Loading...

HSBC Holdings

ENXTPA:HSB
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HSB
ENXTPA
£133B
Market Cap
  1. Home
  2. FR
  3. Banks
Company description

HSBC Holdings plc provides banking and financial products and services. The last earnings update was 20 days ago. More info.


Add to Portfolio Compare Print
HSB Share Price and Events
7 Day Returns
-1.7%
ENXTPA:HSB
-1.5%
FR Banks
-0.1%
FR Market
1 Year Returns
-11.4%
ENXTPA:HSB
-18.4%
FR Banks
-3.1%
FR Market
HSB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HSBC Holdings (HSB) -1.7% -3.8% 3% -11.4% 27.4% -3.6%
FR Banks -1.5% -10.8% 5% -18.4% -8.9% -20.3%
FR Market -0.1% -3.4% 3.8% -3.1% 26.1% 27%
1 Year Return vs Industry and Market
  • HSB outperformed the Banks industry which returned -18.4% over the past year.
  • HSB underperformed the Market in France which returned -3.1% over the past year.
Price Volatility
HSB
Industry
5yr Volatility vs Market

Value

 Is HSBC Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HSBC Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HSBC Holdings.

ENXTPA:HSB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 20 analysts.
= Stable Book Value * Return on Equity
= $9.04 * 8.8%
$0.80
Book Value of Equity per Share Weighted future Book Value estimates from 12 analysts. $9.04
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year FR Government Bond Rate 0.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTPA:HSB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FR Govt Bond Rate 0.7%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.589 (1 + (1- 19%) (282.57%))
1.628
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.63
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.73% + (1.628 * 6.65%)
11.56%

Discounted Cash Flow Calculation for ENXTPA:HSB using Excess Returns Model Model

The calculations below outline how an intrinsic value for HSBC Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ENXTPA:HSB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.8% – 11.56%) * $9.04)
$-0.25
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.25 / (11.56% - 0.73%)
$-2.29
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.04 + $-2.29
$6.74
ENXTPA:HSB Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:HSBA)
0.789
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $6.74 x 0.789
£5.32
Value per share (EUR) From above. €6.01
Current discount Discount to share price of €7.44
= -1 x (€7.44 - €6.01) / €6.01
-23.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HSBC Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HSBC Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HSBC Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTPA:HSB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.69
LSE:HSBA Share Price ** LSE (2019-05-23) in GBP £6.59
LSE:HSBA Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.267 $8.35
France Banks Industry PE Ratio Median Figure of 5 Publicly-Listed Banks Companies 8.14x
France Market PE Ratio Median Figure of 419 Publicly-Listed Companies 17.65x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HSBC Holdings.

ENXTPA:HSB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HSBA Share Price ÷ EPS (both in USD)

= 8.35 ÷ 0.69

12.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HSBC Holdings is overvalued based on earnings compared to the FR Banks industry average.
  • HSBC Holdings is good value based on earnings compared to the France market.
Price based on expected Growth
Does HSBC Holdings's expected growth come at a high price?
Raw Data
ENXTPA:HSB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
4.6%per year
Europe Banks Industry PEG Ratio Median Figure of 114 Publicly-Listed Banks Companies 0.77x
France Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

ENXTPA:HSB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.03x ÷ 4.6%

2.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HSBC Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HSBC Holdings's assets?
Raw Data
ENXTPA:HSB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $9.40
LSE:HSBA Share Price * LSE (2019-05-23) in GBP £6.59
LSE:HSBA Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.267 $8.35
France Banks Industry PB Ratio Median Figure of 5 Publicly-Listed Banks Companies 0.51x
France Market PB Ratio Median Figure of 621 Publicly-Listed Companies 1.44x
ENXTPA:HSB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HSBA Share Price ÷ Book Value per Share (both in USD)

= 8.35 ÷ 9.40

0.89x

* Primary Listing of HSBC Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HSBC Holdings is overvalued based on assets compared to the FR Banks industry average.
X
Value checks
We assess HSBC Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. HSBC Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HSBC Holdings expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HSBC Holdings expected to grow at an attractive rate?
  • HSBC Holdings's earnings growth is expected to exceed the low risk savings rate of 0.7%.
Growth vs Market Checks
  • HSBC Holdings's earnings growth is positive but not above the France market average.
  • HSBC Holdings's revenue growth is positive but not above the France market average.
Annual Growth Rates Comparison
Raw Data
ENXTPA:HSB Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTPA:HSB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 4.6%
ENXTPA:HSB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 4%
France Banks Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
Europe Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
France Market Earnings Growth Rate Market Cap Weighted Average 13.2%
France Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTPA:HSB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTPA:HSB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 61,881 16,634 2
2021-12-31 60,684 15,980 14
2020-12-31 58,829 15,396 17
2019-12-31 56,019 14,610 16
ENXTPA:HSB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 52,434 13,656
2018-12-31 52,131 12,214 12,608
2018-09-30 51,866 10,797
2018-06-30 51,105 -107,447 9,856
2018-03-31 50,411 9,639
2018-01-01 49,628 -112,689 9,683
2017-09-30 46,545 5,517
2017-06-30 42,961 -9,043 1,942
2017-03-31 43,504 541
2016-12-31 44,562 77,877 1,299
2016-09-30 46,117 3,464
2016-06-30 51,618 125,233 9,310

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HSBC Holdings's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • HSBC Holdings's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTPA:HSB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from HSBC Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:HSB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.82 0.85 0.79 2.00
2021-12-31 0.75 0.86 0.68 9.00
2020-12-31 0.74 0.86 0.67 14.00
2019-12-31 0.72 0.77 0.67 14.00
ENXTPA:HSB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.69
2018-12-31 0.63
2018-09-30 0.54
2018-06-30 0.50
2018-03-31 0.48
2018-01-01 0.48
2017-09-30 0.28
2017-06-30 0.10
2017-03-31 0.03
2016-12-31 0.07
2016-09-30 0.18
2016-06-30 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HSBC Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HSBC Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the France market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HSBC Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HSBC Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HSBC Holdings's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HSBC Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • HSBC Holdings's 1-year earnings growth exceeds its 5-year average (41.7% vs -11.7%)
  • HSBC Holdings's earnings growth has exceeded the FR Banks industry average in the past year (41.7% vs 4.1%).
Earnings and Revenue History
HSBC Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HSBC Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:HSB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 52,434.00 13,656.00 33,845.00
2018-12-31 52,131.00 12,608.00 33,845.00
2018-09-30 51,866.00 10,797.00 34,188.00
2018-06-30 51,105.00 9,856.00 34,188.00
2018-03-31 50,411.00 9,639.00 34,188.00
2018-01-01 49,628.00 9,683.00 34,188.00
2017-09-30 46,545.00 5,517.00 35,791.00
2017-06-30 42,961.00 1,942.00 35,791.00
2017-03-31 43,504.00 541.00 35,791.00
2016-12-31 44,562.00 1,299.00 35,791.00
2016-09-30 46,117.00 3,464.00 38,831.00
2016-06-30 51,618.00 9,310.00 38,831.00
2016-03-31 54,511.00 11,201.00 38,831.00
2015-12-31 56,018.00 12,572.00 38,831.00
2015-09-30 58,887.00 14,785.00 40,313.00
2015-06-30 59,455.00 12,987.00 40,313.00
2015-03-31 57,513.00 13,163.00 40,313.00
2014-12-31 57,277.00 13,115.00 40,313.00
2014-09-30 57,805.00 15,324.00 37,625.00
2014-06-30 56,275.00 15,093.00 37,625.00
2014-03-31 56,245.00 14,489.00 37,625.00
2013-12-31 58,683.00 15,631.00 37,625.00
2013-09-30 56,931.00 16,002.00 41,958.00
2013-06-30 56,089.00 15,300.00 41,958.00
2013-03-31 56,333.00 17,226.00 41,958.00
2012-12-31 52,923.00 13,454.00 41,958.00
2012-09-30 54,482.00 12,723.00 40,141.00
2012-06-30 57,896.00 15,447.00 40,141.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HSBC Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HSBC Holdings used its assets more efficiently than the FR Banks industry average last year based on Return on Assets.
  • Unable to establish if HSBC Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess HSBC Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HSBC Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HSBC Holdings's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of HSBC Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HSBC Holdings Company Filings, last reported 1 month ago.

ENXTPA:HSB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 196,328.00 476,240.00 877,267.00
2018-12-31 194,249.00 603,542.00 878,985.00
2018-09-30 193,232.00 612,774.00 847,492.00
2018-06-30 191,294.00 637,553.00 873,810.00
2018-03-31 203,562.00 607,006.00 895,706.00
2018-01-01 196,224.00 439,220.00 863,030.00
2017-09-30 198,744.00 490,410.00 903,694.00
2017-06-30 195,786.00 546,384.00 909,943.00
2017-03-31 186,026.00 503,177.00 853,915.00
2016-12-31 182,578.00 536,371.00 861,800.00
2016-09-30 195,312.00 597,251.00 939,995.00
2016-06-30 198,297.00 648,758.00 966,335.00
2016-03-31 200,367.00 604,893.00 908,853.00
2015-12-31 197,518.00 533,310.00 801,511.00
2015-09-30 201,429.00 566,898.00 882,198.00
2015-06-30 201,382.00 568,412.00 873,788.00
2015-03-31 196,494.00 671,902.00 1,018,363.00
2014-12-31 199,978.00 640,460.00 988,396.00
2014-09-30 202,165.00 619,053.00 964,525.00
2014-06-30 198,722.00 629,189.00 1,067,605.00
2014-03-31 192,448.00 669,532.00 996,716.00
2013-12-31 190,459.00 647,090.00 992,359.00
2013-09-30 187,694.00 487,201.00 909,813.00
2013-06-30 182,361.00 569,926.00 1,084,549.00
2013-03-31 183,748.00 539,713.00 908,815.00
2012-12-31 183,129.00 623,465.00 981,739.00
2012-09-30 179,764.00 577,439.00 932,439.00
2012-06-30 173,766.00 630,028.00 933,296.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • HSBC Holdings has an acceptable proportion of non-loan assets held.
  • HSBC Holdings's liabilities are made up of primarily low risk sources of funding.
  • Loans at HSBC Holdings are broadly funded by customer deposits.
  • HSBC Holdings's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • HSBC Holdings has a low allowance for bad loans.
  • HSBC Holdings has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess HSBC Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HSBC Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is HSBC Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.11%
Current annual income from HSBC Holdings dividends. Estimated to be 6.16% next year.
If you bought €2,000 of HSBC Holdings shares you are expected to receive €122 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HSBC Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.58%).
  • HSBC Holdings's dividend is above the markets top 25% of dividend payers in France (4.51%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTPA:HSB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
France Banks Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 7%
France Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.1%
France Minimum Threshold Dividend Yield 10th Percentile 0.9%
France Bottom 25% Dividend Yield 25th Percentile 1.6%
France Top 25% Dividend Yield 75th Percentile 4.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTPA:HSB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.51 3.00
2021-12-31 0.51 16.00
2020-12-31 0.52 19.00
2019-12-31 0.51 18.00
ENXTPA:HSB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.510 6.015
2018-02-20 0.510 5.738
2017-02-21 0.510 5.462
2016-02-22 0.510 7.207
2015-02-23 0.500 6.086
2014-02-24 0.490 4.859
2013-03-04 0.450 4.139
2012-11-16 0.360 3.365
2012-07-30 0.360 3.885
2012-02-27 1.640 18.957
2012-01-09 0.360 4.228
2011-08-24 0.360 4.521
2011-05-03 0.360 3.678
2011-02-28 0.360 3.400
2010-03-15 0.340 3.311
2010-03-01 0.340 3.246
2009-11-02 0.320 2.834

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of HSBC Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess HSBC Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HSBC Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HSBC Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HSBC Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Flint
COMPENSATION $4,753,676
AGE 49
TENURE AS CEO 1.3 years
CEO Bio

Mr. John Michael Flint has been Group Chief Executive and Executive Director of HSBC Holdings plc since February 21, 2018 and serves as its Member of Group Management Board. Mr. Flint serves as Group Chief Executive Officer of HSBC Bank Plc. He was the Chief Executive of Retail Banking & Wealth Management at HSBC Holdings plc since January 1, 2013 until January 31, 2018 and its Group Managing Director since December 2012. He served as Group Group Head of Strategy & Planning and Chief of Staff at HSBC Holdings plc from January 2012 to December 31, 2013. He served as the Chief Executive Officer of HSBC Global Asset Management (UK) Limited until December 2011. He served as the Chief Executive Officer of HSBC Global Asset Management Arm from January 2010 to December 2011. He served as the Chief Executive of Global Asset Management, Group General Manager, Deputy Head of Global Markets and Group Treasurer at HSBC Bank Plc. He joined HSBC in 1989. He served at HSBC in Asia helping to establish and expand the HSBC Global Markets business in the region and served as the Regional Head of Balance Sheet Management for the Europe, Middle East and Africa Region since 2004. He served as the Group Treasurer and assumed global responsibility for balance sheet management at HSBC since 2006. He served as Director of HSBC Bank Canada since February 2012. He served as a Non-Executive Director of HSBC Global Asset Management (Hong Kong) Ltd until January 06, 2012. He is a Member of the Institute of International Finance Market Monitoring Group. He serves as Chairman of The HongKong and Shanghai Banking Corporation Limited since February 21, 2018. He was appointed as a director of The HongKong and Shanghai Banking Corporation Limited on 16 January 2018. Mr. John is a member of the Monetary Authority of Singapore International Advisory Panel and the International Business Council of the World Economic Forum. He is also a member of the Climate Finance Leadership Initiative. He holds a B.Sc (Hons) in Economics.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is higher than average for companies of similar size in France.
Management Team Tenure

Average tenure and age of the HSBC Holdings management team in years:

4.4
Average Tenure
54
Average Age
  • The tenure for the HSBC Holdings management team is about average.
Management Team

John Flint

TITLE
Group Chief Executive
COMPENSATION
$5M
AGE
49
TENURE
1.3 yrs

Menasey Moses

TITLE
Group Chief Risk Officer
COMPENSATION
$4M
AGE
60
TENURE
8.4 yrs

Ewen Stevenson

TITLE
Group CFO & Executive Director
AGE
52
TENURE
0.3 yrs

Peter Wong

TITLE
Member of the Group Management Board
AGE
67

Samir Assaf

TITLE
CEO of Global Banking & Markets Business and Member of the Group Management Board
AGE
58

Pat Burke

TITLE
Member of the Group Management Board & Group Managing Director
AGE
56
TENURE
3.8 yrs

António P. Simões

TITLE
Chief Executive of Global Private Banking & Member of Group Management Board
AGE
43

Stuart Levey

TITLE
Chief Legal Officer & Member of the Group Management Board
AGE
54
TENURE
7.3 yrs

Manveen Kaur

TITLE
Head of Wholesale Market & Credit Risk
AGE
54
TENURE
6.1 yrs

Andy Maguire

TITLE
Chairman of Advisory Board
AGE
51
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the HSBC Holdings board of directors in years:

2.3
Average Tenure
59.5
Average Age
  • The average tenure for the HSBC Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mark Tucker

TITLE
Non-Executive Group Chairman of the Board
COMPENSATION
$2M
AGE
61
TENURE
1.6 yrs

John Flint

TITLE
Group Chief Executive
COMPENSATION
$5M
AGE
49
TENURE
1.3 yrs

Jon Symonds

TITLE
Deputy Group Chairman & Senior Independent Non-Executive Director
COMPENSATION
$654K
AGE
59
TENURE
0.8 yrs

Menasey Moses

TITLE
Group Chief Risk Officer
COMPENSATION
$4M
AGE
60
TENURE
5.3 yrs

Ewen Stevenson

TITLE
Group CFO & Executive Director
AGE
52
TENURE
0.3 yrs

Andy Maguire

TITLE
Chairman of Advisory Board
AGE
51
TENURE
2.3 yrs

Digby Jones

TITLE
Head of International Business Advisory Board
AGE
62

Pauline Françoise van der Meer Mohr

TITLE
Independent Non-Executive Director
COMPENSATION
$256K
AGE
58
TENURE
3.7 yrs

Jack Tai

TITLE
Independent Non-Executive Director
COMPENSATION
$275K
AGE
68
TENURE
2.7 yrs

Laura Cha

TITLE
Independent Non-Executive Director
COMPENSATION
$268K
AGE
68
TENURE
8.2 yrs
Who owns this company?
Recent Insider Trading
  • HSBC Holdings insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
11. Apr 19 Buy Henri René Marie de la Croix de Castries Individual 08. Apr 19 08. Apr 19 460 €6.32 €2,907
20. Mar 19 Sell Menasey Moses Individual 19. Mar 19 19. Mar 19 -146,649 €6.25 €-916,556
20. Mar 19 Sell Samir Assaf Individual 19. Mar 19 19. Mar 19 -100,457 €6.25 €-627,856
28. Feb 19 Buy Jackson Tai Individual 26. Feb 19 26. Feb 19 10,440 €6.15 €64,241
21. Feb 19 Sell Samir Assaf Individual 20. Feb 19 20. Feb 19 -60,356 €6.48 €-390,823
21. Feb 19 Buy Ewen Stevenson Individual 20. Feb 19 20. Feb 19 100,000 €6.45 €645,340
21. Jan 19 Sell May-Lung Cha Individual 23. Aug 18 23. Aug 18 -8,000 €6.92 €-55,397
11. Jan 19 Buy John Flint Individual 21. Nov 18 21. Nov 18 4,853 €6.45 €31,286
10. Jan 19 Buy John Flint Individual 06. Jun 18 30. Aug 18 5,439 €7.52 €40,463
05. Dec 18 Sell Iain Mackay Individual 04. Dec 18 04. Dec 18 -71,587 €6.74 €-482,496
02. Nov 18 Buy Pin An Trust Company 01. Nov 18 01. Nov 18 5,375,600 €6.40 €34,421,927
01. Oct 18 Buy Tung Shun Wong Individual 27. Sep 18 27. Sep 18 20,812 €6.85 €141,551
01. Oct 18 Buy Samir Assaf Individual 27. Sep 18 27. Sep 18 11,736 €6.85 €80,333
01. Oct 18 Buy Peter Boyles Individual 27. Sep 18 27. Sep 18 7,777 €6.85 €45,290
03. Oct 18 Buy Jonathan Symonds Individual 27. Sep 18 27. Sep 18 476 €6.85 €3,259
26. Sep 18 Sell Peter Boyles Individual 25. Sep 18 25. Sep 18 -100,000 €6.73 €-673,000
17. Sep 18 Sell Iain Mackay Individual 14. Sep 18 14. Sep 18 -24,021 €6.57 €-157,818
10. Aug 18 Buy Jackson Tai Individual 07. Aug 18 07. Aug 18 10,105 €7.26 €73,381
09. Jul 18 Buy Tung Shun Wong Individual 05. Jul 18 05. Jul 18 13,232 €7.00 €92,637
09. Jul 18 Buy Peter Boyles Individual 05. Jul 18 05. Jul 18 4,506 €7.00 €31,547
X
Management checks
We assess HSBC Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HSBC Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services. The Commercial Banking segment provides services and financing for buyers and suppliers in the trade cycle; liquidity and cash management services; capital financing, including debt, equity, and advisory services; and insurance and investment products, such as business and financial protection, trade insurance, employee benefits, corporate wealth management, and other commercial risk insurance products to small enterprises, mid-market companies, and multinationals. The Global Banking and Markets segment is involved in the provision of advisory, financing, prime, research and analysis, securities, trading and sales, and transaction banking services to corporates, financial institutions, and resources and energy groups. The Global Private Banking segment provides private banking, and investment and wealth management services to business owners, entrepreneurs, and senior executives and their families. As of January 14, 2019, the company operated approximately 3,800 offices in 66 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

Details
Name: HSBC Holdings plc
HSB
Exchange: ENXTPA
Founded: 1865
£150,929,015,315
20,181,535,351
Website: http://www.hsbc.com
Address: HSBC Holdings plc
8 Canada Square,
London,
Greater London, E14 5HQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HSBA Ordinary Shares USD 0.50 London Stock Exchange GB GBP 08. Apr 1991
OTCPK HBCY.F Ordinary Shares USD 0.50 Pink Sheets LLC US USD 08. Apr 1991
DB HBC1 Ordinary Shares USD 0.50 Deutsche Boerse AG DE EUR 08. Apr 1991
XTRA HBC1 Ordinary Shares USD 0.50 XETRA Trading Platform DE EUR 08. Apr 1991
SEHK 5 Ordinary Shares USD 0.50 The Stock Exchange of Hong Kong Ltd. HK HKD 08. Apr 1991
SHSC 5 Ordinary Shares USD 0.50 Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 08. Apr 1991
SZSC 5 Ordinary Shares USD 0.50 The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 08. Apr 1991
ENXTPA HSB Ordinary Shares USD 0.50 Euronext Paris FR EUR 08. Apr 1991
BER HSBC.BH Ordinary Shares USD 0.50 The Bermuda Stock Exchange BM USD 08. Apr 1991
BATS-CHIXE HSBAL Ordinary Shares USD 0.50 BATS 'Chi-X Europe' GB GBP 08. Apr 1991
BATS-CHIXE HSBP Ordinary Shares USD 0.50 BATS 'Chi-X Europe' GB EUR 08. Apr 1991
NYSE HSBC ADR EACH REPR 5 ORD USD0.50 New York Stock Exchange US USD 26. Apr 1991
NYSE HSEA CL SUB CAP 8.125% New York Stock Exchange US USD 03. Apr 2008
DB HBC2 ADR EACH REPR 5 ORD USD0.50 Deutsche Boerse AG DE EUR 26. Apr 1991
BMV HBC N ADR EACH REPR 5 ORD USD0.50 Bolsa Mexicana de Valores MX MXN 26. Apr 1991
Number of employees
Current staff
Staff numbers
238,359
HSBC Holdings employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 20:55
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.