HSBC Stock Analysis: HSBC Holdings | NYSE
Banks - Diversified | NYSE, USA | Market Cap: 331.921m USD | 12M Return: 65.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 127M
EPS Trend: 54.1%
Qual. Beats: 0
Rev. Trend: -26.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
HSBC Holdings plc is a London-headquartered, London-headquartered global banking group founded in 1865 that provides retail, commercial, and investment banking products and services worldwide. It operates through four reportable segments: Hong Kong (covering HSBC Hong Kong and Hang Seng Bank), the UK (including M&S Bank, first direct, and HSBC Innovation Bank), Corporate and Institutional Banking (transaction banking and capital markets), and International Wealth and Premier Banking (private banking, asset management, and insurance outside Hong Kong and the UK). The group trades on the NYSE as an ADR and is classified as a Diversified Bank within the Financials sector, with a mega-cap market capitalization of roughly $326 billion.
As a globally diversified bank, HSBCs business model is anchored in deposit-taking and lending, which generates net interest income, complemented by fee-based businesses such as wealth management, asset management, insurance, and capital markets activities. Its heavy weighting toward Hong Kong and other Asian markets distinguishes it from most large Western peers and aligns it with the broader trend of global banks reallocating capital toward faster-growing Asia-Pacific economies.
- Hong Kong property downturn pressures HSBC Asia loan book and fees
- Net interest margin peaks as central banks cut rates
- Share buybacks accelerate returning excess capital to investors
| Net Income: 22.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.25 > 1.0 |
| NWC/Revenue: -1.06k% < 20% (prev -766.0%; Δ -293.4% < -1%) |
| CFO/TA 0.01 > 3% & CFO 29.8b > Net Income 22.3b |
| Net Debt (-479b) to EBITDA (35.8b): -13.38 < 3 |
| Current Ratio: 0.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.46b) vs 12m ago -2.68% < -2% |
| Gross Margin: 52.29% > 18% (prev 55.77%; Δ -3.48% > 0.5%) |
| Asset Turnover: 4.07% > 50% (prev 5.36%; Δ -1.29% > 0%) |
| Interest Coverage Ratio: 0.48 > 6 (EBIT TTM 29.8b / Interest Expense TTM 61.7b) |
| A: -0.41 (Total Current Assets 580b - Total Current Liabilities 1950b) / Total Assets 3306b |
| B: 0.05 (Retained Earnings 170b / Total Assets 3306b) |
| C: 0.01 (EBIT TTM 29.8b / Avg Total Assets 3180b) |
| D: 0.06 (Book Value of Equity 197b / Total Liabilities 3109b) |
| Altman-Z'' = -2.42 = D |
As of July 11, 2026, the stock is trading at USD 99.09 with a total of 1,023,504 shares traded. Over the past week, the price has changed by +2.39%, over one month by +15.01%, over three months by +10.39% and over the past year by +65.57%.
Current recommended Stop Loss: 96.30 (which is 2.8% or 1.4 ATR below the current price).
HSBC Holdings has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy HSBC.
- StrongBuy: 1
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 113.8 | 14.8% |
P/E Trailing = 15.9967
P/E Forward = 11.1359
P/S = 5.2046
P/B = 1.6695
P/EG = 0.9356
Revenue TTM = 129b USD
EBIT TTM = 29.8b USD
EBITDA TTM = 35.8b USD
Long Term Debt = unknown (0.0)
Short Term Debt = 216b USD (from shortTermDebt, last quarter)
Debt = 102b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -479b USD (calculated: Debt 102b - CCE 580b)
Enterprise Value = 332b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 0.48 (Ebit TTM 29.8b / Interest Expense TTM 61.7b)
EV/FCF = 13.22x (Enterprise Value 332b / FCF TTM 25.1b)
FCF Yield = 7.56% (FCF TTM 25.1b / Enterprise Value 332b)
FCF Margin = 19.42% (FCF TTM 25.1b / Revenue TTM 129b)
Net Margin = 17.25% (Net Income TTM 22.3b / Revenue TTM 129b)
Gross Margin = 52.29% ((Revenue TTM 129b - Cost of Revenue TTM 61.7b) / Revenue TTM)
Gross Margin QoQ = 56.52% (prev 45.79%)
Tobins Q-Ratio = 0.10 (Enterprise Value 332b / Total Assets 3306b)
Interest Expense / Debt = 60.62% (Interest Expense 61.7b / Debt 102b)
Taxrate = 22.97% (6.84b / 29.8b)
NOPAT = 23.0b (EBIT 29.8b * (1 - 22.97%))
Current Ratio = 0.30 (Total Current Assets 580b / Total Current Liabilities 1950b)
Debt / Equity = 0.52 (Debt 102b / totalStockholderEquity, last quarter 197b)
Debt / EBITDA = -13.38 (Net Debt -479b / EBITDA 35.8b)
Debt / FCF = -19.07 (Net Debt -479b / FCF TTM 25.1b)
Total Stockholder Equity = 195b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.70% (Net Income 22.3b / Total Assets 3306b)
RoE = 11.45% (Net Income TTM 22.3b / Total Stockholder Equity 195b)
RoCE = 15.30% (EBIT 29.8b / Capital Employed (Equity 195b + L.T.Debt 0.0))
RoIC = 1.47% (NOPAT 23.0b / Invested Capital 1566b)
WACC = 7.26% (E(332b)/V(434b) * Re(9.49%) + (debt cost/tax rate unavailable))
Discount Rate = 9.49% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.68%
[DCF] Terminal Value 73.10% ; FCFF base≈39.6b ; Y1≈34.8b ; Y5≈28.1b
[DCF] Fair Price = 271.0 (EV 451b - Net Debt -479b = Equity 929b / Shares 3.43b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 54.12 | EPS CAGR: 15.30% | SUE: 0.05 | # QB: 0
Revenue Correlation: -26.44 | Revenue CAGR: -5.63% | SUE: 0.55 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.29 | Chg30d=-3.90% | Revisions=-25% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.20 | Chg30d=-2.07% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=8.80 | Chg30d=+3.39% | Revisions=+40% | GrowthEPS=+16.5% | GrowthRev=+5.3%
EPS next Year (2027-12-31): EPS=9.89 | Chg30d=+6.29% | Revisions=+40% | GrowthEPS=+12.4% | GrowthRev=+4.3%