HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
NYSE:HSBC - US4042804066 - ADR
64.82 USD
+0.22 (+0.34%)
64.82 USD
0 (0%)
Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. HSBC was compared to 393 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 is not valued too expensively and it also shows a decent growth rate. HSBC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HSBC had positive earnings in the past year.
In the past year HSBC had a positive cash flow from operations.
In the past 5 years HSBC has always been profitable.
In the past 5 years HSBC always reported a positive cash flow from operatings.
1.2 Ratios
HSBC's Return On Assets of 0.96% is fine compared to the rest of the industry. HSBC outperforms 62.09% of its industry peers.
The Return On Equity of HSBC (16.05%) is better than 95.17% of its industry peers.
| 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
With a Profit Margin value of 24.34%, HSBC perfoms like the industry average, outperforming 53.69% of the companies in the same industry.
In the last couple of years the Profit Margin of HSBC has grown nicely.
HSBC 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) | 24.34% | ||
| 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.
The number of shares outstanding for HSBC has been reduced compared to 1 year ago.
The number of shares outstanding for HSBC has been reduced compared to 5 years ago.
The debt/assets ratio for HSBC is higher compared to a year ago.
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.
HSBC has a worse Debt to FCF ratio (7.73) than 74.05% of its industry peers.
HSBC has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, HSBC is not doing good in the industry: 89.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.96%
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 17.65% over the past year.
The Earnings Per Share has been growing by 32.82% on average over the past years. This is a very strong growth
HSBC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.05%.
Measured over the past years, HSBC shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
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
Based on estimates for the next years, HSBC will show a small growth in Earnings Per Share. The EPS will grow by 3.11% on average per year.
The Revenue is expected to grow by 1.96% on average over the next years.
EPS Next Y6.07%
EPS Next 2Y5.23%
EPS Next 3Y6.67%
EPS Next 5Y3.11%
Revenue Next Year1.38%
Revenue Next 2Y1.18%
Revenue Next 3Y1.94%
Revenue Next 5Y1.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 9.05, the valuation of HSBC can be described as very reasonable.
HSBC's Price/Earnings ratio is rather cheap when compared to the industry. HSBC is cheaper than 88.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (27.17), we can say HSBC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.80, which indicates a very decent valuation of HSBC.
Based on the Price/Forward Earnings ratio, HSBC is valued a bit cheaper than the industry average as 76.08% of the companies are valued more expensively.
HSBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HSBC is valued cheaper than 92.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| 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)1.49
PEG (5Y)0.28
EPS Next 2Y5.23%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
HSBC has a Yearly Dividend Yield of 5.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.30, HSBC pays a better dividend. On top of this HSBC pays more dividend than 88.80% of the companies listed in the same industry.
HSBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
The dividend of HSBC is nicely growing with an annual growth rate of 13.67%!
HSBC has paid a dividend for at least 10 years, which is 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.
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%
64.82
+0.22 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners38.09%
Inst Owner Change2.45%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap225.20B
Analysts70.48
Price Target67.84 (4.66%)
Short Float %0.13%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend0.92
Dividend Growth(5Y)13.67%
DP43.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)5.12%
PT rev (3m)4.38%
EPS NQ rev (1m)3.64%
EPS NQ rev (3m)-6.11%
EPS NY rev (1m)3.52%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.77 | ||
| P/FCF | 4.73 | ||
| P/OCF | 4.35 | ||
| P/B | 1.17 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.16
EY11.05%
EPS(NY)7.36
Fwd EY11.36%
FCF(TTM)13.7
FCFY21.14%
OCF(TTM)14.91
OCFY23%
SpS36.55
BVpS55.42
TBVpS51.68
PEG (NY)1.49
PEG (5Y)0.28
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
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 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
WACC5.96%
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 Year1.38%
Revenue Next 2Y1.18%
Revenue Next 3Y1.94%
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%