NYSE:HSBC

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

-4.4%

NYSE:HSBC

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-19.6%

NYSE:HSBC

-14.2%

US Banks

-0.4%

US Market

HSBC underperformed the Banks industry which returned -16.1% over the past year.

HSBC underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

HSBCIndustryMarket
7 Day-4.4%-2.6%-1.0%
30 Day-12.4%-5.5%-3.3%
90 Day-13.2%-3.5%0.4%
1 Year-14.4%-19.6%-11.8%-14.2%1.8%-0.4%
3 Year20.7%1.4%42.2%32.4%39.4%30.4%
5 Year-8.1%-32.2%53.3%36.7%54.2%37.1%

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?

10.38x

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 good value based on earnings compared to the US Banks industry average.

HSBC Holdings is good value based on earnings compared to the United States of America 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 good value based on assets compared to the US 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 18 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HSBC Holdings's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

HSBC Holdings's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

HSBC Holdings's revenue growth is positive but not above the United States of America market average.

HSBC Holdings's earnings growth is positive but not above the United States of America market average.

HSBC Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


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 US Banks industry average in the past year (41.4% vs 33.2%).


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 less efficiently than the US 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


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?

7.04%

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 States of America (1.5%).

HSBC Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.9%).

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 (1.6x 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?

6.3yrs

Average management tenure


CEO

Noel Quinn (57yo)

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

6.3yrs

Average Tenure

56yo

Average Age

The average tenure for the HSBC Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.6yrs

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, but not in substantial volumes.


Recent Insider Transactions

BuyUS$42009 Jul 19
Heidi Miller
EntityIndividual
Shares10
Max PriceUS$42.04

Ownership Breakdown


Management Team

  • John Flint (50yo)

    Executive Officer

    • Compensation: $4.75m
  • Peter Wong (68yo)

    Member of the Group Management Board

  • Menasey Moses (61yo)

    Group Chief Risk Officer

    • Tenure: 8.7yrs
    • Compensation: $3.96m
  • Noel Quinn (57yo)

    Interim Group Chief Executive & Executive Director

  • Stuart Levey (55yo)

    Chief Legal Officer & Member of the Group Management Board

    • Tenure: 7.6yrs
  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.6yrs
  • Samir Assaf (59yo)

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

  • António P. Simões (44yo)

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

  • Manveen Kaur (55yo)

    Head of Wholesale Market & Credit Risk

    • Tenure: 6.3yrs
  • Pat Burke (57yo)

    Member of the Group Management Board & Group Managing Director

    • Tenure: 4.0yrs

Board Members

  • Paulo Cesar Torre Maia (60yo)

    Chief Executive Officer of Latin America

    • Tenure: 3.4yrs
  • Peter Wong (68yo)

    Member of the Group Management Board

  • Mark Tucker (62yo)

    Non-Executive Group Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: $1.60m
  • Pauline Françoise van der Meer Mohr (59yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: $256.00k
  • Menasey Moses (61yo)

    Group Chief Risk Officer

    • Tenure: 5.6yrs
    • Compensation: $3.96m
  • Noel Quinn (57yo)

    Interim Group Chief Executive & Executive Director

  • Ewen Stevenson (53yo)

    Group CFO & Executive Director

    • Tenure: 0.6yrs
  • Digby Jones (63yo)

    Head of International Business Advisory Board

  • Jon Symonds (60yo)

    Deputy Group Chairman & Senior Independent Non-Executive Director

    • Tenure: 1.0yrs
    • Compensation: $654.00k
  • Andy Maguire (52yo)

    Chairman of Advisory Board

    • Tenure: 2.6yrs

Company Information

HSBC Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HSBC Holdings plc
  • Ticker: HSBC
  • Exchange: NYSE
  • Founded: 1865
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: UK£120.593b
  • Listing Market Cap: UK£146.479b
  • Shares outstanding: 20.19b
  • Website: Click here

Number of Employees


Location

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

Listings

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

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 Analysis2019/08/16 23:37
End of Day Share Price2019/08/16 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.