Stock Analysis Report

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Last Updated

2021/06/21 22:55 UTC

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Company Financials +

Executive Summary

HSBC Holdings plc provides banking and financial products and services worldwide. More Details

Snowflake Analysis

Excellent balance sheet with proven track record.

Similar Companies

Share Price & News

How has HSBC Holdings's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: HSBA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HSBA's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




GB Banks


GB Market

1 Year Return




GB Banks


GB Market

Return vs Industry: HSBA underperformed the UK Banks industry which returned 31% over the past year.

Return vs Market: HSBA underperformed the UK Market which returned 16% over the past year.

Shareholder returns

7 Day-2.9%-2.9%-1.7%
30 Day-4.0%-2.1%-0.04%
90 Day0.5%4.0%5.4%
1 Year14.6%11.9%33.8%31.0%21.6%16.0%
3 Year-32.1%-39.3%-21.9%-29.1%11.6%-1.3%
5 Year22.1%-2.6%15.0%-2.7%51.8%23.3%

Long-Term Price Volatility Vs. Market

How volatile is HSBC Holdings's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is HSBC Holdings undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HSBA (£4.29) is trading below our estimate of fair value (£5.93)

Significantly Below Fair Value: HSBA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: HSBA is poor value based on its PE Ratio (19.9x) compared to the UK Banks industry average (12x).

PE vs Market: HSBA is good value based on its PE Ratio (19.9x) compared to the UK market (24.5x).

Price to Earnings Growth Ratio

PEG Ratio: HSBA is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: HSBA's PB Ratio (0.7x) is in line with the GB Banks industry average.

Future Growth

How is HSBC Holdings forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBA's forecast earnings growth (18.7% per year) is above the savings rate (0.9%).

Earnings vs Market: HSBA's earnings (18.7% per year) are forecast to grow faster than the UK market (17.7% per year).

High Growth Earnings: HSBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: HSBA's revenue (4.3% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: HSBA's revenue (4.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HSBA's Return on Equity is forecast to be low in 3 years time (8%).

Past Performance

How has HSBC Holdings performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSBA has high quality earnings.

Growing Profit Margin: HSBA's current net profit margins (13.5%) are higher than last year (7.2%).

Past Earnings Growth Analysis

Earnings Trend: HSBA's earnings have declined by 4.9% per year over the past 5 years.

Accelerating Growth: HSBA's earnings growth over the past year (65.6%) exceeds its 5-year average (-4.9% per year).

Earnings vs Industry: HSBA earnings growth over the past year (65.6%) exceeded the Banks industry 8%.

Return on Equity

High ROE: HSBA's Return on Equity (3.9%) is considered low.

Financial Health

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

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: HSBA's Assets to Equity ratio (14.2x) is moderate.

Allowance for Bad Loans: HSBA has a low allowance for bad loans (70%).

Low Risk Liabilities: 63% of HSBA's liabilities are made up of primarily low risk sources of funding.

Loan Level: HSBA has an appropriate level of Loans to Assets ratio (38%).

Low Risk Deposits: HSBA's Loans to Deposits ratio (65%) is appropriate.

Level of Bad Loans: HSBA has an appropriate level of bad loans (1.7%).


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HSBA's dividend (2.53%) is higher than the bottom 25% of dividend payers in the UK market (1.29%).

High Dividend: HSBA's dividend (2.53%) is low compared to the top 25% of dividend payers in the UK market (4.07%).

Stability and Growth of Payments

Stable Dividend: HSBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: HSBA's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), HSBA's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: HSBA's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Noel Quinn (58 yo)





Mr. Noel P. Quinn has been Group Chief Executive Officer of HSBC Holdings Plc since March 17, 2020 and serves as its Member of Group Management Board. He has been Executive Director of HSBC Holdings Plc si...

CEO Compensation Analysis

Compensation vs Market: Noel's total compensation ($USD5.67M) is above average for companies of similar size in the UK market ($USD3.55M).

Compensation vs Earnings: Noel's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: HSBA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: HSBA's board of directors are considered experienced (4.4 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: HSBA insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

HSBC Holdings plc's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: HSBC Holdings plc
  • Ticker: HSBA
  • Exchange: LSE
  • Founded: 1865
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£86.340b
  • Shares outstanding: 20.24b
  • Website:

Number of Employees


  • HSBC Holdings plc
  • 8 Canada Square
  • London
  • Greater London
  • E14 5HQ
  • United Kingdom



HSBC Holdings plc provides banking and financial products and services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 22:55
End of Day Share Price2021/06/21 00:00
Annual Earnings2020/12/31

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.