HSBC Holdings plc (HSBA) is a leading banks-diversified business based in the UK. It opened the day at 393.25p after a previous close of 394.75p. During the day the price has varied from a low of 387.55p to a high of 398.6p. The latest price was 387.75p (25 minute delay). HSBC is listed on the London Stock Exchange (LSE) and employs 230,317 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, HSBC's share price has had significant negative movement.
Its last market close was 309.25p, which is 44.99% down on its pre-crash value of 562.2p and 39.95% down on the lowest point reached during the March crash when the shares fell as low as 432.8p.
If you had bought £1,000 worth of HSBC shares at the start of February 2020, those shares 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 £556.50.
|52-week range||281.5p - 599.2232p|
|50-day moving average||393.4706p|
|200-day moving average||353.0172p|
|Wall St. target price||9.2p|
|Dividend yield||0.4p (5.71%)|
|Earnings per share (TTM)||17.9p|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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.
|1 week (2021-01-14)||-5.01%|
|1 month (2020-12-22)||1.03%|
|3 months (2020-10-22)||26.32%|
|6 months (2020-07-22)||4.66%|
|1 year (2020-01-21)||-33.79%|
|2 years (2019-01-21)||-40.35%|
|3 years (2018-01-19)||-50.82%|
|5 years (2016-01-21)||-17.71%|
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 current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, HSBC shares trade at around 27x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, HSBC's P/E ratio is best considered in relation to those of others within the banks-diversified industry or those of similar companies.
HSBC's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.5484. 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.
However, it's sensible to consider HSBC's PEG ratio in relation to those of similar companies.
|Revenue TTM||£43.7 billion|
|Operating margin TTM||28.67%|
|Gross profit TTM||£53.3 billion|
|Return on assets TTM||0.01%|
|Return on equity TTM||0.07%|
|Market capitalisation||£78.6 billion|
TTM: trailing 12 months
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.
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 01/01/2019) 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.).
To gain some more context, you can compare HSBC's total ESG risk score against those of similar companies.
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.
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.
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.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, 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.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||26.14|
|Total ESG percentile||40.25|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||3|
Dividend payout ratio: 122.59% of net profits
Recently HSBC has paid out, on average, around 122.59% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.71% 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 5.71% return on their shares, in the form of dividend payments. In HSBC's case, that would currently equate to about 0.4p 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 27 February 2020 (the "ex-dividend date").
HSBC's dividend payout ratio is perhaps best considered in relation to those of similar companies.
HSBC's shares were split on a 3:1 basis on 5 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.
Over the last 12 months, HSBC's shares have ranged in value from as little as 281.5p up to 599.2232p. A popular way to gauge a stock's volatility is its "beta".
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 0.585. This would suggest that HSBC's shares are less volatile than average (for this exchange).
To put HSBC's beta into context you can compare it against those of similar companies.
HSBC Holdings plc provides banking and financial products and services worldwide. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, such as current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services, including insurance and investment products, global asset management services, and financial planning services. 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; and foreign exchange products, and capital raising and advisory services to small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment is involved in the provision of financing, advisory, and transaction services, including credit, rates, foreign exchange, equities, money markets, and securities services, as well as principal investment activities to government, corporate and institutional clients, and private investors. The Global Private Banking segment provides a range of services to high net worth individuals and families with complex and international needs. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
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