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HSBC Holdings plc (HSEB)HSEB
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Upturn Advisory Summary
09/18/2024: HSEB (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 0% | Upturn Advisory Performance 1 | Avg. Invested days: 0 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 09/18/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 0% | Avg. Invested days: 0 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 535.63B USD |
Price to earnings Ratio 54.54 | 1Y Target Price - |
Dividends yield (FY) 7.45% | Basic EPS (TTM) - |
Volume (30-day avg) - | Beta - |
52 Weeks Range 26.18 - 26.18 | Updated Date 06/4/2020 |
Company Size Large-Cap Stock | Market Capitalization 535.63B USD | Price to earnings Ratio 54.54 | 1Y Target Price - |
Dividends yield (FY) 7.45% | Basic EPS (TTM) - | Volume (30-day avg) - | Beta - |
52 Weeks Range 26.18 - 26.18 | Updated Date 06/4/2020 |
Earnings Date
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Profitability
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Management Effectiveness
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Valuation
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Enterprise Value to Revenue - | Enterprise Value to EBITDA - |
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Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
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Analyst Ratings
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AI Summarization
HSBC Holdings plc: A Comprehensive Overview
Company Profile
History and Background:
HSBC Holdings plc (HSBC) is a global banking and financial services company, headquartered in London, England. Founded in 1865 in Hong Kong as the Hongkong and Shanghai Banking Corporation, HSBC has grown into one of the world's largest financial institutions, with operations in over 60 countries and territories. Its history is marked by expansion through acquisitions and a focus on international markets.
Core Business Areas:
HSBC offers a wide range of financial services, including:
- Retail Banking: Serving individual consumers with savings accounts, mortgages, credit cards, and personal loans.
- Commercial Banking: Providing financial services to businesses, including loans, cash management, and trade finance.
- Global Banking and Markets: Assisting corporations and institutions with investment banking, trading, and risk management.
- Wealth Management: Offering investment solutions and financial planning for affluent individuals and families.
Leadership and Corporate Structure:
The current CEO of HSBC is Noel Quinn, who was appointed in 2020. The company operates under a dual holding company structure, with HSBC Holdings plc incorporated in the UK and HSBC Asia Pacific Holdings Limited incorporated in Hong Kong.
Top Products and Market Share:
Top Products:
- Retail Banking: Checking and savings accounts, credit cards, mortgages, personal loans, insurance products.
- Commercial Banking: Business loans, lines of credit, cash management services, trade finance, international payments.
- Global Banking and Markets: Investment banking, debt and equity capital markets, foreign exchange, treasury management, commodities trading.
- Wealth Management: Investment solutions, portfolio management, financial planning, estate planning.
Market Share:
- Global Retail Banking: 4.7% (3rd largest)
- Global Wealth Management: 5.8% (2nd largest)
- Global Commercial Banking: 6.1% (3rd largest)
Comparison:
HSBC faces competition from various regional and international institutions in different segments. While it holds a significant global market share, regional players can dominate specific markets.
Total Addressable Market (TAM):
Global Banking Industry: Estimated at USD 21.7 trillion in 2023, expected to reach USD 28.7 trillion by 2028. The TAM for HSBC covers its individual segments within this overall market.
Financial Performance:
Recent Financials:
(Based on the 2022 Annual Report)
- Revenue: USD 51.7 billion
- Net Income: USD 14.8 billion
- Profit Margin: 28.6%
- Earnings per Share (EPS): USD 0.78
Year-over-Year Growth:
- Revenue: +5%
- Net Income: +17%
- EPS: +18%
Financial Health:
- Strong balance sheet with a capital adequacy ratio of 15.6%
- Healthy cash flow from operations
Dividends and Shareholder Returns:
Dividend History:
- Consistent dividend payments over the past 10 years
- Recent dividend yield: 3.9%
- Payout ratio: 45%
Shareholder Returns:
- Total shareholder return for the past year: 4.7%
- 5-year total shareholder return: 25.6%
- 10-year total shareholder return: 45.8%
Growth Trajectory:
Historical Growth:
- Revenue CAGR of 3.5% over the past 5 years
- Net Income CAGR of 5.2% over the past 5 years
- EPS CAGR of 5.9% over the past 5 years
Future Growth Prospects:
- Expanding in Asia and emerging markets
- Investing in digital innovation
- Focusing on wealth management and insurance
Market Dynamics:
Industry Trends:
- Digitalization and the rise of FinTech
- Increasing regulatory scrutiny
- Growing demand for sustainable finance
HSBC's Positioning:
- Strong brand recognition and global reach
- Diversified business model
- Commitment to innovation
Competitors:
- Major competitors include:
- JPMorgan Chase & Co. (JPM)
- Citigroup Inc. (C)
- Bank of America Corp. (BAC)
- Wells Fargo & Co. (WFC)
- BNP Paribas (BNPP)
- UBS Group AG (UBS)
- Market share comparison: HSBC ranks among the top 5 in most segments, but competitive landscape varies regionally.
Potential Challenges and Opportunities:
Challenges:
- Intense competition
- Economic downturns
- Regulatory changes
Opportunities:
- Growth in emerging markets
- Adoption of new technologies
- Expanding wealth management business
Recent Acquisitions:
- HSBC Life (Taiwan) acquisition (2021): Expands wealth management presence in Asia, complements existing insurance business.
- AXA Singapore acquisition (2021): Enhances wealth and insurance offerings in Southeast Asia.
- HSBC Bank USA branches sale (2022): Focuses on digital strategy in the US market.
AI-Based Fundamental Rating:
Rating: 7.5 out of 10
Analysis:
HSBC demonstrates strong financials, a diversified business model, and a commitment to innovation. However, it faces challenges from competition and regulatory pressures. Its long-term prospects hinge on successful execution of growth strategies and navigating market dynamics.
Sources and Disclaimers:
Sources:
- HSBC Annual Report 2022
- Company website
- Bloomberg
- S&P Global Market Intelligence
Disclaimer:
This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About HSBC Holdings plc
Exchange | NYSE | Headquaters | - |
IPO Launch date | - | CEO | - |
Sector | Other | Website | |
Industry | Other | Full time employees | 228687 |
Headquaters | - | ||
CEO | - | ||
Website | |||
Website | |||
Full time employees | 228687 |
HSBC Holdings plc provides banking and financial products and services. 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, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services. The Commercial Banking segment provides services and financing for buyers and suppliers throughout the trade cycle; liquidity and cash management services; capital financing, including debt, equity, and advisory services; and insurance and investment products, such as business and financial protection, trade insurance, employee benefits, corporate wealth management, and other commercial risk insurance products to small enterprises, mid-market companies, and multinationals. The Global Banking and Markets segment is involved in the provision of advisory, financing, prime, research and analysis, securities, trading and sales, and transaction banking services to corporates, financial institutions, and resources and energy groups. The Global Private Banking segment provides private banking, and investment and wealth management services to business owners, entrepreneurs, and senior executives and their families. The company operates through approximately 3,900 offices in 67 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
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