HSBC (HSBC) Stock Analysis
Here is a fundamental analysis of HSBC (HSBC), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| 1-Year Return | 61.57% | 33.15% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| 1-Year Volatility | 27.14% | 26.66% |
| Beta | 0.59 | 0.71 |
Company Profile
HSBC (HSBC) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | HSBC |
|---|---|
| Name | HSBC Holdings plc Sponsored ADR |
| Country/Region | United Kingdom |
| GICS Sector | Financials |
| GICS Industry Group | Banks |
| GICS Industry | Banks |
| GICS Sub-Industry | Diversified Banks |
| Market Capitalization | 317.82 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | July 16, 1999 |
| Security Type | ADR |
Valuation
Price-to-Earnings Ratio (TTM)
HSBC (HSBC) trades at P/E ratio of 15.32, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
HSBC
Banks industry group
15.32
Group distribution
- Max
- 21.53
- Q3
- 15.41
- HSBC
- 15.32
- Median
- 12.95
- Q1
- 11.19
- Min
- 6.13
Largest peers
- RY
- 18.11
- C
- 17.28
- JPM
- 15.36
- HSBC
- 15.32
- MUFG
- 15.27
- BAC
- 13.90
- WFC
- 12.94
Price-to-Sales Ratio (TTM)
P/S ratio is not assessed for HSBC (HSBC) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.
Price-to-Book Ratio (MRQ)
HSBC (HSBC) trades at 7.29 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
HSBC
Banks industry group
7.29
Group distribution
- HSBC
- 7.29
- Max
- 2.22
- Q3
- 1.58
- Median
- 1.30
- Q1
- 1.13
- Min
- 0.64
Largest peers
- HSBC
- 7.29
- RY
- 2.95
- JPM
- 2.50
- MUFG
- 1.64
- WFC
- 1.57
- BAC
- 1.45
- C
- 1.25
Valuation at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.32 | 12.95 |
| Price-to-Sales Ratio (TTM) | -- | -- |
| Price-to-Book Ratio (MRQ) | 7.29 | 1.30 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
HSBC (HSBC) posts ROE of 11.61%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
HSBC
Banks industry group
11.61%
Group distribution
- Max
- 19.15%
- Q3
- 13.07%
- HSBC
- 11.61%
- Median
- 10.82%
- Q1
- 8.57%
- Min
- 3.15%
Largest peers
- JPM
- 16.47%
- RY
- 16.20%
- WFC
- 12.03%
- MUFG
- 11.91%
- HSBC
- 11.61%
- BAC
- 10.64%
- C
- 7.65%
Net Profit Margin (TTM)
HSBC (HSBC) keeps 34.98% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
HSBC
Banks industry group
34.98%
Group distribution
- Max
- 47.55%
- HSBC
- 34.98%
- Q3
- 34.61%
- Median
- 30.31%
- Q1
- 25.62%
- Min
- 12.76%
Largest peers
- HSBC
- 34.98%
- JPM
- 33.94%
- RY
- 33.69%
- BAC
- 28.96%
- MUFG
- 28.51%
- WFC
- 26.74%
- C
- 20.36%
Operating Profit Margin (TTM)
operating margin is set aside for HSBC (HSBC) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 11.61% | 10.82% |
| Return on Assets (TTM) | 0.72% | 1.15% |
| Net Profit Margin (TTM) | 34.98% | 30.31% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for HSBC (HSBC) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for HSBC (HSBC) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
HSBC (HSBC) has dividend yield of 4.05%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
HSBC
Banks industry group
4.05%
Group distribution
- Max
- 5.44%
- HSBC
- 4.05%
- Q3
- 3.24%
- Median
- 2.58%
- Q1
- 1.71%
- Min
- 0.00%
Largest peers
- HSBC
- 4.05%
- RY
- 2.55%
- MUFG
- 2.45%
- WFC
- 2.15%
- BAC
- 2.00%
- JPM
- 1.87%
- C
- 1.72%
Dividend Payout Ratio (TTM)
HSBC (HSBC) has payout ratio of 61.98%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
HSBC
Banks industry group
61.98%
Group distribution
- Max
- 74.88%
- HSBC
- 61.98%
- Q3
- 42.57%
- Median
- 29.00%
- Q1
- 19.94%
- Min
- 0.00%
Largest peers
- HSBC
- 61.98%
- RY
- 41.35%
- C
- 29.17%
- JPM
- 28.24%
- BAC
- 27.30%
- WFC
- 27.05%
- MUFG
- 15.74%
Dividends at a Glance
| Metric | Current stock: HSBC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 4.05% | 2.58% |
| Dividend Payout Ratio (TTM) | 61.98% | 29.00% |