HSBC Holdings Plc (HSBA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TBC Bank Group Plc

Bank of Georgia Group Plc

NatWest Group Plc

Standard Chartered Plc

HSBC Holdings Plc

Lloyds Banking Group Plc

OSB Group Plc

Secure Trust Bank Plc

Metro Bank Holdings Plc

Why is HSBC Holdings Plc ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 17.34% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 38.80%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 17.34% signifying inadequate buffers against its risk based assets
A high ratio signifies bank has weaker due diligence systems when giving out loans

Negative results in Sep 25

NET SALES(Q) Lowest at GBP 18,067.7 MM
GROSS NPA (%)(Q) Highest at 2.38%
CASH AND EQV(HY) Lowest at GBP 363,118.54 MM

With ROA of 0.57%, it has a fair valuation with a 1.66 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 31.01%, its profits have fallen by -11%
At the current price, the company has a high dividend yield of 882.3

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HSBC Holdings Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

HSBC Holdings Plc

27.94%

2.24

26.38%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.90%

EBIT Growth (5y)

168.77%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

61.20%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.66

EV to EBIT

25.44

EV to EBITDA

18.03

EV to Capital Employed

1.61

EV to Sales

3.11

PEG Ratio

Dividend Yield

882.33%

ROCE (Latest)

6.34%

ROE (Latest)

12.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.53%

-14What is not working for the Company

NET SALES(Q)

Lowest at GBP 18,067.7 MM

GROSS NPA (%)

CASH AND EQV(HY)

Lowest at GBP 363,118.54 MM

CREDIT DEPOSIT RATIO(HY)

Lowest at 62.63%

NET PROFIT(Q)

Fallen at -23.45%

Here's what is working for HSBC Holdings Plc

Dividend Payout Ratio

Highest at 36.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for HSBC Holdings Plc

Net Sales

Lowest at GBP 18,067.7 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (GBP MM)

Non Performing Loans (%)

Highest at 2.38%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Net Sales

Fallen at -13.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Profit

Fallen at -23.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Cash and Eqv

Lowest at GBP 363,118.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Credit Deposit Ratio

Lowest at 62.63%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)