Hong Kong Exchanges & Clearing (HKXCY) AI Stock Analysis

• Market Cap: $56.99B
• Dividend Yield: 2.11%
• Average Volume (3M): 93.28K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.02
• Revenue Growth: 0.18%
• EPS Growth: -2.78%
• Country: US
• Employees: 2,380
• Sector: Financial
• Sector Strength: 77
• Industry: Capital Markets
• EPS (TTM): 1.32
• Shares Outstanding: 1,267,837,000
• 10 Day Avg. Volume: 155,301
• 30 Day Avg. Volume: 93,276
• PEG Ratio: 3.27
• Price to Book (P/B): N/A
• Price to Sales (P/S): 24.61
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hong Kong Exchanges & Clearing demonstrates robust financial health with strong revenue growth and profitability. The technical indicators reflect upward momentum, although caution is advised due to potential overbought conditions. The valuation suggests potential overvaluation, with a high P/E ratio and moderate dividend yield. The overall score reflects a solid financial foundation, tempered by valuation concerns and technical caution.

Hong Kong Exchanges & Clearing Business Overview & Revenue Model

Company Description

Hong Kong Exchanges & Clearing Limited (HKXCY) is a leading global exchange group, operating a range of equity, commodity, fixed income, and currency markets. Based in Hong Kong, the company is pivotal in connecting Chinese and international markets, providing a robust platform for securities trading, clearing, settlement, and depository services. HKXCY offers comprehensive financial products and services, including equities, derivatives, commodities, and fixed income products, catering to a diverse range of market participants.

How the Company Makes Money

HKXCY makes money primarily through transaction fees, listing fees, and clearing and settlement services. Transaction fees are generated from the trading of equities, derivatives, and other financial instruments on its platforms. Listing fees are collected from companies that choose to list their shares on the Hong Kong Stock Exchange, a subsidiary of HKXCY. The company also earns revenue from clearing and settlement services, ensuring the safe and efficient transfer of securities and funds between buyers and sellers. Additionally, HKXCY benefits from data sales and technology services, providing market data and infrastructure solutions to global financial institutions. Strategic partnerships and cross-border initiatives, such as Stock Connect with Mainland China, further enhance its revenue streams by attracting international investors seeking access to Chinese markets.

Hong Kong Exchanges & Clearing Financial Statement Overview

Summary

Hong Kong Exchanges & Clearing exhibits strong revenue growth and profitability, supported by efficient cost management and operational performance. The company's balance sheet is stable with low leverage, although the high proportion of liabilities warrants attention. While cash flow performance shows some decline, it remains efficient in converting profits to cash. Overall, the company demonstrates robust financial health with some areas for improvement in leverage and free cash flow generation.

Income Statement

The company's revenue increased significantly by 20.42% from 2022 to 2023, showcasing a strong growth trajectory. The gross profit margin is robust at 95.70%, indicating efficient cost management. The net profit margin improved to 58.16%, reflecting enhanced profitability. EBIT and EBITDA margins stand at 65.65% and 102.33%, respectively, underscoring strong operational performance.

Balance Sheet

The debt-to-equity ratio is low at 0.03, indicating minimal leverage and financial stability. The return on equity is strong at 23.10%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low at 15.05%, suggesting a high proportion of liabilities in the capital structure.

Cash Flow

The free cash flow growth rate is negative at -26.01%, indicating a decline in free cash generation. However, the operating cash flow to net income ratio is favorable at 0.97, suggesting efficient conversion of profits into cash. The free cash flow to net income ratio is 0.85, reflecting healthy cash generation relative to earnings.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
19.29B	20.39B	16.93B	19.47B	16.84B	13.56B
	Gross Profit
16.62B	19.52B	13.30B	15.66B	13.12B	10.28B
	EBIT
13.22B	13.38B	11.73B	14.91B	13.44B	11.22B
	EBITDA
14.79B	20.87B	15.48B	16.34B	15.01B	13.37B
	Net Income Common Stockholders
11.68B	11.86B	10.08B	12.54B	11.51B	9.39B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
217.44B	147.36B	276.39B	342.33B	328.61B	229.40B
	Total Assets
255.95B	341.18B	406.05B	399.30B	399.11B	279.05B
	Total Debt
1.17B	1.60B	1.75B	2.06B	2.78B	2.92B
	Net Debt
-120.03B	-123.50B	-183.22B	-179.30B	-155.22B	-125.23B
	Total Liabilities
215.04B	289.38B	355.95B	349.39B	349.87B	234.55B
	Stockholders Equity
40.73B	51.34B	49.73B	49.63B	48.92B	44.17B
Cash Flow		Free Cash Flow
724.00M	10.11B	13.67B	11.27B	13.42B	8.97B
	Operating Cash Flow
724.00M	11.50B	14.96B	12.34B	14.77B	10.06B
	Investing Cash Flow
0.00	-6.29B	-1.70B	2.28B	-7.48B	-3.48B
	Financing Cash Flow
0.00	-11.25B	-10.37B	-12.67B	-7.47B	-7.15B

Hong Kong Exchanges & Clearing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.39
• 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 HKXCY, the sentiment is Positive. The current price of 45.39 is above the 20-day moving average (MA) of 44.34, above the 50-day MA of 40.52, and above the 200-day MA of 36.18, indicating a bullish trend. The MACD of 1.44 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HKXCY.

Hong Kong Exchanges & Clearing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	82 Outperform	$93.85B	27.12	13.26%	3.96%	9.88%	9.18%
CBOE	79 Outperform	$22.93B	29.53	18.42%	1.15%	8.51%	1.13%
ICE	77 Outperform	$96.73B	35.38	10.32%	1.06%	15.32%	14.02%
NDAQ	75 Outperform	$41.58B	37.77	10.15%	1.29%	21.96%	-8.37%
MKTX	73 Outperform	$8.01B	28.71	20.45%	1.43%	9.06%	6.10%
HKXCY	70 Outperform	$56.99B	34.32	24.77%	2.11%	0.18%	-2.78%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%