HSBC Holdings (HSBC) AI Stock Analysis

• Market Cap: $207.76B
• Dividend Yield: 3.33%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.59
• Revenue Growth: -1.91%
• EPS Growth: -6.79%
• Country: US
• Employees: 211,940
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Diversified
• EPS (TTM): 1.95
• Shares Outstanding: 3,505,780,300
• 10 Day Avg. Volume: 1,198,316
• 30 Day Avg. Volume: 1,304,720
• PEG Ratio: 1.45
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.08
• Enterprise Value/Market Cap: 3.65
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 6.00
• 1Y Price Target: $63.00
• Price Target Upside: 4.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ―

HSBC receives a strong overall score due to its robust financial performance, effective cash management, and positive technical indicators. The attractive valuation and high dividend yield further enhance its appeal. While the earnings call pointed to solid growth and capital management, macroeconomic uncertainties pose a moderate risk.

HSBC Holdings Business Overview & Revenue Model

Company Description

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. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

How the Company Makes Money

HSBC 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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
207.85B	143.29B	56.35B	76.17B	73.95B	77.46B
	Gross Profit
170.29B	67.40B	56.35B	53.72B	64.25B	63.28B
	EBIT
30.25B	32.31B	30.35B	17.06B	18.91B	8.78B
	EBITDA
30.75B	36.39B	33.81B	20.91B	23.19B	14.02B
	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
277.11B	284.51B	307.03B	350.05B	407.15B	308.57B
	Total Assets
2.98T	3.02T	3.04T	2.97T	2.96T	2.98T
	Total Debt
123.67B	0.00	235.16B	100.44B	99.04B	117.44B
	Net Debt
-163.42B	-284.51B	-299.57B	-233.86B	-308.11B	-191.13B
	Total Liabilities
2.78T	2.82T	2.85T	2.77T	99.04B	117.44B
	Stockholders Equity
183.29B	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

• Technical Analysis Sentiment: Positive
• Last Price: 60.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 60.17 is above the 20-day moving average (MA) of 59.48, above the 50-day MA of 56.07, and above the 200-day MA of 49.75, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSBC.

HSBC Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAC	81 Outperform	$336.90B	13.35	9.46%	2.33%	8.23%	16.15%
HSBC	80 Outperform	$207.76B	10.98	10.83%	3.33%	-1.91%	-6.79%
JPM	78 Outperform	$745.21B	13.16	17.25%	2.09%	12.41%	23.05%
SAN	78 Outperform	$121.60B	8.57	13.25%	3.12%	0.26%	19.35%
WFC	76 Outperform	$243.84B	13.46	11.05%	2.16%	3.51%	16.51%
C	74 Outperform	$146.39B	12.38	6.30%	2.86%	2.97%	87.82%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%