HSBC Stock Analysis: HSBC Holdings | NYSE
Banks - Diversified | NYSE, USA | Market Cap: 350.768m USD | 12M Return: 67% | US4042804066 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 115M
EPS Trend: 60.3%
Qual. Beats: 0
Rev. Trend: -61.6%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 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: 25.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.18 > 1.0 |
| NWC/Revenue: -1.01k% < 20% (prev -947.4%; Δ -66.78% < -1%) |
| CFO/TA 0.01 > 3% & CFO 29.8b > Net Income 25.5b |
| Net Debt (-500b) to EBITDA (39.7b): -12.58 < 3 |
| Current Ratio: 0.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.46b) vs 12m ago -2.17% < -2% |
| Gross Margin: 54.86% > 18% (prev 49.80%; Δ 5.06% > 0.5%) |
| Asset Turnover: 4.04% > 50% (prev 4.31%; Δ -0.27% > 0%) |
| Interest Coverage Ratio: 0.55 > 6 (EBIT TTM 33.6b / Interest Expense TTM 60.7b) |
| A: -0.40 (Total Current Assets 634b - Total Current Liabilities 1998b) / Total Assets 3438b |
| B: 0.05 (Retained Earnings 168b / Total Assets 3438b) |
| C: 0.01 (EBIT TTM 33.6b / Avg Total Assets 3326b) |
| D: 0.06 (Book Value of Equity 197b / Total Liabilities 3241b) |
| Altman-Z'' = -2.31 = D |
| DSRI: 0.91 (Receivables 1.20b/1.36b, Revenue 135b/139b) |
| GMI: 0.91 (GM 49.80% / 54.86%) |
| AQI: 0.99 (AQ_t 0.81 / AQ_t-1 0.82) |
| SGI: 0.97 (Revenue 135b / 139b) |
| TATA: -0.00 (NI 25.5b - CFO 29.8b) / TA 3438b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of August 25, 2026, the stock is trading at USD 104.09 with a total of 1,354,239 shares traded. Over the past week, the price has changed by +0.28%, over one month by +1.15%, over three months by +11.58% and over the past year by +66.95%.
Current recommended Stop Loss: 100.50 (which is 3.4% or 2.2 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 | 106.1 | 1.9% |
P/E Trailing = 14.6186
P/E Forward = 12.1065
P/S = 5.2018
P/B = 1.7829
P/EG = 1.0089
Revenue TTM = 135b USD
EBIT TTM = 33.6b USD
EBITDA TTM = 39.7b USD
Long Term Debt = unknown (none)
Short Term Debt = 249b USD (from shortTermDebt, last fiscal year)
Debt = 133b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -500b USD (calculated: Debt 133b - CCE 633b)
Enterprise Value = 351b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 0.55 (Ebit TTM 33.6b / Interest Expense TTM 60.7b)
EV/FCF = 13.97x (Enterprise Value 351b / FCF TTM 25.1b)
FCF Yield = 7.16% (FCF TTM 25.1b / Enterprise Value 351b)
FCF Margin = 18.66% (FCF TTM 25.1b / Revenue TTM 135b)
Net Margin = 18.95% (Net Income TTM 25.5b / Revenue TTM 135b)
Gross Margin = 54.86% ((Revenue TTM 135b - Cost of Revenue TTM 60.7b) / Revenue TTM)
Gross Margin QoQ = 55.75% (prev 56.52%)
Tobins Q-Ratio = 0.10 (Enterprise Value 351b / Total Assets 3438b)
Interest Expense / Debt = 45.69% (Interest Expense 60.7b / Debt 133b)
Taxrate = 22.63% (7.61b / 33.6b)
NOPAT = 26.0b (EBIT 33.6b * (1 - 22.63%))
Current Ratio = 0.32 (Total Current Assets 634b / Total Current Liabilities 1998b)
Debt / Equity = 0.68 (Debt 133b / totalStockholderEquity, last quarter 197b)
Debt / EBITDA = -12.58 (Net Debt -500b / EBITDA 39.7b)
Debt / FCF = -19.91 (Net Debt -500b / FCF TTM 25.1b)
Total Stockholder Equity = 196b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.77% (Net Income 25.5b / Total Assets 3438b)
RoE = 13.02% (Net Income TTM 25.5b / Total Stockholder Equity 196b)
RoCE = 2.33% (EBIT 33.6b / Capital Employed (Total Assets 3438b - Current Liab 1998b))
RoIC = 1.55% (NOPAT 26.0b / Invested Capital 1682b)
WACC = 16.12% (E(351b)/V(484b) * Re(8.83%) + D(133b)/V(484b) * Rd(45.69%) * (1-Tc(0.23)))
Discount Rate = 8.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.33 | Cagr: -3.78%
[DCF] Terminal Value 49.82% ; FCFF base≈39.6b ; Y1≈34.8b ; Y5≈28.1b
[DCF] Fair Price = 204.5 (EV 201b - Net Debt -500b = Equity 701b / Shares 3.43b; r=16.12% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 60.30 | EPS CAGR: 18.59% | SUE: 0.02 | # QB: 0
Revenue Correlation: -61.60 | Revenue CAGR: -11.48% | SUE: 0.61 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.27 | Chg30d=+2.98% | Revisions=+25% | Analysts=1
EPS current Year (2026-12-31): EPS=8.60 | Chg30d=-2.27% | Revisions=-25% | GrowthEPS=+13.9% | GrowthRev=+6.6%
EPS next Year (2027-12-31): EPS=9.47 | Chg30d=-4.21% | Revisions=-25% | GrowthEPS=+10.2% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: -17% (up=1, down=2)