd EY9.66%
FCF(TTM)13.87
FCFY17.24%
OCF(TTM)15.08
OCFY18.75%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.14
PEG (5Y)0.83
Graham Number94.99
Profitability
| Industry Rank | Sector 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
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 3Y16.29%
PM growth 5Y29.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector 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
WACC6.45%
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)12.7%
EPS 3Y21.77%
EPS 5Y13.51%
EPS Q2Q%5.88%
EPS Next Y9.87%
EPS Next 2Y8.92%
EPS Next 3Y8.98%
EPS Next 5Y3.52%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
Revenue Next Year3.12%
Revenue Next 2Y2.49%
Revenue Next 3Y2.75%
Revenue Next 5Y2.23%
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%
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 4 / 10 to HSBC.
Can you provide the valuation status for HSBC HOLDINGS PLC-SPONS ADR?
ChartMill assigns a valuation rating of 6 / 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 7 / 10 and the dividend payout ratio is 43.96%.