Hong Kong Exchanges & Clearing (HKXCY) AI Stock Analysis

• Market Cap: $73.38B
• Dividend Yield: 2.28%
• Average Volume (3M): 26.61K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.53
• Revenue Growth: 26.09%
• EPS Growth: 17.40%
• Country: US
• Employees: 2,444
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.45
• Shares Outstanding: 1,267,837,000
• 10 Day Avg. Volume: 6,322
• 30 Day Avg. Volume: 26,615
• PEG Ratio: 2.75
• Price to Book (P/B): 6.85
• Price to Sales (P/S): 21.25
• P/FCF Ratio: 33.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 3.65
• 1Y Price Target: $64.00
• Price Target Upside: 10.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $64.00 ▲(10.38% Upside)

The overall score is largely supported by strong financial performance and bullish technical indicators. However, the overvaluation and overbought technical signals temper the score, suggesting potential risks. The absence of earnings call and corporate events data has been factored into the score calculation.

Hong Kong Exchanges & Clearing Business Overview & Revenue Model

Company Description

Hong Kong Exchanges & Clearing Limited (HKEX) is a leading global operator of exchanges and clearing houses based in Hong Kong. It is one of the largest financial market operators in the world, providing a platform for trading a wide range of securities, including equities, derivatives, commodities, fixed income, and currencies. HKEX operates the Hong Kong Stock Exchange and Hong Kong Futures Exchange, as well as the London Metal Exchange through its subsidiary, LME Holdings Limited.

How the Company Makes Money

HKEX generates revenue through various streams, primarily from trading fees, clearing and settlement fees, and listing fees. Trading fees are collected from participants who buy and sell securities on its platforms. Clearing and settlement fees are earned by facilitating the post-trade processing of transactions, ensuring the final transfer of ownership is achieved smoothly. Listing fees are charged to companies that wish to list their shares on the exchange, providing them with exposure to global investors. Additionally, HKEX benefits from market data fees, which are derived from selling real-time and historical market data to financial institutions and other market participants. Significant partnerships, such as the Stock Connect programs with Shanghai and Shenzhen exchanges, enhance cross-border trading opportunities and contribute to its earnings. HKEX's strategic acquisitions and collaborations further broaden its service offerings and strengthen its revenue-generating capabilities.

Hong Kong Exchanges & Clearing Financial Statement Overview

Summary

Strong profitability is indicated by high net profit and EBIT margins. The balance sheet reflects financial stability with low leverage and a solid equity position. Cash flow remains stable with positive growth. However, the decline in revenue growth poses a concern.

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	22.71B	17.35B	20.39B	18.27B	20.75B	19.05B
Gross Profit	19.95B	12.94B	19.52B	17.48B	19.98B	18.35B
EBITDA	21.30B	22.15B	20.87B	12.29B	16.34B	13.91B
Net Income	15.44B	13.05B	11.86B	10.08B	12.54B	11.51B
Balance Sheet
Total Assets	424.87B	381.63B	341.18B	406.05B	399.30B	399.11B
Cash, Cash Equivalents and Short-Term Investments	282.46B	230.91B	224.70B	276.39B	342.33B	328.61B
Total Debt	873.00M	1.29B	2.05B	2.24B	2.06B	2.78B
Total Liabilities	367.42B	327.22B	289.38B	355.95B	349.39B	349.87B
Stockholders Equity	56.91B	53.85B	51.34B	49.73B	49.63B	48.92B
Cash Flow
Free Cash Flow	0.00	11.17B	10.11B	13.67B	11.27B	13.42B
Operating Cash Flow	0.00	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: 57.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 57.98 is above the 20-day moving average (MA) of 57.01, above the 50-day MA of 56.00, and above the 200-day MA of 47.49, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.19 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
CBOE	77 Outperform	$25.26B	28.31	19.26%	1.09%	18.99%	17.97%
CME	77 Outperform	$95.66B	25.69	13.54%	4.04%	11.15%	13.98%
HKXCY	74 Outperform	$73.38B	40.98	28.32%	2.28%	26.09%	17.40%
ICE	71 Outperform	$92.15B	30.90	10.56%	1.16%	11.44%	29.10%
NDAQ	70 Outperform	$50.12B	33.56	12.77%	1.16%	23.55%	49.91%
MSCI	69 Neutral	$43.38B	37.15	-133.00%	1.25%	10.48%	0.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%