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

-1.6%

HSBA

0.4%

GB Banks

0.4%

GB Market


1 Year Return

-7.5%

HSBA

-11.0%

GB Banks

-0.9%

GB Market

HSBA outperformed the Banks industry which returned -11.3% over the past year.

HSBA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

HSBAIndustryMarket
7 Day-1.6%0.4%0.4%
30 Day3.2%5.9%4.4%
90 Day-5.2%-4.5%0.5%
1 Year-1.5%-7.5%-5.5%-11.0%3.9%-0.9%
3 Year27.0%6.7%12.8%-1.3%20.5%6.1%
5 Year29.0%-4.7%-3.5%-22.3%33.2%5.1%

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 based on future cash flows and its price relative to the stock market?

11.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

HSBC Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

HSBC Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

HSBC Holdings is overvalued based on earnings compared to the GB Banks industry average.

HSBC Holdings is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

HSBC Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

HSBC Holdings is overvalued based on assets compared to the GB Banks industry average.


Next Steps

Future Growth

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

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HSBC Holdings's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

HSBC Holdings's earnings are expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

HSBC Holdings's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

HSBC Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

HSBC Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

HSBC Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

HSBC Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

HSBC Holdings's 1-year earnings growth exceeds its 5-year average (41.4% vs -7.2%)

HSBC Holdings's earnings growth has exceeded the GB Banks industry average in the past year (41.4% vs 32.3%).


Return on Equity

HSBC Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HSBC Holdings used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if HSBC Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

HSBC Holdings has an acceptable proportion of non-loan assets held.

HSBC Holdings has a low allowance for bad loans.

HSBC Holdings's liabilities are made up of primarily low risk sources of funding.

HSBC Holdings's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at HSBC Holdings are broadly funded by customer deposits.

HSBC Holdings has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

6.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HSBC Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

HSBC Holdings's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Noel Quinn (57yo)

0.08yrs

Tenure

0

Mr. Noel P. Quinn has been Interim Group Chief Executive and Director of HSBC Holdings Plc since August 5, 2019. Mr. Quinn joined HSBC in 1992 when the Group acquired Midland Bank. Mr. Quinn serves as the  ...


Management Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

The tenure for the HSBC Holdings management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

The average tenure for the HSBC Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by HSBC Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$34,46215 Aug 19
Noel Quinn
EntityIndividual
Role
Chief Executive Officer
Interim Group Chief Executive & 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
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
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$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
BuyUS$3,25903 Oct 18
Jonathan Symonds
EntityIndividual
Role
Vice Chairman
Deputy Group Chairman & Senior Independent Non-Executive Director
Shares476
Max PriceUS$6.85
BuyUS$45,29001 Oct 18
Peter Boyles
EntityIndividual
Shares7,777
Max PriceUS$6.85
BuyUS$141,55101 Oct 18
Tung Shun Wong
EntityIndividual
Role
Unit Board Member
Member of the Group Management Board
Shares20,812
Max PriceUS$6.85
BuyUS$80,33301 Oct 18
Samir Assaf
EntityIndividual
Role
Member of Management Board
CEO of Global Banking & Markets Business and Member of the Group Management Board
Shares11,736
Max PriceUS$6.85
SellUS$673,00026 Sep 18
Peter Boyles
EntityIndividual
Shares100,000
Max PriceUS$6.73

Ownership Breakdown


Management Team

  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.7yrs
  • Pat Burke (57yo)

    Member of the Group Management Board & Group Managing Director

    • Tenure: 4.1yrs
  • 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: 5.7yrs
    • Compensation: US$3.96m
  • Noel Quinn (57yo)

    Interim Group Chief Executive & Executive Director

    • Tenure: 0.08yrs
  • John Flint (50yo)

    Executive Officer

    • Tenure: 0.08yrs
    • 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: 7.7yrs
  • Manveen Kaur (55yo)

    Head of Wholesale Market & Credit Risk

    • Tenure: 6.4yrs

Board Members

  • Jon Symonds (60yo)

    Deputy Group Chairman & Senior Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: US$654.00k
  • Mark Tucker (62yo)

    Non-Executive Group Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$1.60m
  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.7yrs
  • 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: 5.7yrs
    • Compensation: US$3.96m
  • Pauline Françoise van der Meer Mohr (59yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$256.00k
  • Paulo Cesar Torre Maia (60yo)

    Chief Executive Officer of Latin America

    • Tenure: 3.5yrs
  • Noel Quinn (57yo)

    Interim Group Chief Executive & Executive Director

    • Tenure: 0.08yrs
  • Andy Maguire (52yo)

    Chairman of Advisory Board

    • Tenure: 2.7yrs

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£123.864b
  • Shares outstanding: 20.11b
  • 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
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)SPON ADR NEWDEEURApr 1991
HBC NBMV (Bolsa Mexicana de Valores)SPON ADR NEWMXMXNApr 1991
HSBCNYSE (New York Stock Exchange)SPON ADR NEWUSUSDApr 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 Analysis2019/09/19 20:45
End of Day Share Price2019/09/19 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.