| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 3/6 |
HSBA Overview
HSBC Holdings plc provides banking and financial services worldwide.
HSBC Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£3.76 |
| 52 Week High | UK£2.82 |
| 52 Week Low | UK£4.63 |
| Beta | 0.63 |
| 1 Month Change | -5.07% |
| 3 Month Change | -11.84% |
| 1 Year Change | 23.70% |
| 3 Year Change | -44.73% |
| 5 Year Change | -34.52% |
| Change since IPO | 509.81% |
Recent News & Updates
Shareholder Returns
| HSBA | GB Banks | GB Market | |
|---|---|---|---|
| 7D | 0.2% | 1.5% | -0.8% |
| 1Y | 23.7% | 56.5% | 19.9% |
Return vs Industry: HSBA underperformed the UK Banks industry which returned 56.5% over the past year.
Return vs Market: HSBA exceeded the UK Market which returned 19.2% over the past year.
Price Volatility
| HSBA volatility | |
|---|---|
| HSBA Beta | 0.63 |
| Industry Beta | 1.18 |
| Market Beta | 1 |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1865 | 222,550 | Noel Quinn | https://www.hsbc.com |
HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking products and services, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services for ultra high net worth individuals; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.
Valuation
Is HSBC Holdings undervalued compared to its fair value and its price relative to the market?
38.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSBA (£3.76) is trading below our estimate of fair value (£6.15)
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 (11.4x) compared to the UK Banks industry average (6.8x).
PE vs Market: HSBA is good value based on its PE Ratio (11.4x) compared to the UK market (23.5x).
Price to Earnings Growth Ratio
PEG Ratio: HSBA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: HSBA's PB Ratio (0.6x) 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?
12.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSBA's forecast earnings growth (12.1% per year) is above the savings rate (0.9%).
Earnings vs Market: HSBA's earnings (12.1% per year) are forecast to grow slower than the UK market (13.3% 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% 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 (7.9%).
Past Performance
How has HSBC Holdings performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSBA has high quality earnings.
Growing Profit Margin: HSBA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: HSBA's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: HSBA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: HSBA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (38.2%).
Return on Equity
High ROE: HSBA's Return on Equity (5.5%) 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 (14.4x) is moderate.
Allowance for Bad Loans: HSBA has a low allowance for bad loans (67%).
Low Risk Liabilities: 64% 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 (39%).
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%).
Dividend
What is HSBC Holdings's current dividend yield, its reliability and sustainability?
2.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HSBA's dividend (2.71%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: HSBA's dividend (2.71%) is low compared to the top 25% of dividend payers in the UK market (3.92%).
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 reasonably low payout ratio (48.3%), HSBA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSBA's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Noel Quinn (59 yo)
2.08yrs
Tenure
US$5,671,454
Compensation
Mr. Noel P. Quinn has been Group Chief Executive Officer of HSBC Holdings Plc since March 17, 2020 and serves as its Member of Group Management Board. He has been Executive Director of HSBC Holdings Plc si...
CEO Compensation Analysis
Compensation vs Market: Noel's total compensation ($USD5.67M) is above average for companies of similar size in the UK market ($USD3.69M).
Compensation vs Earnings: Noel's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HSBA's management team is considered experienced (2.1 years average tenure).
Board Members
Experienced Board: HSBA's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 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£76.119b
- Shares outstanding: 20.24b
- Website: https://www.hsbc.com
Number of Employees
Location
- HSBC Holdings plc
- 8 Canada Square
- London
- Greater London
- E14 5HQ
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 17:33 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.