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 Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 32.00%
- 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
2
Positive results in Mar 26
- DIVIDEND PAYOUT RATIO(Y) Highest at 24.67%
- NET PROFIT(HY) At GBP 9,111.16 MM has Grown at 50.91%
- GROSS NPA (%)(Q) Lowest at 2.19%
3
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 65.62%, 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 827.5
4
Majority shareholders : Non Institution
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
65.62%
3.49
26.97%
FTSE 100
17.87%
1.52
11.77%
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
1.86
EV to EBIT
15.30
EV to EBITDA
15.30
EV to Capital Employed
2.25
EV to Sales
2.82
PEG Ratio
1.57
Dividend Yield
827.55%
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 Trend7What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 24.67%
NET PROFIT(HY)
At GBP 9,111.16 MM has Grown at 50.91%
GROSS NPA (%)
(Q
OPERATING PROFIT MARGIN(Q)
Highest at 41.55 %
-4What is not working for the Company
CREDIT DEPOSIT RATIO(HY)
Lowest at 62.5%
CASH AND EQV(HY)
Lowest at GBP 343,374.77 MM
NET SALES(Q)
Lowest at GBP 17,558.41 MM
Here's what is working for HSBC Holdings Plc
Non Performing Loans (%)
Lowest at 2.19%
in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are falling
Non Performing Loans (%)
Net Profit
At GBP 9,111.16 MM has Grown at 50.91%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Dividend Payout Ratio
Highest at 24.67% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Operating Profit Margin
Highest at 41.55 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Here's what is not working for HSBC Holdings Plc
Credit Deposit Ratio
Lowest at 62.5% and Fallen
In each half year 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 (%)
Net Sales
Lowest at GBP 17,558.41 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Cash and Eqv
Lowest at GBP 343,374.77 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Capital Adequacy Ratio
Lowest at 16.5%
in the last five periodsMOJO Watch
The Bank's capital base vs its risk assets is deteriorating.
CAR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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