HSBC
HSBC Holdings PLC
$101.13
▲ 2.1%Updated Today 3:42 PM ET
HSBC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 68/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 62.2% over the last 12 months
Market Cap
$316.65B
P/E
14.87x
Forward P/E (est.)
13.24x
ROE
9.0%
Revenue Growth
109.1%
EPS Growth
12.3%
Profit Margin
34.2%
FCF Yield
—
Debt / Equity
2.55x
ROIC
11.0%
Interest Coverage
0.44x
Current Ratio
—
Dividend Yield
3.8%
Implied Growth (rev. DCF)
0.1%
Rating Score
68/100
HSBC Holdings PLC (HSBC) is a mega-cap company in the Banking industry, part of the Financials sector of the S&P 500, with a market value around $316.65B.
In its latest reported year it generated about $97.87B in revenue and $23.13B in net profit.
Our model rates HSBC Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
28.6% average over the last 3 years
±9.1 pts around 27.6% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 9 of 10 years
11.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HSBC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HSBC trades near $101.13, above its 50-day average ($92.20) and 200-day average ($81.96). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. HSBC's is $1.71 (~1.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HSBC found buyers near $86.12 (support) and sellers near $98.54 (resistance); its 52-week range is $60.52–$98.54. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.4× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
28.2%
Revenue moved from $42.41B in 2016 to $97.87B in 2025, a 9.7% compound annual growth rate. The most recent year grew a strong 109.1% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
—
Operating Margin
28.6%
Net Margin
23.6%
ROE
9.0%
HSBC Holdings PLC keeps about 34.2% of each sales dollar as net profit. Return on equity is 9.0% and return on invested capital about 11.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
2.55x
Leverage: debt-to-equity is 2.6x, and operating profit covers interest about 0.4x. That is elevated leverage, which raises risk if earnings or rates move against it.
Operating CF
$29.77B
Free Cash Flow
$28.32B
FCF Margin
28.9%
In the latest year HSBC Holdings PLC produced about $29.77B of operating cash flow and $28.32B of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
Coverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
3.8%
Per share (latest FY)
$0.66
Total paid (latest FY)
$13.48B
History on record
10 years
dividend uses 48% of free cash flow
58% of net income paid out
no current raise streak
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
14.87x
P/S
2x
P/B
1.36x
EV / EBITDA
—
HSBC trades at 14.9x trailing earnings (about 13.2x on estimated forward earnings), 2.0x sales, and 1.4x book value. Reverse-engineering today's price implies the market expects roughly 0.1% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$68.28
Current price
$101.13
Starting FCF (latest 10-K)
$28.32B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where HSBC sits versus its Financials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How HSBC stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
In the Financials sector (289 S&P 500 companies), HSBC ranks #51 of 289 by our overall rating. It trades at roughly in line versus the sector on earnings (14.9x P/E vs. 15.3x median) with a lower return on equity (9.0% vs. 13.6%) and faster revenue growth (109.1% vs. 15.9%).
P/E vs sector
14.9x
median 15.3x
ROE vs sector
9.0%
median 13.6%
Growth vs sector
109.1%
median 15.9%
Sector rank
#51
of 289 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size. Sector median is across all 289 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $101.13 today · expected CAGR 34% – 48%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $141.91B | $205.78B | $298.38B | $432.64B | $627.33B |
| Net income | $34.06B | $49.39B | $71.61B | $103.83B | $150.56B |
| EPS | $10.88 | $15.77 | $22.87 | $33.16 | $48.08 |
| Share price (low) | $97.90 | $141.95 | $205.83 | $298.46 | $432.76 |
| Share price (high) | $163.16 | $236.59 | $343.05 | $497.43 | $721.27 |
| CAGR (low–high) | -3% / 61% | 18% / 53% | 27% / 50% | 31% / 49% | 34% / 48% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HSBC:
- Revenue is growing 109.1% a year, a sign of real demand.
- High net margins (34.2%) point to pricing power or efficiency.
- Pays a 3.8% dividend on top of any price gains.
- Our model's overall read is Favorable (68/100).
The case against HSBC:
- Elevated leverage (debt/equity 2.6x) adds financial risk.
- Interest coverage is thin (0.4x), so debt costs bite.
Balance-sheet risk — debt/equity of 2.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: HSBC Holdings PLC is a mega-cap financials business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 14.9x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 21 Wall Street analysts covering HSBC recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
HSBC's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
HSBC — frequently asked questions
Is HSBC a good stock to buy?
We don't give buy or sell advice. Our model rates HSBC Holdings PLC Favorable (68/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is HSBC's rating on The Stocks School?
HSBC Holdings PLC currently scores 68/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does HSBC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from HSBC Holdings PLC's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for HSBC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this HSBC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HSBC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.