Hong Kong Exchanges & Clearing (HKXCY) AI Stock Analysis

• Market Cap: $66.71B
• Dividend Yield: 4.21%
• Average Volume (3M): 6.80K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.60
• Revenue Growth: 19.71%
• EPS Growth: 24.54%
• Country: US
• Employees: 2,444
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.42
• Shares Outstanding: 1,267,837,000
• 10 Day Avg. Volume: 20,401
• 30 Day Avg. Volume: 6,800
• PEG Ratio: -2.14
• Price to Book (P/B): 8.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.01
• 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

• Rating: 74 Outperform
• Price Target: $58.00 ▲(9.13%Upside)

The overall stock score for Hong Kong Exchanges & Clearing is 74.25, reflecting strong financial stability and profitability as the most significant strengths. The company benefits from positive technical trends but faces valuation challenges due to a high P/E ratio. The absence of earnings call insights and lack of new corporate events slightly limits the evaluation but does not detract from the core financial strengths and technical momentum.

Hong Kong Exchanges & Clearing Business Overview & Revenue Model

Company Description

Hong Kong Exchanges and Clearing Limited (HKEX) is a leading global operator of financial markets and a primary facilitator of capital market activities in Asia. Headquartered in Hong Kong, HKEX operates a range of trading platforms, including the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, and the London Metal Exchange. By offering a comprehensive suite of products and services across equities, commodities, fixed income, and currency markets, HKEX plays a pivotal role in connecting investors and issuers worldwide.

How the Company Makes Money

HKEX generates its revenue through a diversified business model primarily based on transaction fees, listing fees, and clearing and settlement fees. Transaction fees are earned from the execution of trades on its various platforms, including equities and derivatives markets. Listing fees are collected from companies seeking to list their shares on the Stock Exchange of Hong Kong. Additionally, HKEX earns clearing and settlement fees by providing post-trade services that ensure the smooth processing of trades. The company also benefits from market data sales and technology services, offering essential information and infrastructure to its clients. Strategic partnerships, such as its linkages with mainland China's financial markets, further enhance its revenue opportunities by increasing cross-border trading activities.

Hong Kong Exchanges & Clearing Financial Statement Overview

Summary

Hong Kong Exchanges & Clearing exhibits strong profitability with high net profit and EBIT margins, and low leverage as indicated by a debt-to-equity ratio of 0.02. However, the decline in revenue growth of -14.94% is a concern, necessitating a focus on growth strategies.

Income Statement

The company has demonstrated strong profitability with a consistent net profit margin of around 75% and a healthy EBIT margin of over 85%. However, there is a noticeable decline in total revenue from 2023 to 2024, indicating a revenue growth rate of -14.94%, which is a concern for future growth.

Balance Sheet

The balance sheet shows robust equity levels with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage and financial stability. The equity ratio is around 14.11%, highlighting a solid equity position. Return on equity remains strong at 24.23%, demonstrating efficient use of equity to generate profits.

Cash Flow

The company has a stable cash flow position with a slight increase in free cash flow from 2023 to 2024, resulting in a free cash flow growth rate of 10.43%. The operating cash flow to net income ratio is close to 1, reflecting efficient cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.93B	17.35B	20.39B	16.93B	19.47B	16.84B
Gross Profit	12.76B	12.94B	19.52B	13.30B	15.66B	13.12B
EBITDA	14.81B	22.15B	20.87B	15.48B	16.34B	15.01B
Net Income	11.68B	13.05B	11.86B	10.08B	12.54B	11.51B
Balance Sheet
Total Assets	379.50B	381.63B	341.18B	406.05B	399.30B	399.11B
Cash, Cash Equivalents and Short-Term Investments	265.07B	230.91B	224.70B	276.39B	342.33B	328.61B
Total Debt	1.76B	1.29B	1.60B	1.75B	2.06B	2.78B
Total Liabilities	330.37B	327.22B	289.38B	355.95B	349.39B	349.87B
Stockholders Equity	48.73B	53.85B	51.34B	49.73B	49.63B	48.92B
Cash Flow
Free Cash Flow	724.00M	11.17B	10.11B	13.67B	11.27B	13.42B
Operating Cash Flow	724.00M	12.77B	11.50B	14.96B	12.34B	14.77B
Investing Cash Flow	0.00	3.19B	-6.29B	-1.70B	2.28B	-7.48B
Financing Cash Flow	0.00	-11.26B	-11.25B	-10.37B	-12.67B	-7.47B

Hong Kong Exchanges & Clearing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 53.15 is above the 20-day moving average (MA) of 52.67, above the 50-day MA of 49.63, and above the 200-day MA of 42.49, indicating a bullish trend. The MACD of 1.05 indicates Positive momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, 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
NDAQ	83 Outperform	$51.71B	40.84	11.43%	1.20%	25.89%	16.37%
CBOE	80 Outperform	$24.23B	30.33	18.93%	1.09%	15.76%	1.97%
CME	79 Outperform	$99.71B	27.82	13.40%	1.81%	11.72%	13.31%
ICE	79 Outperform	$105.04B	37.92	10.27%	1.05%	13.25%	10.82%
HKXCY	74 Outperform	$66.71B	36.98	27.96%	4.21%	19.71%	24.54%
MSCI	68 Neutral	$45.47B	40.42	-117.99%	1.23%	11.67%	-0.89%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%