HSBC HOLDINGS PLC-SPONS ADR (HSBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSBC - US4042804066 - ADR
72 USD
+0.64 (+0.9%)
72 USD
0 (0%)
Taking everything into account, HSBC scores 4 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate. HSBC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HSBC was profitable.
HSBC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.96%, HSBC is in line with its industry, outperforming 56.59% of the companies in the same industry.
HSBC has a better Return On Equity (16.05%) than 94.83% 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
HSBC has a Profit Margin (24.34%) which is in line with its industry peers.
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.
HSBC has less shares outstanding than it did 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
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.
The Debt to FCF ratio of HSBC (7.73) is worse than 75.45% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that HSBC has dependencies on debt financing.
HSBC's Debt to Equity ratio of 1.91 is on the low side compared to the rest of the industry. HSBC is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.22%
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.
HSBC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.82% yearly.
Looking at the last year, HSBC shows a decrease in Revenue. The Revenue has decreased by -1.62% in the last year.
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 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
3.2 Future
HSBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.52% yearly.
The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y7.05%
EPS Next 2Y7.19%
EPS Next 3Y7.92%
EPS Next 5Y3.52%
Revenue Next Year2.39%
Revenue Next 2Y2.12%
Revenue Next 3Y2.45%
Revenue Next 5Y2.23%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.07 indicates a reasonable valuation of HSBC.
Compared to the rest of the industry, the Price/Earnings ratio of HSBC indicates a somewhat cheap valuation: HSBC is cheaper than 77.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSBC to the average of the S&P500 Index (26.15), we can say HSBC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.57, 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 63.05% of the companies are valued more expensively.
HSBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HSBC is valued cheaply inside the industry as 91.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | N/A |
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)1.43
PEG (5Y)0.31
EPS Next 2Y7.19%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
HSBC has a Yearly Dividend Yield of 4.68%, which is a nice return.
HSBC's Dividend Yield is rather good when compared to the industry average which is at 3.15. HSBC pays more dividend than 88.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HSBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
On average, the dividend of HSBC grows each year by 13.67%, which is quite nice.
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
HSBC pays out 43.96% of its income as dividend. 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 2Y7.19%
EPS Next 3Y7.92%
72
+0.64 (+0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners44.82%
Inst Owner Change2.36%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap247.19B
Revenue(TTM)126.67B
Net Income(TTM)30.91B
Analysts70.53
Price Target71.92 (-0.11%)
Short Float %0.15%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)1.5%
PT rev (3m)6.01%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)1.16%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.57 | ||
| P/S | 1.95 | ||
| P/FCF | 5.19 | ||
| P/OCF | 4.77 | ||
| P/B | 1.28 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY9.93%
EPS(NY)7.53
Fwd EY10.45%
FCF(TTM)13.87
FCFY19.26%
OCF(TTM)15.08
OCFY20.95%
SpS36.99
BVpS56.09
TBVpS52.29
PEG (NY)1.43
PEG (5Y)0.31
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
WACC6.22%
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 3Y25.99%
EPS 5Y32.82%
EPS Q2Q%5.88%
EPS Next Y7.05%
EPS Next 2Y7.19%
EPS Next 3Y7.92%
EPS Next 5Y3.52%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y4.95%
Revenue growth 5Y1.3%
Sales Q2Q%2.43%
Revenue Next Year2.39%
Revenue Next 2Y2.12%
Revenue Next 3Y2.45%
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.
What is the valuation status for HSBC stock?
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 expected EPS growth for HSBC stock?
The Earnings per Share (EPS) of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is expected to grow by 7.05% in the next year.
Is the dividend of HSBC HOLDINGS PLC-SPONS ADR sustainable?
The dividend rating of HSBC HOLDINGS PLC-SPONS ADR (HSBC) is 7 / 10 and the dividend payout ratio is 43.96%.