HSBC Holdings (HSBC) AI Stock Analysis

• Market Cap: $240.73B
• Dividend Yield: 4.68%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.63
• 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: 3,440,394,300
• 10 Day Avg. Volume: 1,839,463
• 30 Day Avg. Volume: 1,684,832
• 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: 1.73
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: 15.21
• 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.

HSBC Holdings Business Overview & Revenue Model

Company Description

HSBC Holdings plc is a British multinational banking and financial services organization, headquartered in London. It operates in various sectors including retail banking, wealth management, commercial banking, and global banking and markets. HSBC provides a wide range of core products and services, such as personal banking products, credit cards, mortgages, investment services, and corporate financing solutions, catering to both individual and institutional clients around the world.

How the Company Makes Money

HSBC generates revenue through multiple streams, primarily from net interest income and non-interest income. Net interest income is derived from the interest earned on loans and advances to customers, minus the interest paid on deposits and other borrowings. Non-interest income includes fees and commissions from various services such as investment banking, wealth management, and transaction services. Additionally, HSBC benefits from its significant global presence, allowing it to capitalize on cross-border transactions and foreign exchange services. Strategic partnerships with fintech companies and other financial institutions also enhance its service offerings and revenue potential. Furthermore, HSBC's focus on emerging markets provides opportunities for growth, particularly in Asia, where demand for banking services is rising.

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	27.45B	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: Neutral

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 67.82, below the 50-day MA of 68.16, and above the 200-day MA of 59.94, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, 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
HSBC	78 Outperform	$240.73B	14.74	8.66%	4.68%	-9.54%	-22.46%
WFC	76 Outperform	$273.51B	14.35	11.56%	1.92%	-4.37%	26.41%
MUFG	71 Outperform	$172.31B	14.03	9.43%	1.39%	0.82%	28.48%
BAC	70 Outperform	$390.98B	14.62	9.87%	2.02%	1.36%	33.84%
JPM	70 Outperform	$850.36B	15.32	16.35%	1.79%	1.95%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	67 Neutral	$185.95B	14.20	6.88%	2.30%	-0.63%	105.57%

HSBC Holdings Corporate Events

HSBC Holdings Reports Mixed 2025 Interim Results

HSBC Holdings plc is a global banking and financial services organization, operating across various segments such as commercial banking, wealth management, and global banking and markets. Known for its extensive international presence, HSBC serves millions of customers worldwide.

HSBC Earnings Call: Growth Amid Challenges

HSBC Holdings plc’s recent earnings call painted a picture of robust growth and strategic advancements, tempered by some significant challenges. The sentiment was balanced, highlighting strong revenue and shareholder returns, alongside impressive customer growth and technological investments. However, concerns were raised about the Hong Kong Commercial Real Estate (CRE) market, HIBOR-related headwinds, and an impairment in BoCom, reflecting a mix of positive achievements and existing challenges.