HSBC Holdings plcHSBC
NYSE • Financial Services
$90.63
P/E
14.98
PEG
49.93
FCF Yield
—
Rev Growth YoY
0.0% YoY
Gross Margin
56.5%
Health Score
6/10
D/E Ratio
2.79
Confidence
MEDIUM
Business Snapshot
HSBC is a diversified international bank with primary revenue streams from retail and commercial banking, wealth management, and global banking and markets. It competes in the highly regulated banking sector as one of the largest global financial institutions, with a particularly strong presence in Asia-Pacific and Europe. The company reports TTM revenue of $129.29B, placing it in the large-cap tier. A defining characteristic is its extensive cross-border network and regulatory license moat, which provides diversified earnings across multiple geographies but also exposes it to varying economic cycles.
Financial Health
Gross margin improved significantly to 56.5% from 45.8% in the prior year, while net margin stands at a robust 34.2%. The balance sheet shows a high debt/equity ratio of 2.79x, typical for a bank but indicating substantial leverage, partially offset by a strong current ratio of 2.62x which signals ample short-term liquidity...
Risk Assessment
- DEBT — Debt/equity of 2.79x is elevated, indicating high financial leverage that could strain earnings in a rising rate or credit loss environment.
- REVENUE DECELERATION — Revenue growth YoY of -0.0% shows a stagnant top line, though QoQ growth of 19.8% provides a conflicting near-term signal.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — FMP DCF of $185.25 and Python DCF unavailable create uncertainty in the precise degree of undervaluation.
- EARNINGS QUALITY — While all four recent quarters beat estimates, near-zero earnings growth of 0.3% limits the magnitude of those beats....