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HSBC Holdings Plc (HSBC)
NYSE:HSBC
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HSBC Holdings
(NYSE:HSBC)
80Outperform
HSBC Holdings (HSBC) vs. S&P 500 (SPY)
Market Cap
$206.83B
Dividend Yield5.57%
Average Volume (3M)2.29M
Price to Earnings (P/E)10.9
Beta (1Y)0.61
Revenue Growth-1.91%
EPS Growth-6.79%
CountryUS
Employees211,940
SectorFinancial
Sector Strength85
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.95
Shares Outstanding3,524,961,700
10 Day Avg. Volume1,474,696
30 Day Avg. Volume2,289,589
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)1.06
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.26
Enterprise Value/Revenue-0.20
Enterprise Value/Gross Profit-0.86
Enterprise Value/Ebitda-31.87
Forecast
1Y Price Target
$69.00Price Target Upside17.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
HSBC Holdings Business Overview & Revenue Model
Company DescriptionHSBC Holdings plc (HSBC) is a leading global financial services organization headquartered in London, United Kingdom. The company operates in several sectors including retail banking and wealth management, commercial banking, global banking and markets, and global private banking. HSBC provides a range of financial products and services such as personal banking, credit cards, loans, mortgages, insurance, investment banking, and asset management to individuals, corporations, governments, and institutions worldwide.
How the Company Makes MoneyHSBC makes money primarily through interest income from its wide range of lending activities, including personal loans, mortgages, and corporate loans. Additionally, the bank generates revenue from fees and commissions charged on various services such as wealth management, investment banking, and transaction processing. The bank also earns from trading and investment activities within its Global Banking and Markets division. Key revenue streams include net interest income, net fee income, and trading income. Significant partnerships with corporate clients and financial institutions, along with strategic geographical diversification, contribute to HSBC's earnings. The bank's global presence in both established and emerging markets allows it to capture diverse revenue opportunities across different economic cycles.
HSBC Holdings Financial Statement Overview
Summary
HSBC exhibits strong financial health with consistent revenue growth, effective cash flow management, and a zero debt position in 2024. However, there is room for improvement in operational efficiency, as indicated by the slight decrease in return on equity.Income Statement
HSBC has demonstrated a strong income statement performance with consistent revenue growth, particularly from 2023 to 2024, showing a growth rate of 7.28%. The net profit margin improved slightly to 35.45% in 2024 from 37.34% in 2023, indicating efficient cost management and profitability. However, the absence of EBIT and EBITDA margins in 2024 suggests a potential need for detailed operational cost analysis.85
Very Positive
Balance Sheet
The balance sheet reflects solid financial stability with zero total debt in 2024, enhancing the debt-to-equity ratio. HSBC's equity ratio remained strong, maintaining investor confidence. However, the return on equity slightly decreased to 12.96% in 2024 from 12.70% in 2023, indicating a slight dip in efficiency in generating returns on shareholder equity.78
Positive
Cash Flow
HSBC's cash flow analysis shows robust free cash flow growth of 73.34% from 2023 to 2024, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.72 in 2024 signifies effective cash management. However, the free cash flow to net income ratio slightly declined from 1.50 in 2023 to 2.56 in 2024, suggesting potential reinvestment or operational changes.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 66.98B | 67.40B | 63.02B | 67.01B | 64.24B | 63.22B | Gross Profit |
| 62.91B | 67.61B | 63.02B | 67.01B | 64.24B | 63.22B | EBIT |
| 29.29B | 34.46B | 26.11B | 39.34B | 18.13B | 7.91B | EBITDA |
| 146.00M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 23.14B | 23.98B | 23.53B | 15.56B | 13.92B | 5.23B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 275.94B | 284.51B | 307.03B | 350.05B | 407.15B | 308.57B | Total Assets |
| 3.00T | 3.02T | 3.04T | 2.97T | 2.96T | 2.98T | Total Debt |
| 101.44B | 0.00 | 235.16B | 100.44B | 99.04B | 117.44B | Net Debt |
| -174.50B | -284.51B | -299.57B | -233.86B | -308.11B | -191.13B | Total Liabilities |
| 2.80T | 2.82T | 2.85T | 2.77T | 99.04B | 117.44B | Stockholders Equity |
| 191.19B | 184.97B | 185.33B | 187.48B | 198.25B | 196.44B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 61.42B | 35.42B | 22.02B | 100.75B | 178.71B | Operating Cash Flow |
| 0.00 | 65.31B | 39.11B | 26.43B | 104.31B | 182.22B | Investing Cash Flow |
| 0.00 | -76.56B | -62.91B | -34.48B | 27.54B | -22.43B | Financing Cash Flow |
| 0.00 | -26.46B | -17.56B | -6.29B | -10.79B | -4.64B |
HSBC Holdings Technical Analysis
Positive
58.87
Price Trends
55.10
Positive
53.00
Positive
47.90
Positive
Market Momentum
1.27
Negative
66.16
Neutral
91.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSBC, the sentiment is Positive. The current price of 58.87 is above the 20-day moving average (MA) of 56.20, above the 50-day MA of 55.10, and above the 200-day MA of 47.90, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 66.16 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSBC.
HSBC Holdings Risk Analysis
HSBC Holdings disclosed 36 risk factors in its most recent earnings report. HSBC Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HSBC Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $743.57B | 13.13 | 17.25% | 1.89% | 12.48% | 23.05% | |
82 Outperform | $116.71B | 8.34 | 13.25% | 2.17% | 0.27% | 19.44% | |
80 Outperform | $206.83B | 10.87 | 10.30% | 5.57% | -1.91% | -6.79% | |
78 Outperform | $247.90B | 13.69 | 11.05% | 2.03% | 3.51% | 16.51% | |
73 Outperform | $336.60B | 13.34 | 9.46% | 2.28% | 8.23% | 16.15% | |
64 Neutral | $141.42B | 11.96 | 6.30% | 2.92% | 2.97% | 87.82% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
HSBC
HSBC Holdings
58.87
17.32
41.68%
BAC
Bank of America
44.69
6.81
17.98%
C
Citigroup
75.72
14.63
23.95%
JPM
JPMorgan Chase
267.56
76.41
39.97%
WFC
Wells Fargo
76.18
16.90
28.51%
SAN
Banco Santander SA
7.75
2.68
52.86%
HSBC Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 5.41%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong quarter with notable growth in profit and wealth segments, and effective capital return strategies. However, challenges due to macroeconomic uncertainties and potential impacts from tariffs slightly dampen the positive outlook.Q1-2025 Updates
Positive Updates
Strong Profit Growth
Profit before tax increased by 11% with an annualized return on tangible equity of 18.4%, excluding notable items.
Wealth Segment Expansion
Fifth consecutive quarter of double-digit growth in wealth, with $22 billion in net new invested assets and 300,000 new customers in Hong Kong.
Successful Capital Returns
Announcement of up to $3 billion share buyback and a $0.10 per share interim dividend.
Stable Credit Management
First quarter ECL charge was $0.9 billion, with credit risk metrics remaining stable.
Resilient Fee Income
Wholesale transaction banking up 13% year-on-year, driven by strong FX performance.
Negative Updates
Macroeconomic Uncertainty
External environment less favorable with uncertainty around trade policy affecting business confidence and investment.
Impact of Interest Rate Cuts
Banking NII run rate remained stable despite the impact of interest rate cuts.
Potential Impact of Tariffs
Modeled scenarios indicate a low single-digit percentage impact on revenues in a plausible downside tariff scenario.
Hong Kong and China Economic Concerns
Muted loan demand with concerns over Hong Kong CRE and potential economic impact from tariffs.
Company Guidance
In the first quarter of 2025, HSBC Holdings plc reported a strong performance with profit before tax increasing by 11% and an annualized return on tangible equity of 18.4%, excluding notable items. The bank attracted $22 billion in net new invested assets and gained 300,000 new customers in Hong Kong. Revenue reached $17.7 billion, up $1.1 billion from the previous year, driven by higher client activity in wealth, FX, and trading businesses. The bank maintained stable credit metrics with an ECL charge equivalent to 37 basis points of loans and advances. HSBC announced a $3 billion share buyback and a $0.10 per share interim dividend, maintaining its CET1 ratio at 14.7%. The bank remains committed to a mid-teens return on tangible equity for 2025-2027, despite uncertainties in the macroeconomic environment, with a strong balance sheet supported by resilient recurring fee income and a high-quality credit portfolio.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.