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HSBA

HSBC Holdings LSE:HSBA Stock Report

Last Price

UK£4.67

Market Cap

UK£92.2b

7D

-8.4%

1Y

20.2%

Updated

02 Oct, 2022

Data

Company Financials +
HSBA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends3/6

HSBA Stock Overview

HSBC Holdings plc provides banking and financial services worldwide.

HSBC Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HSBC Holdings
Historical stock prices
Current Share PriceUK£4.67
52 Week HighUK£5.67
52 Week LowUK£3.82
Beta0.48
1 Month Change-12.64%
3 Month Change-13.42%
1 Year Change20.24%
3 Year Change-22.36%
5 Year Change-38.26%
Change since IPO657.79%

Recent News & Updates

Shareholder Returns

HSBAGB BanksGB Market
7D-8.4%-7.7%-1.8%
1Y20.2%-1.4%-15.2%

Return vs Industry: HSBA exceeded the UK Banks industry which returned -1.4% over the past year.

Return vs Market: HSBA exceeded the UK Market which returned -15.1% over the past year.

Price Volatility

Is HSBA's price volatile compared to industry and market?
HSBA volatility
HSBA Average Weekly Movement3.7%
Banks Industry Average Movement5.0%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.9%
10% least volatile stocks in GB Market2.9%

Stable Share Price: HSBA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HSBA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1865218,866Noel Quinnhttps://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 and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.

HSBC Holdings Fundamentals Summary

How do HSBC Holdings's earnings and revenue compare to its market cap?
HSBA fundamental statistics
Market CapUK£92.22b
Earnings (TTM)UK£12.22b
Revenue (TTM)UK£43.33b

7.5x

P/E Ratio

0.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSBA income statement (TTM)
RevenueUS$48.29b
Cost of RevenueUS$0
Gross ProfitUS$48.29b
Other ExpensesUS$34.67b
EarningsUS$13.62b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)0.69
Gross Margin100.00%
Net Profit Margin28.21%
Debt/Equity Ratio313.1%

How did HSBA perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HSBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HSBA?

Other financial metrics that can be useful for relative valuation.

HSBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does HSBA's PE Ratio compare to its peers?

HSBA PE Ratio vs Peers
The above table shows the PE ratio for HSBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7x
LLOY Lloyds Banking Group
6.5x2.2%UK£28.1b
NWG NatWest Group
8x5.4%UK£21.7b
BARC Barclays
4.6x4.3%UK£22.9b
STAN Standard Chartered
8.9x11.3%UK£16.5b
HSBA HSBC Holdings
7.5x16.7%UK£92.2b

Price-To-Earnings vs Peers: HSBA is expensive based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (7x).


Price to Earnings Ratio vs Industry

How does HSBA's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: HSBA is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Banks industry average (8.5x)


Price to Earnings Ratio vs Fair Ratio

What is HSBA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HSBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: HSBA is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).


Share Price vs Fair Value

What is the Fair Price of HSBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HSBA (£4.67) is trading below our estimate of fair value (£13.57)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBA's forecast earnings growth (16.7% per year) is above the savings rate (0.9%).

Earnings vs Market: HSBA's earnings (16.7% per year) are forecast to grow faster than the UK market (8.9% per year).

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

Revenue vs Market: HSBA's revenue (7.1% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: HSBA's revenue (7.1% 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 (10.9%).


Discover growth companies

Past Performance

How has HSBC Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSBA has high quality earnings.

Growing Profit Margin: HSBA's current net profit margins (28.2%) are higher than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: HSBA's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: HSBA's earnings growth over the past year (48.1%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: HSBA earnings growth over the past year (48.1%) exceeded the Banks industry 43.6%.


Return on Equity

High ROE: HSBA's Return on Equity (7.9%) is considered low.


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Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HSBA's Assets to Equity ratio (15.2x) is moderate.

Allowance for Bad Loans: HSBA has a low allowance for bad loans (56%).

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 (64%) is appropriate.

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


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.19%

Current Dividend Yield

Dividend Yield vs Market

HSBC Holdings Dividend Yield vs Market
How does HSBC Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (HSBC Holdings)5.2%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Banks)5.0%
Analyst forecast in 3 Years (HSBC Holdings)8.0%

Notable Dividend: HSBA's dividend (5.19%) is higher than the bottom 25% of dividend payers in the UK market (2.12%).

High Dividend: HSBA's dividend (5.19%) is low compared to the top 25% of dividend payers in the UK market (6.11%).


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

Earnings Coverage: With its reasonably low payout ratio (39.8%), 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 covered by earnings (50.1% payout ratio).


Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure


CEO

Noel Quinn (60 yo)

3.17yrs

Tenure

US$6,628,121

Compensation

Mr. Noel Paul 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...


CEO Compensation Analysis

Noel Quinn's Compensation vs HSBC Holdings Earnings
How has Noel Quinn's remuneration changed compared to HSBC Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$14b

Mar 31 2022n/an/a

US$12b

Dec 31 2021US$7mUS$2m

US$13b

Sep 30 2021n/an/a

US$11b

Jun 30 2021n/an/a

US$9b

Mar 31 2021n/an/a

US$6b

Dec 31 2020US$6mUS$2m

US$4b

Sep 30 2020n/an/a

-US$2b

Jun 30 2020n/an/a

-US$561m

Mar 31 2020n/an/a

US$4b

Dec 31 2019US$4mUS$666k

US$6b

Compensation vs Market: Noel's total compensation ($USD6.63M) is about average for companies of similar size in the UK market ($USD5.55M).

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 (3.1 years average tenure).


Board Members

Experienced Board: HSBA's board of directors are considered experienced (5.8 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

LSE:HSBA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
17 May 22BuyUK£75,150Dame Carolyn FairbairnIndividual15,000UK£5.01
12 May 22BuyUK£72,705Geraldine BuckinghamIndividual15,000UK£4.85
12 May 22BuyUK£6,133Geraldine BuckinghamIndividual15,000UK£0.41
28 Apr 22BuyUK£5,135Noel QuinnIndividual1,011UK£5.08
23 Mar 22BuyUK£76,469Xiao Ying DuanIndividual15,000UK£5.10

Ownership Breakdown

What is the ownership structure of HSBA?
Owner TypeNumber of SharesOwnership Percentage
Public Companies00%
Individual Insiders8,423,9980.04%
State or Government23,941,9200.1%
Private Companies35,336,7910.2%
Employee Share Scheme127,969,6250.6%
General Public9,625,608,25848.8%
Institutions9,913,634,56550.2%

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


Top Shareholders

Top 25 shareholders own 38.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.39%
Ping'an Assets Management Co., Ltd.
1,655,479,531$7.7b0%54.37%
7.93%
BlackRock, Inc.
1,564,306,093$7.3b-8.09%0.2%
4.37%
The Vanguard Group, Inc.
861,692,689$4.0b2.38%0.11%
2.69%
Norges Bank Investment Management
530,026,865$2.5b-8.7%0.39%
2.07%
Legal & General Investment Management Limited
407,883,533$1.9b0.63%0.65%
1.64%
State Street Global Advisors, Inc.
323,894,405$1.5b-4.86%0.1%
1.13%
HSBC Global Asset Management (UK) Limited
223,379,120$1.0b1.26%0.98%
1.11%
UBS Asset Management
218,791,208$1.0b9.64%0.22%
0.83%
Ignis Investment Services Limited
164,542,662$768.9m-2.04%3.35%
0.65%
HSBC Holdings General Employee Benefit Trust
127,969,625$598.0m30.02%no data
0.65%
Northern Trust Global Investments
127,671,989$596.6m-2.37%0.15%
0.64%
Schroder Investment Management Limited
126,379,001$590.6m-6.75%0.53%
0.59%
FMR LLC
117,261,226$548.0m2.62%0.06%
0.54%
Geode Capital Management, LLC
105,956,203$495.1m0.4%0.07%
0.52%
Societe Generale Group, Banking Investments
102,270,171$477.9m78.73%5.29%
0.51%
Amundi Asset Management
100,852,698$471.3m16.53%0.16%
0.51%
Aviva Investors Global Services Limited
99,691,258$465.9m10.14%1.04%
0.5%
BNY Mellon Asset Management
97,826,334$457.1m2.77%0.12%
0.48%
Royal London Asset Management Limited
95,287,680$445.3m3.07%0.96%
0.47%
abrdn plc
93,321,822$436.1m-49.01%0.51%
0.46%
BNP Paribas, Private & Investment Banking Investments
90,626,190$423.5m138.19%3.28%
0.44%
SAFE Investment Company Limited
86,784,887$405.5m5.91%4.61%
0.43%
GQG Partners LLC
85,544,312$399.7m105.77%0.68%
0.43%
Kuwait Investment Authority
85,402,439$399.1m14.17%1.76%
0.4%
J.P. Morgan Asset Management, Inc.
79,768,729$372.8m1.25%0.08%

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
  • Implied Market Cap: UK£92.222b
  • Shares outstanding: 19.74b
  • Website: https://www.hsbc.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBCY.FOTCPK (Pink Sheets LLC)YesOrdinary Shares USD 0.50USUSDApr 1991
HSBALSE (London Stock Exchange)YesOrdinary Shares USD 0.50GBGBPApr 1991
HSBC.BHBER (The Bermuda Stock Exchange)YesOrdinary Shares USD 0.50BMUSDApr 1991
5SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary Shares USD 0.50HKHKDApr 1991
HBC1XTRA (XETRA Trading Platform)YesOrdinary Shares USD 0.50DEEURApr 1991
HBC1DB (Deutsche Boerse AG)YesOrdinary Shares USD 0.50DEEURApr 1991
HSBALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Shares USD 0.50GBGBPApr 1991
5SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary Shares USD 0.50HKHKDApr 1991
5SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary Shares USD 0.50HKHKDApr 1991
HSBCNYSE (New York Stock Exchange)ADR EACH REPR 5 ORD USD0.50USUSDApr 1991
HBC NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 5 ORD USD0.50MXMXNApr 1991
HBC2DB (Deutsche Boerse AG)ADR EACH REPR 5 ORD USD0.50DEEURApr 1991
HSBCBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 0.5 ADRARARSJul 2001
H1SB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 ADRBRBRLOct 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.