HSBC Holdings (HSBC) AI Stock Analysis

• Market Cap: $255.38B
• Dividend Yield: 4.37%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.65
• Revenue Growth: -9.54%
• EPS Growth: -22.46%
• Country: US
• Employees: 211,940
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.80
• Shares Outstanding: 3,435,047,900
• 10 Day Avg. Volume: 1,463,508
• 30 Day Avg. Volume: 1,674,023
• PEG Ratio: 0.92
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 3.12
• P/FCF Ratio: 3.11
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: 20.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $77.00 ▲(17.25% Upside)

HSBC's strong financial performance and positive earnings call are the most significant factors driving the score. The bank's robust revenue growth, zero debt position, and strategic focus on wealth management contribute positively. However, mixed technical indicators and challenges in Hong Kong real estate slightly temper the outlook.

Positive Factors

Revenue Growth

The consistent revenue growth, particularly in the wealth segment, indicates strong market demand and effective business strategies that are likely to sustain future growth.

Cash Generation

Strong cash generation enhances financial flexibility, enabling HSBC to invest in growth opportunities and withstand economic fluctuations, supporting long-term stability.

Strategic Focus on Wealth Management

HSBC's focus on expanding its wealth management services, especially in Asia, positions it well to capitalize on growing demand in emerging markets, driving future revenue.

Negative Factors

Legal Provisions Impact

Significant legal provisions can strain financial resources and impact profitability, potentially diverting focus from core business operations and strategic initiatives.

Challenges in Hong Kong Real Estate

Rising loan defaults in Hong Kong's real estate sector could affect asset quality and increase risk exposure, challenging HSBC's financial performance in this key market.

Increased Operating Expenses

Rising operating expenses, driven by legal provisions and planned investments, may pressure margins and reduce profitability, impacting HSBC's ability to achieve financial targets.

HSBC Holdings Business Overview & Revenue Model

Company Description

HSBC Holdings plc is a global banking and financial services organization headquartered in London, United Kingdom. It operates in various sectors including retail banking, commercial banking, investment banking, and wealth management. The company serves millions of customers across the world, providing a comprehensive range of financial products and services, including personal and business banking, insurance, and asset management. HSBC is particularly known for its strong international presence, facilitating cross-border transactions and catering to multinational corporations.

How the Company Makes Money

HSBC generates revenue through multiple streams primarily by providing financial services across its various business segments. Key revenue sources include interest income from loans and advances, fees and commissions from banking services, and trading income from its investment banking arm. The retail banking and wealth management segment earns income through interest on personal loans, mortgages, and credit cards, as well as fees for wealth management services. The commercial banking segment contributes through lending to small and medium-sized enterprises (SMEs) and corporate clients. Additionally, HSBC benefits from its investment banking division, which engages in advisory services, capital markets transactions, and proprietary trading. Significant partnerships with multinational corporations and governmental bodies enhance its ability to facilitate global trade and investment, further contributing to its earnings.

HSBC Holdings Financial Statement Overview

Summary

HSBC has demonstrated strong financial health with consistent revenue growth and effective cash flow management. The zero debt position in 2024 significantly strengthens its balance sheet, although there is room for improvement in operational efficiency as indicated by the slight decrease in return on equity.

Income Statement

HSBC has demonstrated a strong income statement performance with consistent revenue growth, particularly from 2023 to 2024, showing a growth rate of 7.28%. The net profit margin improved slightly to 35.45% in 2024 from 37.34% in 2023, indicating efficient cost management and profitability. However, the absence of EBIT and EBITDA margins in 2024 suggests a potential need for detailed operational cost analysis.

Balance Sheet

The balance sheet reflects solid financial stability with zero total debt in 2024, enhancing the debt-to-equity ratio. HSBC's equity ratio remained strong, maintaining investor confidence. However, the return on equity slightly decreased to 12.96% in 2024 from 12.70% in 2023, indicating a slight dip in efficiency in generating returns on shareholder equity.

Cash Flow

HSBC's cash flow analysis shows robust free cash flow growth of 73.34% from 2023 to 2024, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.72 in 2024 signifies effective cash management. However, the free cash flow to net income ratio slightly declined from 1.50 in 2023 to 2.56 in 2024, suggesting potential reinvestment or operational changes.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.37B	61.25B	56.35B	76.17B	73.95B	77.46B
Gross Profit	65.82B	67.40B	64.44B	53.72B	64.25B	63.28B
EBITDA	20.85B	36.39B	33.81B	20.91B	23.19B	14.02B
Net Income	18.92B	23.98B	23.53B	15.56B	13.92B	5.23B
Balance Sheet
Total Assets	3.21T	3.02T	3.04T	2.97T	2.96T	2.98T
Cash, Cash Equivalents and Short-Term Investments	246.36B	284.51B	299.57B	350.05B	422.44B	328.73B
Total Debt	486.32B	242.35B	426.69B	204.24B	395.44B	378.87B
Total Liabilities	3.01T	2.82T	2.85T	2.77T	2.75T	2.78T
Stockholders Equity	171.84B	184.97B	185.33B	177.83B	198.25B	196.44B
Cash Flow
Free Cash Flow	0.00	61.42B	35.42B	22.02B	100.75B	178.71B
Operating Cash Flow	0.00	65.31B	39.11B	26.43B	104.31B	182.22B
Investing Cash Flow	0.00	-76.56B	-62.91B	-34.48B	27.54B	-22.43B
Financing Cash Flow	0.00	-26.46B	-17.56B	-6.29B	-10.79B	-4.64B

HSBC Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.67
• 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 HSBC, the sentiment is Positive. The current price of 65.67 is below the 20-day moving average (MA) of 71.17, below the 50-day MA of 69.76, and above the 200-day MA of 62.26, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 93.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSBC.

HSBC Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFC	80 Outperform	$291.18B	15.28	11.56%	1.83%	-4.37%	26.41%
HSBC	78 Outperform	$255.38B	15.83	8.66%	4.37%	-9.54%	-22.46%
MUFG	77 Outperform	$179.57B	14.36	9.01%	2.50%	-1.09%	8.53%
BAC	72 Outperform	$402.66B	15.03	9.87%	1.96%	0.15%	33.84%
JPM	72 Outperform	$867.09B	15.78	16.35%	1.79%	1.89%	12.32%
C	68 Neutral	$200.04B	15.72	6.88%	2.08%	-0.62%	105.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

HSBC Holdings Corporate Events

HSBC Executive Acquires Shares Under Incentive Plan

On November 27, 2025, Ian Stuart, Chief Executive of HSBC UK Bank plc, acquired 14 ordinary shares of HSBC Holdings plc under the company’s UK Share Incentive Plan. This transaction, disclosed in compliance with the UK version of the EU Market Abuse Regulation, highlights the ongoing participation of senior management in the company’s equity plans, potentially aligning their interests with those of shareholders.

HSBC Updates Share Capital and Voting Rights as of November 2025

On November 27, 2025, HSBC Holdings plc announced that its issued share capital consisted of 17,175,239,862 ordinary shares, with no shares held in treasury. This update on voting rights is crucial for shareholders who need to calculate their interests in compliance with the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, as well as the Hong Kong Securities and Futures Ordinance.

HSBC Proposes Privatization of Hang Seng Bank with Executive Consents

On November 27, 2025, HSBC Holdings announced a proposal for the privatization of Hang Seng Bank Limited by The Hongkong and Shanghai Banking Corporation Limited through a scheme of arrangement. The announcement detailed the granting of relevant consents by the Executive under the Takeovers Code, allowing HSBC Asia Pacific and its affiliates to engage in specific securities dealings related to Hang Seng Bank during the offer period. These consents ensure compliance with the Takeovers Code while facilitating the Group’s ordinary business activities, such as structured products, market making, and passive index-tracking funds. The announcement highlights HSBC’s strategic move to consolidate its operations in the region, potentially impacting its market positioning and stakeholder interests.

HSBC Holdings Updates on Hang Seng Bank Privatization Proposal

On November 27, 2025, HSBC Holdings, along with HSBC Asia Pacific and Hang Seng Bank, announced an update on the proposed privatization of Hang Seng Bank by way of a scheme of arrangement. This proposal, initially announced on October 9, 2025, involves the withdrawal of Hang Seng Bank shares from listing. The companies are preparing the necessary Scheme Document, which is expected to be dispatched by December 17, 2025, and are seeking court directions for a meeting to approve the scheme. This move is part of HSBC’s strategic efforts to streamline operations and enhance its market positioning in the Asia-Pacific region.

HSBC Executive Barry O’Byrne Sells Shares Worth Over £1 Million

On November 11, 2025, Barry O’Byrne, the Chief Executive of International Wealth and Premier Banking at HSBC Holdings, sold 92,389 ordinary shares of the company at a price of £11.010132 per share on the London Stock Exchange. This transaction, which totaled £1,017,215.09, was disclosed in accordance with the UK version of the EU Market Abuse Regulation, highlighting the company’s commitment to transparency and regulatory compliance. The sale of shares by a senior executive may have implications for stakeholders, potentially reflecting personal financial strategies or signaling changes in executive confidence.

HSBC Appoints Wei Sun Christianson as Independent Director

On 10 November 2025, HSBC Holdings plc announced the appointment of Wei Sun Christianson as an Independent non-executive Director, effective 1 January 2026. Wei Sun, with extensive banking and regulatory experience, previously served as Co-CEO of Morgan Stanley Asia Pacific and CEO of Morgan Stanley China. Her appointment is expected to strengthen HSBC’s strategic focus in key markets such as Hong Kong and Mainland China, enhancing the board’s expertise in these regions.