Is HSBC Holdings Stock a Good Investment?
HSBC Holdings Investment Advice | HSBC |
- Examine HSBC Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research HSBC Holdings' leadership team and their track record. Good management can help HSBC Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Banks space and any emerging trends that could impact HSBC Holdings' business and its evolving consumer preferences.
- Compare HSBC Holdings' performance and market position to its competitors. Analyze how HSBC Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if HSBC Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about HSBC Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in HSBC Holdings PLC stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if HSBC Holdings PLC is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine HSBC Holdings Stock
Researching HSBC Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book (P/B) ratio of 0.91. Some equities with similar Price to Book (P/B) outperform the market in the long run. HSBC Holdings PLC recorded earning per share (EPS) of 6.1. The entity last dividend was issued on the 8th of November 2024. The firm had 6:1 split on the 7th of July 1999.
To determine if HSBC Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding HSBC Holdings' research are outlined below:
| HSBC Holdings PLC has a strong financial position based on the latest SEC filings |
HSBC Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in HSBC Holdings PLC. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to HSBC Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
HSBC Holdings' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 174.52 B.HSBC Holdings' profitablity analysis
The company has Profit Margin (PM) of 0.41 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.49 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.49.Determining HSBC Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if HSBC Holdings is a good buy. For example, gross profit margin measures HSBC Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of HSBC Holdings' profitability and make more informed investment decisions.
Please note, the presentation of HSBC Holdings' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, HSBC Holdings' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of HSBC Holdings' management manipulating its earnings.
Basic technical analysis of HSBC Stock
As of the 13th of December 2024, HSBC Holdings owns the Market Risk Adjusted Performance of 1.12, downside deviation of 1.42, and Semi Deviation of 1.18. HSBC Holdings PLC technical analysis makes it possible for you to employ past data patterns with the intention to determine a pattern that calculates the direction of the firm's future prices.HSBC Holdings' Outstanding Corporate Bonds
HSBC Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. HSBC Holdings PLC uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most HSBC bonds can be classified according to their maturity, which is the date when HSBC Holdings PLC has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| HSBC HLDGS PLC Corp BondUS404280AE90 | View | |
| HSBC HLDGS PLC Corp BondUS404280AF65 | View | |
| HSBC HLDGS PLC Corp BondUS404280AG49 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC HLDGS PLC Corp BondUS404280AM17 | View | |
| HSBC HLDGS PLC Corp BondUS404280AH22 | View | |
| HSBC HLDGS PLC Corp BondUS404280AJ87 | View | |
| HSBC 6375 Corp BondUS404280AT69 | View |
Understand HSBC Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing HSBC Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1167 | |||
| Market Risk Adjusted Performance | 1.12 | |||
| Mean Deviation | 0.8974 | |||
| Semi Deviation | 1.18 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 644.06 | |||
| Standard Deviation | 1.23 | |||
| Variance | 1.51 | |||
| Information Ratio | 0.0739 | |||
| Jensen Alpha | 0.1662 | |||
| Total Risk Alpha | 0.0281 | |||
| Sortino Ratio | 0.0641 | |||
| Treynor Ratio | 1.11 | |||
| Maximum Drawdown | 6.87 | |||
| Value At Risk | (1.32) | |||
| Potential Upside | 1.82 | |||
| Downside Variance | 2.01 | |||
| Semi Variance | 1.4 | |||
| Expected Short fall | (0.94) | |||
| Skewness | (0.88) | |||
| Kurtosis | 2.68 |
| Risk Adjusted Performance | 0.1167 | |||
| Market Risk Adjusted Performance | 1.12 | |||
| Mean Deviation | 0.8974 | |||
| Semi Deviation | 1.18 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 644.06 | |||
| Standard Deviation | 1.23 | |||
| Variance | 1.51 | |||
| Information Ratio | 0.0739 | |||
| Jensen Alpha | 0.1662 | |||
| Total Risk Alpha | 0.0281 | |||
| Sortino Ratio | 0.0641 | |||
| Treynor Ratio | 1.11 | |||
| Maximum Drawdown | 6.87 | |||
| Value At Risk | (1.32) | |||
| Potential Upside | 1.82 | |||
| Downside Variance | 2.01 | |||
| Semi Variance | 1.4 | |||
| Expected Short fall | (0.94) | |||
| Skewness | (0.88) | |||
| Kurtosis | 2.68 |
Consider HSBC Holdings' intraday indicators
HSBC Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of HSBC Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 13103.74 | |||
| Daily Balance Of Power | 0.4681 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 48.53 | |||
| Day Typical Price | 48.55 | |||
| Price Action Indicator | 0.19 | |||
| Period Momentum Indicator | 0.22 |
HSBC Stock media impact
Far too much social signal, news, headlines, and media speculation about HSBC Holdings that are available to investors today. That information is available publicly through HSBC media outlets and privately through word of mouth or via HSBC internal channels. However, regardless of the origin, that massive amount of HSBC data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of HSBC Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of HSBC Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to HSBC Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive HSBC Holdings alpha.
HSBC Holdings Corporate Directors
| David Nish | Senior Independent Non-Executive Director | Profile | |
| Pauline Mohr | Independent Non-Executive Director | Profile | |
| Henri Castries | Non-Executive Independent Director | Profile | |
| Ewen Stevenson | Group Chief Financial Officer, Executive Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HSBC Holdings PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HSBC Holdings. If investors know HSBC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HSBC Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of HSBC Holdings PLC is measured differently than its book value, which is the value of HSBC that is recorded on the company's balance sheet. Investors also form their own opinion of HSBC Holdings' value that differs from its market value or its book value, called intrinsic value, which is HSBC Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HSBC Holdings' market value can be influenced by many factors that don't directly affect HSBC Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between HSBC Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if HSBC Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HSBC Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.