LSE:HSBA

Stock Analysis Report

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Executive Summary

HSBC Holdings plc provides banking and financial products and services worldwide. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

4.0%

HSBA

4.3%

GB Banks

1.1%

GB Market


1 Year Return

-51.8%

HSBA

-46.9%

GB Banks

-15.4%

GB Market

Return vs Industry: HSBA underperformed the UK Banks industry which returned -46.3% over the past year.

Return vs Market: HSBA underperformed the UK Market which returned -15.5% over the past year.


Shareholder returns

HSBAIndustryMarket
7 Day4.0%4.3%1.1%
30 Day-9.6%-9.3%-2.2%
90 Day-19.8%-16.2%-3.0%
1 Year-51.2%-51.8%-46.4%-46.9%-12.2%-15.4%
3 Year-54.6%-60.1%-52.6%-57.4%-8.6%-19.5%
5 Year-25.6%-42.8%-43.9%-53.3%16.0%-9.7%

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?

0.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HSBA (£2.99) is trading above our estimate of fair value (£1.7)

Significantly Below Fair Value: HSBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HSBA is unprofitable, so we can't compare its PE Ratio to the GB Banks industry average.

PE vs Market: HSBA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HSBA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HSBA's PB Ratio (0.5x) is in line with the GB Banks industry average.


Next Steps

Future Growth

How is HSBC Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

42.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: HSBA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HSBA's is expected to become profitable in the next 3 years.

Revenue vs Market: HSBA's revenue (2% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: HSBA's revenue (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 (7.4%).


Next Steps

Past Performance

How has HSBC Holdings performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSBA is currently unprofitable.

Growing Profit Margin: HSBA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HSBA is unprofitable, and losses have increased over the past 5 years at a rate of 6.3% per year.

Accelerating Growth: Unable to compare HSBA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HSBA is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-29.8%).


Return on Equity

High ROE: HSBA has a negative Return on Equity (0.97%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: HSBA's Assets to Equity ratio (15x) is moderate.

Allowance for Bad Loans: HSBA has a low allowance for bad loans (76%).

Low Risk Liabilities: 59% 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 (37%).

Low Risk Deposits: HSBA's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: HSBA has an appropriate level of bad loans (1.6%).


Next Steps

Dividend

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

6.90%

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 recent payouts.

High Dividend: Unable to evaluate HSBA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

1.7yrs

Average management tenure


CEO

Noel Quinn (58 yo)

1.08yrs

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 ($USD4.62M) is about average for companies of similar size in the UK market ($USD5.06M).

Compensation vs Earnings: Insufficient data to compare Noel's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Noel Quinn
Group CEO1.08yrsUS$2.71m0.0034%
$ 2.1m
Ewen Stevenson
Group CFO1.67yrsUS$4.88m0.0046%
$ 2.8m
Tung Shun Wong
Dpty Chairman & CEO of The Hongkong and Shanghai Banking Corp Ltd and Member of the Group Mgt Boardno datano data0.011%
$ 6.5m
Samir Assaf
Chairman of Corporate and Institutional Banking & Member of the Group Management Boardno datano data0.0099%
$ 6.0m
Stuart Levey
Member of the Group Management Board8.67yrsno datano data
Manveen Kaur
Head of Wholesale Market & Credit Risk7.42yrsno datano data
Georges Elhedery
Co-CEO of Global Banking & Markets and Member of Management Board0.50yrno datano data
Stephen Moss
Regional CEO for Europeno datano datano data
Charlie Nunn
Head of Combined Wealth & Personal Banking and Member of Group Management Board2.67yrsno datano data
Colin Bell
Group Chief Compliance Officer & Member of the Group Management Boardno datano datano data
Ian C. Stuart
CEO of HSBC UK Bank plc & Member of Group Management Boardno datano datano data
Elaine Arden
Group Chief Human Resources Officer & Member of the Group Management Board1.67yrsno datano data

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: HSBA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Noel Quinn
Group CEO1.08yrsUS$2.71m0.0034%
$ 2.1m
Ewen Stevenson
Group CFO1.67yrsUS$4.88m0.0046%
$ 2.8m
Heidi Miller
Independent Non-Executive Director6yrsUS$627.00k0.00015%
$ 90.7k
Henri René Marie de la Croix de Castries
Independent Non-Executive Director4.5yrsUS$198.00k0.00010%
$ 60.5k
Mark Tucker
Non-Executive Group Chairman of the Board2.92yrsUS$1.73m0.0015%
$ 919.2k
David Nish
Senior Independent Non-Executive Director0.58yrUS$246.00k0.00025%
$ 151.2k
Yun-Lien Lee
Independent Non-Executive Director5.17yrsUS$457.00k0.000060%
$ 36.3k
Jackson Tai
Independent Non-Executive Director4yrsUS$455.00k0.00066%
$ 399.1k
Stuart Alan Rose
Member of European Advisory Council of Investment Banking Operationsno datano datano data
May-Lung Cha
Independent Non-Executive Director9.5yrsUS$298.00k0.000080%
$ 48.4k
Claudio Boada Pallerés
Member of Advisory Boardno datano datano data
Pauline Françoise van der Meer Mohr
Independent Non-Executive Director5yrsUS$273.00k0.000070%
$ 42.3k

4.3yrs

Average Tenure

66yo

Average Age

Experienced Board: HSBA's board of directors are considered experienced (4.3 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 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£60.477b
  • Shares outstanding: 20.26b
  • 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
HSBENXTPA (Euronext Paris)YesOrdinary Shares USD 0.50FREURApr 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
HSBPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Shares USD 0.50GBEURApr 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)SPON ADR NEWUSUSDApr 1991
HBC NBMV (Bolsa Mexicana de Valores)SPON ADR NEWMXMXNApr 1991
HBC2DB (Deutsche Boerse AG)SPON ADR NEWDEEURApr 1991
HBCBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REPR 1 ADRARARSJul 2001
HSEA CLNYSE (New York Stock Exchange)SUB CAP 8.125%USUSDApr 2008

Biography

HSBC Holdings plc provides banking and financial products and services worldwide. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Glob ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 21:10
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.