HSBC Holdings
Market Cap
UK£85.0b
Last Updated
2020/04/07 21:00 UTC
Data Sources
Company Financials +
Executive Summary
HSBC Holdings plc provides banking and financial products and services.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.6%
HSBA
-2.5%
GB Banks
1.7%
GB Market
1 Year Return
-36.0%
HSBA
-40.7%
GB Banks
-21.8%
GB Market
Return vs Industry: HSBA exceeded the UK Banks industry which returned -45.4% over the past year.
Return vs Market: HSBA underperformed the UK Market which returned -25.9% over the past year.
Shareholder returns
| HSBA | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.6% | -2.5% | 1.7% |
| 30 Day | -15.0% | -19.7% | -12.0% |
| 90 Day | -27.8% | -38.3% | -25.3% |
| 1 Year | -33.4%-36.0% | -38.6%-40.7% | -17.9%-21.8% |
| 3 Year | -25.9%-36.2% | -37.6%-44.4% | -11.8%-22.8% |
| 5 Year | -9.5%-31.9% | -38.5%-49.5% | 0.1%-22.4% |
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
2 months ago | Simply Wall St
Factors Income Investors Should Consider Before Adding HSBC Holdings plc (LON:HSBA) To Their Portfolio8 months ago | Simply Wall St
Is HSBC Holdings plc (LON:HSBA) A Risky Dividend Stock?9 months ago | Simply Wall St
Do HSBC Holdings's (LON:HSBA) Earnings Warrant Your Attention?Valuation
Is HSBC Holdings undervalued compared to its fair value and its price relative to the market?
20.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSBA (£3.97) is trading below our estimate of fair value (£5.6)
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 (16.4x) compared to the Banks industry average (4.9x).
PE vs Market: HSBA is poor value based on its PE Ratio (16.4x) compared to the UK market (12.3x).
Price to Earnings Growth Ratio
PEG Ratio: HSBA is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: HSBA is overvalued based on its PB Ratio (0.6x) compared to the GB Banks industry average (0.5x).
Next Steps
Future Growth
How is HSBC Holdings forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
21.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSBA's forecast earnings growth (21.2% per year) is above the savings rate (0.5%).
Earnings vs Market: HSBA's earnings (21.2% per year) are forecast to grow faster than the UK market (15.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HSBA's revenue (0.2% per year) is forecast to grow slower than the UK market (2.6% per year).
High Growth Revenue: HSBA's revenue (0.2% 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 (7.8%).
Next Steps
Past Performance
How has HSBC Holdings performed over the past 5 years?
-1.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSBA has a large one-off loss of $7.3B impacting its December 31 2019 financial results.
Growing Profit Margin: HSBA's current net profit margins (11.2%) are lower than last year (24.2%).
Past Earnings Growth Analysis
Earnings Trend: HSBA's earnings have declined by -1.8% per year over the past 5 years.
Accelerating Growth: HSBA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HSBA had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Banks industry average (26.6%).
Return on Equity
High ROE: HSBA's Return on Equity (4.5%) is considered low.
Next Steps
Financial Health
How is HSBC Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: HSBA's short term assets ($1,027.5B) do not cover its short term liabilities ($2,179.2B).
Long Term Liabilities: HSBA's short term assets ($1,027.5B) exceed its long term liabilities ($343.2B).
Debt to Equity History and Analysis
Debt Level: HSBA's debt to equity ratio (337.3%) is considered high.
Reducing Debt: HSBA's debt to equity ratio has increased from 320.5% to 337.3% over the past 5 years.
Debt Coverage: HSBA's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if HSBA's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is HSBC Holdings's current dividend yield, its reliability and sustainability?
8.82%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HSBA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate HSBA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HSBA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HSBA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: HSBA is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HSBA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Noel Quinn (57yo)
0.67
Tenure
US$2,713,392
Compensation
Mr. Noel P. Quinn serves as Group Chief Executive Officer of HSBC Holdings Plc since March 17, 2020 and serves as its Member of Group Management Board. Mr. Quinn served as Interim Group Chief Executive Off ...
CEO Compensation Analysis
Compensation vs Market: Noel's total compensation ($USD3.32M) is below average for companies of similar size in the UK market ($USD5.59M).
Compensation vs Earnings: Insufficient data to compare Noel's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 0.67yr | US$2.71m | 0.0054% $4.6m | |
| Group CFO | 1.25yrs | US$4.88m | 0.0042% $3.5m | |
| Dpty Chairman & CEO of The Hongkong and Shanghai Banking Corp Ltd and Member of the Group Mgt Board | no data | no data | 0.011% $9.1m | |
| Chairman of Corporate and Institutional Banking & Member of the Group Management Board | no data | no data | 0.0099% $8.4m | |
| CEO of Latin America & Member of the Group Management Board | 4.75yrs | no data | no data | |
| CEO of Global Private Banking & Member of Group Management Board | no data | no data | no data | |
| Chief Legal Officer & Member of the Group Management Board | 8.25yrs | no data | no data | |
| Head of Wholesale Market & Credit Risk | 7yrs | no data | no data | |
| Co-CEO of Global Banking & Markets and Member of Management Board | 0.083yr | no data | no data | |
| Chairman of Advisory Board & Member of Management Board | 3.25yrs | no data | no data |
4.7yrs
Average Tenure
55yo
Average Age
Experienced Management: HSBA's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 0.67yr | US$2.71m | 0.0054% $4.6m | |
| Group CFO | 1.25yrs | US$4.88m | 0.0042% $3.5m | |
| Chairman of Advisory Board & Member of Management Board | 3.25yrs | no data | no data | |
| Non-Executive Group Chairman of the Board | 2.5yrs | US$1.73m | 0.0015% $1.3m | |
| Senior Independent Non-Executive Director | 0.17yr | US$246.00k | 0.00025% $212.5k | |
| Independent Non-Executive Director | 3.58yrs | US$455.00k | 0.00033% $280.5k | |
| Member of European Advisory Council of Investment Banking Operations | no data | no data | no data | |
| Independent Non-Executive Director | 9.08yrs | US$298.00k | 0.000080% $68.0k | |
| Member of Advisory Board | no data | no data | no data | |
| Independent Non-Executive Director | 4.58yrs | US$273.00k | 0.000070% $59.5k |
2.9yrs
Average Tenure
59yo
Average Age
Experienced Board: HSBA's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
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£85.003b
- Shares outstanding: 20.26b
- Website: https://www.hsbc.com
Number of Employees
Location
- HSBC Holdings plc
- 8 Canada Square
- 42nd Floor
- London
- Greater London
- E14 5HQ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HBCY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares USD 0.50 | US | USD | Apr 1991 |
| HSBA | LSE (London Stock Exchange) | Yes | Ordinary Shares USD 0.50 | GB | GBP | Apr 1991 |
| HSBC.BH | BER (The Bermuda Stock Exchange) | Yes | Ordinary Shares USD 0.50 | BM | USD | Apr 1991 |
| HSB | ENXTPA (Euronext Paris) | Yes | Ordinary Shares USD 0.50 | FR | EUR | Apr 1991 |
| 5 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares USD 0.50 | HK | HKD | Apr 1991 |
| HBC1 | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares USD 0.50 | DE | EUR | Apr 1991 |
| HBC1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares USD 0.50 | DE | EUR | Apr 1991 |
| HSBAL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares USD 0.50 | GB | GBP | Apr 1991 |
| HSBP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares USD 0.50 | GB | EUR | Apr 1991 |
| 5 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares USD 0.50 | HK | HKD | Apr 1991 |
| 5 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares USD 0.50 | HK | HKD | Apr 1991 |
| HSBC | NYSE (New York Stock Exchange) | ADR EACH REPR 5 ORD USD0.50 | US | USD | Apr 1991 | |
| HBC N | BMV (Bolsa Mexicana de Valores) | ADR EACH REPR 5 ORD USD0.50 | MX | MXN | Apr 1991 | |
| HBC2 | DB (Deutsche Boerse AG) | ADR EACH REPR 5 ORD USD0.50 | DE | EUR | Apr 1991 | |
| HBC | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 2 REPR 1 ADR | AR | ARS | Jul 2001 | |
| HSEA CL | NYSE (New York Stock Exchange) | SUB CAP 8.125% | US | USD | Apr 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 Banking segments. The Retail Banking and Wealth Management segment offers personal banking products, such as current and savings accounts, mortgages and personal loans, credit cards, debit cards, and domestic and international payment services, as well as wealth management services, including insurance and investment products, global asset management services, and financial planning services. The Commercial Banking segment provides credit and lending, international trade and receivables finance, treasury management and liquidity solutions, commercial insurance, and investments to small and medium sized enterprises, mid-market enterprises, and corporates. This segment also offers foreign exchange products, raising capital on debt and equity markets, and advisory services. The Global Banking and Markets segment is involved in the provision of financing; advisory and transaction services, a markets business that provides services in credit, rates, foreign exchange, equities, money markets, and securities services; and investment activities. The Global Private Banking segment provides a range of services to high net worth individuals and families. The company has operations in 64 countries and territories located in Europe, Asia, North America, Latin America, the Middle East, and North Africa. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 21:00 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.