ScoreWhy is HSBC Holdings Plc ?
1
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 profit has grown by an annual rate of 32.00%
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 17.34% signifying inadequate buffers against its risk based assets
- Bank has not been able to control its costs efficiently with a high Cost to Income ratio of 54.98%
2
Poor long term growth as Net profit has grown by an annual rate of 32.00%
3
Flat results in Jun 26
- DIVIDEND PAYOUT RATIO(Y) Lowest at 22.22%
- CASH AND EQV(HY) Lowest at GBP 334,450.25 MM
- CREDIT DEPOSIT RATIO(HY) Lowest at 61.97%
4
With ROA of 0.61%, it has a fair valuation with a 1.86 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 49.23%, its profits have risen by 5.5% ; the PEG ratio of the company is 1.6
- At the current price, the company has a high dividend yield of 828.8
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HSBC Holdings Plc should be less than 10%
- Overall Portfolio exposure to Major Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HSBC Holdings Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
HSBC Holdings Plc
49.23%
3.89
27.76%
FTSE 100
16.06%
1.36
11.82%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
41.89%
EBIT Growth (5y)
3.08%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
61.20%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.85
EV to EBIT
15.27
EV to EBITDA
15.27
EV to Capital Employed
2.24
EV to Sales
2.82
PEG Ratio
1.56
Dividend Yield
828.82%
ROCE (Latest)
14.69%
ROE (Latest)
12.62%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly 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 
Financial Trend9What is working for the Company
NII(Q)
Highest at GBP 6,919.73 MM
PRE-TAX PROFIT(Q)
Highest at GBP 6,974.12 MM
NET PROFIT(Q)
Highest at GBP 5,727.7 MM
EPS(Q)
Highest at GBP 0.33
-3What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 22.22%
CASH AND EQV(HY)
Lowest at GBP 334,450.25 MM
CREDIT DEPOSIT RATIO(HY)
Lowest at 61.97%
Here's what is working for HSBC Holdings Plc
NII
Highest at GBP 6,919.73 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (GBP MM)
Pre-Tax Profit
Highest at GBP 6,974.12 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Pre-Tax Profit
At GBP 6,974.12 MM has Grown at 43.5%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 5,727.7 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.33
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Here's what is not working for HSBC Holdings Plc
Cash and Eqv
Lowest at GBP 334,450.25 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Credit Deposit Ratio
Lowest at 61.97%
in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
Dividend Payout Ratio
Lowest at 22.22%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Footer loading
