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How to buy HSBC (HSBA) stocks in Canada

Learn how to easily invest in HSBC stocks.

HSBC Holdings plc
LSE: HSBA - GBX
p512.50
- p3.50 ( - 0.68%)
BANKS-DIVERSIFIED

HSBC is a banks-diversified business based in the UK. HSBC stocks (HSBA.LSE) are listed on the London Stock Exchange (LSE) and all prices are listed in pence sterling. Its last market close was 423.35p – an increase of 2.95% over the previous week. HSBC employs 223,448 staff and has a trailing 12-month revenue of around £49.5 billion.

How to buy shares in HSBC

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – HSBA – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Is it a good time to buy HSBC stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

How has Coronavirus impacted HSBC's stock price?

Since the stock market crash in March caused by coronavirus, HSBC's stock price has had significant negative movement.

Its last market close was 516p, which is 8.22% down on its pre-crash value of 562.2p and 19.22% up on the lowest point reached during the March crash when the stocks fell as low as 432.8p.

If you had bought £1,000 worth of HSBC stocks at the start of February 2020, those stocks would have been worth £881.76 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £928.54.

HSBC stock price (London Stock Exchange (LSE):HSBA)

Use our graph to track the performance of HSBA stocks over time.

HSBC shares at a glance

Information last updated 2022-01-17.
Latest market close516.00p
52-week range329.55p - 519.28p
50-day moving average 447.71p
200-day moving average 425.35p
Wall St. target price5.01p
PE ratio 12.8831
Dividend yield 0.22p (3.08%)
Earnings per share (TTM) 40.20p

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Note: The dollar amounts in the table below are in Canadian dollars.

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HSBC price performance over time

Historical closes compared with the close of 516p from 2022-01-18

1 week (2022-01-12) 2.95%
1 month (2021-12-17) 15.84%
3 months (2021-10-19) 19.42%
6 months (2021-07-19) 31.70%
1 year (2021-01-19) 25.41%
2 years (2020-01-17) -13.13%
3 years (2019-01-18) 651.8
5 years (2017-01-19) 679.3

Is HSBC under- or over-valued?

Valuing HSBC stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of HSBC's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

HSBC's P/E ratio

HSBC's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, HSBC shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

HSBC's PEG ratio

HSBC's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.2504. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into HSBC's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

HSBC financials

Revenue TTM £49.5 billion
Operating margin TTM 32.63%
Gross profit TTM £41.6 billion
Return on assets TTM 0.46%
Return on equity TTM 6.68%
Profit margin 25.74%
Book value 8.70p
Market capitalisation £105.1 billion

TTM: trailing 12 months

HSBC's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like HSBC.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

HSBC's total ESG risk score

Total ESG risk: 26.14

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and HSBC's overall score of 26.14 (as at 12/31/2018) is nothing to write home about – landing it in it in the 40th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like HSBC is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

HSBC's environmental score

Environmental score: 4.32/100

HSBC's environmental score of 4.32 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that HSBC is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

HSBC's social score

Social score: 14.77/100

HSBC's social score of 14.77 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that HSBC is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

HSBC's governance score

Governance score: 7.56/100

HSBC's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that HSBC is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

HSBC's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. HSBC scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that HSBC hasn't always managed to keep its nose clean.

HSBC share dividends

55%

Dividend payout ratio: 54.51% of net profits

Recently HSBC has paid out, on average, around 54.51% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.08% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), HSBC shareholders could enjoy a 3.08% return on their shares, in the form of dividend payments. In HSBC's case, that would currently equate to about 0.22p per share.

HSBC's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 18 August 2021 (the "ex-dividend date").

Have HSBC's shares ever split?

HSBC's shares were split on a 3:1 basis on 4 July 1999. So if you had owned 1 share the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your HSBC shares – just the quantity. However, indirectly, the new 66.7% lower share price could have impacted the market appetite for HSBC shares which in turn could have impacted HSBC's share price.

HSBC share price volatility

Over the last 12 months, HSBC's shares have ranged in value from as little as 329.55p up to 519.2804p. A popular way to gauge a stock's volatility is its "beta".

HSBA.LSE volatility(beta: 0.68)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while HSBC's is 0.6842. This would suggest that HSBC's shares are less volatile than average (for this exchange).

HSBC overview

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking products and services, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services for ultra high net worth individuals; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services, as well as commercial cards, and international trade and receivables finance services; foreign exchange products; and capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services, as well as engages in principal investment activities. It serves government, corporate and institutional clients, and private investors.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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