LSE:HSBA

Stock Analysis Report

Executive Summary

HSBC Holdings plc provides banking and financial products and services.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

1.4%

HSBA

6.3%

GB Banks

1.7%

GB Market


1 Year Return

-1.9%

HSBA

-1.0%

GB Banks

2.9%

GB Market

Return vs Industry: HSBA matched the UK Banks industry which returned -1% over the past year.

Return vs Market: HSBA underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

HSBAIndustryMarket
7 Day1.4%6.3%1.7%
30 Day-0.9%3.5%-0.7%
90 Day-8.5%-4.0%-1.8%
1 Year4.7%-1.9%5.2%-1.0%8.0%2.9%
3 Year16.2%-2.4%11.5%-2.4%18.2%3.8%
5 Year30.4%-4.1%1.3%-18.4%35.6%6.1%

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

Valuation

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

11.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HSBA (£6.06) is trading above our estimate of fair value (£3.84)

Significantly Undervalued: HSBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HSBA is poor value based on its PE Ratio (11.2x) compared to the Banks industry average (9x).

PE vs Market: HSBA is good value based on its PE Ratio (11.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HSBA is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: HSBA is overvalued based on its PB Ratio (0.9x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is HSBC Holdings forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBA's forecast earnings growth (2.6% per year) is above the savings rate (1.2%).

Earnings vs Market: HSBA's earnings (2.6% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: HSBA's revenue (2.7% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: HSBA's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HSBA's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has HSBC Holdings performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSBA's earnings have declined by -7.2% per year over the past 5 years.

Accelerating Growth: HSBA's earnings growth over the past year (41.4%) exceeds its 5-year average (-7.2% per year).

Earnings vs Industry: HSBA earnings growth over the past year (41.4%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: HSBA's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: HSBA has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate HSBA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: HSBA has a low level of unsold assets or inventory.

Debt Coverage by Assets: HSBA's debt is covered by short term assets (assets are 1.528050x debt).


Financial Institutions Analysis

Asset Level: HSBA's level of assets compared to its equity is moderate.

Allowance for Bad Loans: HSBA has a low allowance for bad loans.

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

Loan Level: HSBA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HSBA's loans are broadly funded by customer deposits.

Level of Bad Loans: HSBA has an appropriate level of bad loans (1.17%)


Next Steps

Dividend

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

6.54%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.0%markettop25%5.4%industryaverage5.7%forecastin3Years6.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HSBA's dividend (6.54%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: HSBA's dividend (6.54%) is in the top 25% of dividend payers in the UK market (5.41%)

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 (73%), 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 covered by earnings (65.4% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Noel Quinn (57yo)

0.2yrs

Tenure

0

Mr. Noel P. Quinn has been Group Chief Executive Officer of HSBC Holdings Plc since October 2019 and its Director since August 5, 2019 and also had been its Interim Group Chief Executive Officer since Augu ...


Management Age and Tenure

4.8yrs

Average Tenure

55yo

Average Age

Experienced Management: HSBA's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

60yo

Average Age

Experienced Board: HSBA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$602,695,91816 Oct 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares102,030,260
Max PriceUS$5.91
BuyUS$471,355,36703 Oct 19
BlackRock, Inc.
EntityCompany
Shares75,575,622
Max PriceUS$6.24
BuyUS$34,46215 Aug 19
Noel Quinn
EntityIndividual
Role
Chief Executive Officer
Group CEO & Executive Director
Shares5,066
Max PriceUS$6.80
BuyUS$33610 Jul 19
Heidi Miller
EntityIndividual
Shares50
Max PriceUS$6.72
BuyUS$127,11609 Jul 19
Tung Shun Wong
EntityIndividual
Role
Unit Board Member
Member of the Group Management Board
Shares18,981
Max PriceUS$6.70
SellUS$26,17431 May 19
Ewen Stevenson
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares39,667
Max PriceUS$0.66
BuyUS$2,90711 Apr 19
Henri René Marie de la Croix de Castries
EntityIndividual
Shares460
Max PriceUS$6.32
SellUS$916,55620 Mar 19
Menasey Moses
EntityIndividual
Role
Member of the Board of Directors
Group Chief Risk Officer
Shares146,649
Max PriceUS$6.25
SellUS$627,85620 Mar 19
Samir Assaf
EntityIndividual
Role
Member of Management Board
CEO of Global Banking & Markets Business and Member of the Group Management Board
Shares100,457
Max PriceUS$6.25
BuyUS$64,24128 Feb 19
Jackson Tai
EntityIndividual
Shares10,440
Max PriceUS$6.15
SellUS$390,82321 Feb 19
Samir Assaf
EntityIndividual
Role
Member of Management Board
CEO of Global Banking & Markets Business and Member of the Group Management Board
Shares60,356
Max PriceUS$6.48
BuyUS$645,34021 Feb 19
Ewen Stevenson
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares100,000
Max PriceUS$6.45
BuyUS$31,28611 Jan 19
John Flint
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares4,853
Max PriceUS$6.45
SellUS$482,49605 Dec 18
Iain Mackay
EntityIndividual
Shares71,587
Max PriceUS$6.74
BuyUS$34,421,92702 Nov 18
Pin An Trust
EntityCompany
Shares5,375,600
Max PriceUS$6.40

Ownership Breakdown


Management Team

  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.8yrs
  • Samir Assaf (59yo)

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

    • Tenure: 0yrs
  • Peter Wong (68yo)

    Member of the Group Management Board

    • Tenure: 0yrs
  • Menasey Moses (61yo)

    Group Chief Risk Officer

    • Tenure: 5.8yrs
    • Compensation: US$3.96m
  • Noel Quinn (57yo)

    Group CEO & Executive Director

    • Tenure: 0.2yrs
  • John Flint (50yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$4.75m
  • António P. Simões (44yo)

    Chief Executive of Global Private Banking & Member of Group Management Board

    • Tenure: 0yrs
  • Stuart Levey (55yo)

    Chief Legal Officer & Member of the Group Management Board

    • Tenure: 7.8yrs
  • Andy Maguire (52yo)

    Chairman of Advisory Board

    • Tenure: 2.8yrs
  • Manveen Kaur (55yo)

    Head of Wholesale Market & Credit Risk

    • Tenure: 6.5yrs

Board Members

  • Jon Symonds (60yo)

    Deputy Group Chairman & Senior Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$654.00k
  • Mark Tucker (62yo)

    Non-Executive Group Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$1.60m
  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.8yrs
  • Digby Jones (63yo)

    Head of International Business Advisory Board

    • Tenure: 0yrs
  • Peter Wong (68yo)

    Member of the Group Management Board

    • Tenure: 0yrs
  • Menasey Moses (61yo)

    Group Chief Risk Officer

    • Tenure: 5.8yrs
    • Compensation: US$3.96m
  • Pauline Françoise van der Meer Mohr (59yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$256.00k
  • Paulo Cesar Torre Maia (60yo)

    Chief Executive Officer of Latin America

    • Tenure: 3.6yrs
  • Noel Quinn (57yo)

    Group CEO & Executive Director

    • Tenure: 0.2yrs
  • Andy Maguire (52yo)

    Chairman of Advisory Board

    • Tenure: 2.8yrs

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£122.512b
  • Shares outstanding: 20.20b
  • Website: https://www.hsbc.com

Number of Employees


Location

  • HSBC Holdings plc
  • Level 2
  • 8 Canada Square
  • London
  • Greater London
  • E14 5HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBC1XTRA (XETRA Trading Platform)YesOrdinary Shares USD 0.50DEEURApr 1991
5SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary Shares USD 0.50HKHKDApr 1991
HSBALSE (London Stock Exchange)YesOrdinary Shares USD 0.50GBGBPApr 1991
5SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary Shares USD 0.50HKHKDApr 1991
HSBC.BHBER (The Bermuda Stock Exchange)YesOrdinary Shares USD 0.50BMUSDApr 1991
HSBENXTPA (Euronext Paris)YesOrdinary Shares USD 0.50FREURApr 1991
5SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary Shares USD 0.50HKHKDApr 1991
HBCY.FOTCPK (Pink Sheets LLC)YesOrdinary Shares USD 0.50USUSDApr 1991
HSBPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Shares USD 0.50GBEURApr 1991
HBC1DB (Deutsche Boerse AG)YesOrdinary Shares USD 0.50DEEURApr 1991
HSBALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Shares USD 0.50GBGBPApr 1991
HBC2DB (Deutsche Boerse AG)ADR EACH REPR 5 ORD USD0.50DEEURApr 1991
HBC NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 5 ORD USD0.50MXMXNApr 1991
HSBCNYSE (New York Stock Exchange)ADR EACH REPR 5 ORD USD0.50USUSDApr 1991
HSEA CLNYSE (New York Stock Exchange)SUB CAP 8.125%USUSDApr 2008

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:42
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.