HSBC HOLDINGS PLC-SPONS ADR (HSBC) Fundamental Analysis & Valuation

NYSE:HSBC • US4042804066

Current stock price

79.27 USD
-0.56 (-0.7%)
At close:
81.01 USD
+1.74 (+2.2%)
Pre-Market:

This HSBC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. HSBC Profitability Analysis

1.1 Basic Checks

  • HSBC had positive earnings in the past year.
  • HSBC had a positive operating cash flow in the past year.
  • HSBC had positive earnings in each of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B 150B

1.2 Ratios

  • HSBC's Return On Assets of 1.02% is in line compared to the rest of the industry. HSBC outperforms 57.89% of its industry peers.
  • HSBC has a better Return On Equity (16.60%) than 94.47% 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 48.95% of 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 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. HSBC Health Analysis

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.
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.
  • HSBC has a worse Debt to FCF ratio (15.02) than 79.47% of its industry peers.
  • HSBC has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
  • HSBC has a Debt to Equity ratio of 1.90. This is amonst the worse of the industry: HSBC underperforms 88.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.9
Debt/FCF 15.02
Altman-Z N/A
ROIC/WACCN/A
WACC6.22%
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. HSBC Growth Analysis

3.1 Past

  • HSBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.15%, which is quite good.
  • Measured over the past years, HSBC shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.25% on average per year.
  • HSBC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
  • Measured over the past years, HSBC shows a small growth in Revenue. The Revenue has been growing by 5.67% on average per year.
EPS 1Y (TTM)16.15%
EPS 3Y19.18%
EPS 5Y37.25%
EPS Q2Q%32.14%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y13.91%
Revenue growth 5Y5.67%
Sales Q2Q%-0.85%

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 4.35% on average per year.
  • Based on estimates for the next years, HSBC will show a small growth in Revenue. The Revenue will grow by 2.09% on average per year.
EPS Next Y5.81%
EPS Next 2Y7.68%
EPS Next 3Y8.96%
EPS Next 5Y4.35%
Revenue Next Year3.01%
Revenue Next 2Y3.32%
Revenue Next 3Y3.64%
Revenue Next 5Y2.09%

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 decreasing.
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 2 4 6 8

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5

4. HSBC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.40, which indicates a very decent 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 70.26% of the companies listed in the same industry.
  • HSBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.50.
  • The Price/Forward Earnings ratio is 9.83, which indicates a very decent valuation of HSBC.
  • 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 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.4
Fwd PE 9.83
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

  • Based on the Price/Free Cash Flow ratio, HSBC is valued a bit cheaper than the industry average as 61.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.84
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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.79
PEG (5Y)0.28
EPS Next 2Y7.68%
EPS Next 3Y8.96%

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

7

5. HSBC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.79%, 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 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HSBC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.79%

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 2026 1 2 3 4

5.3 Sustainability

  • 40.97% 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.
DP40.97%
EPS Next 2Y7.68%
EPS Next 3Y8.96%
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 Fundamentals: All Metrics, Ratios and Statistics

HSBC HOLDINGS PLC-SPONS ADR

NYSE:HSBC (3/24/2026, 8:04:00 PM)

Premarket: 81.01 +1.74 (+2.2%)

79.27

-0.56 (-0.7%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-25
Earnings (Next)N/A
Inst Owners51.22%
Inst Owner Change5.36%
Ins Owners0.06%
Ins Owner Change0%
Market Cap272.15B
Revenue(TTM)130.75B
Net Income(TTM)32.91B
Analysts71.43
Price Target83.38 (5.18%)
Short Float %0.23%
Short Ratio3.49
Dividend
Industry RankSector Rank
Dividend Yield 4.79%
Yearly Dividend0.77
Dividend Growth(5Y)50.48%
DP40.97%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.92%
Min EPS beat(2)4.83%
Max EPS beat(2)11.01%
EPS beat(4)4
Avg EPS beat(4)12.92%
Min EPS beat(4)4.83%
Max EPS beat(4)18.81%
EPS beat(8)8
Avg EPS beat(8)9.54%
EPS beat(12)10
Avg EPS beat(12)7.15%
EPS beat(16)14
Avg EPS beat(16)9.94%
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)-0.66%
PT rev (3m)12.12%
EPS NQ rev (1m)3.72%
EPS NQ rev (3m)3.72%
EPS NY rev (1m)3.79%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 10.4
Fwd PE 9.83
P/S 2.08
P/FCF 10.84
P/OCF 9.14
P/B 1.37
P/tB 1.47
EV/EBITDA N/A
EPS(TTM)7.62
EY9.61%
EPS(NY)8.06
Fwd EY10.17%
FCF(TTM)7.31
FCFY9.22%
OCF(TTM)8.67
OCFY10.94%
SpS38.08
BVpS57.74
TBVpS53.92
PEG (NY)1.79
PEG (5Y)0.28
Graham Number99.49
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
WACC6.22%
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)16.15%
EPS 3Y19.18%
EPS 5Y37.25%
EPS Q2Q%32.14%
EPS Next Y5.81%
EPS Next 2Y7.68%
EPS Next 3Y8.96%
EPS Next 5Y4.35%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y13.91%
Revenue growth 5Y5.67%
Sales Q2Q%-0.85%
Revenue Next Year3.01%
Revenue Next 2Y3.32%
Revenue Next 3Y3.64%
Revenue Next 5Y2.09%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year10.43%
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 Fundamental Analysis 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 5 / 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 40.97%.