HSBC

HSBC Holdings plc

Fundamental data last updated:October 24, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

GB

Next Earnings Date

Pending Announcement

Business Summary

HSBC Holdings plc functions as a prominent global entity, delivering a full spectrum of banking and financial services around the world. Its operations are structured into three key divisions: Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets. The Wealth and Personal Banking unit is dedicated to individual customers, supplying a broad array of retail banking offerings. This includes essential services like current and savings accounts, various lending products such as mortgages and personal loans, a selection of credit and debit cards, and convenient local and international payment facilities. Furthermore, this segment provides in-depth wealth management solutions, encompassing insurance and investment products, worldwide asset management expertise, and tailored private wealth strategies for both general banking clients and affluent individuals. The Commercial Banking division targets businesses across the size spectrum. It extends crucial services such as credit and financing, treasury and cash flow management, payment processing, business insurance, and investment support. Additionally, it offers corporate cards, international trade and receivables financing, foreign exchange transactions, capital-raising capabilities via debt and equity markets, and strategic advisory services. Its client base spans from small and medium-sized enterprises to larger corporations. Lastly, the Global Banking and Markets segment focuses on advanced financial services for major organizations and investors. It provides sophisticated financing, expert advisory, and transaction execution across various asset classes, including credit, interest rates, foreign exchange, equities, and money market instruments, along with comprehensive securities services. This division also undertakes principal investment activities, serving governmental bodies, corporate entities, institutional clients, and high-net-worth private investors. Founded in 1865, HSBC Holdings plc maintains its central operations in London, United Kingdom.

 


VALUATION

P/E

76.16

Market Cap ($M USD)

$339.34B

Forward P/E

7.74

PEG

0.01

PRICE TO SALES

2.67

PRICE TO BOOK

1.92

EV / EBITDA

17.15

5-Year Average P/E

Free Cash Flow Yield

0.00%

DCF Value

$171.53

Graham Number

$17.24

Price to FCF

0.00

EV to FCF

0.00

Earnings Yield

6.64%

FCF Yield

0.00%

DIVIDEND

Yield

3.81%

Annual Payout

$0.74

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.30

Next Year EPS Growth Estimate

$12.75

Next Year Revenue Growth Estimate

$87.65B

Return on Equity (ROE)

12.07%

FREE CASH FLOW

Operating Margin

22.47%

Debt-to-Equity

1.29

Piotroski F-Score

4

Altman Z-Score

-0.36

Return on Invested Capital (ROIC)

0.91%

Current Ratio

0.99

Quick Ratio

0.99

Net Debt to EBITDA

6.66

Interest Coverage

0.46

Gross Profit margin

49.29%

FCF PER SHARE

$0.00

REVENUE PER SHARE

$7.34

Gainseekers Quantitative Analysis

Summary

HSBC’s valuation paints a complex picture. The stock has traded below its DCF value, suggesting potential undervaluation, yet its Price/Earnings ratio is sky-high, hinting at market skepticism. The Forward P/E is more reasonable, indicating expectations of future earnings growth. However, the Altman Z-score is negative, signaling financial distress, while the Earnings Yield is modest. This juxtaposition of metrics suggests a company with growth potential but significant financial risks.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, HSBC, as a diversified bank, is positioned to leverage technology for operational efficiency and customer engagement. The financial services sector is increasingly reliant on AI for risk management and personalized banking solutions. HSBC's global reach and resources could enable it to integrate cutting-edge tech to maintain competitiveness.

The Bull Case

For the value-driven investor, HSBC offers intriguing prospects. The ROIC is modest, but the operating margin of 22.47% indicates solid pricing power. Despite a Piotroski F-Score of 4, which is average, the bank's dividend yield of 3.89% provides income stability. These factors, combined with a low Forward PEG ratio, suggest efficient capital allocation and potential for growth.

The Bear Case

On the flip side, HSBC faces significant structural risks. The Price/Book ratio of 1.86 and Price/Sales ratio of 2.59 suggest it may be overvalued relative to its assets and revenue. The negative Altman Z-score and poor interest coverage ratio highlight financial vulnerabilities. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$52.00

Institutional Ownership %

1-Year Beta

0.57

Insider Buying % (6 Mo)

Distance to 52-Week High

0.04%

Distance to 52-Week Low

38.62%

EARNINGS SURPRISE %

0.92%

50-DAY SMA

$92.20

200-DAY SMA

$81.96

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.