Stock Analysis
HSBC Holdings PLCHSBC
P/E 15.35×· 5Y range 3.98–17.51×· top 6% of history
Sector: Financial Services
AnalystsHold22 analystsP/E 15.3× sits at the 94th percentile of its 5.086926762491444-year history.
Cash covers 27% of debt · FY 2025.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Growth77
- Profitability62
Risks
- Valuation22
- Quality25
Mixed fundamentals at a demanding price.
What's happening with HSBC
Profile
Strong growth; valuation, earnings quality, moat and financial health lag behind.
How is each axis scored?
- Valuation22/100 · Weak
- P/E vs own history (94th pct)0/25
- FCF yield (-22.5%)0/25
- P/S (5.1x)12/25
- EV/EBIT (n/a)10/25
- Growth77/100 · Strong
- Revenue CAGR (6.1%)12/25
- Net income CAGR (13.7%)20/25
- EPS CAGR 5Y (17.8%)20/25
- Fwd implied growth (39.1%)25/25
- Profitability62/100 · Moderate
- ROIC (n/a)0/25
- ROE (10.7%)12/25
- Net margin (33.4%)25/25
- Operating margin (40.4%)25/25
- Financial Health40/100 · Weak
- Altman Z (0.09)3/25
- Current ratio (n/a)0/25
- Interest coverage (no interest expense)25/25
- Net cash / debt (D/A 18%)12/25
- Quality25/100 · Weak
- Piotroski F (2/9)5/25
- Beneish M (-2.37)20/25
- FCF conversion (-344%)0/25
- Margin stability (n/a)0/25
- Moat30/100 · Weak
- ROIC >12% years (n/a)0/25
- Median gross margin (n/a)0/25
- FCF-positive years (2/5 yrs)5/25
- Worst-year net margin (worst 25.3%)25/25
Risk Flags
- ⚠Altman Z 0.1 — distress-zone balance sheet
- ⚠Negative FCF margin (-1.1%) — burning cash
- ⚠P/E 15.3× at top 6% of 5-year history
About HSBC Holdings PLC
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. Show more
It operates in over 50 countries with over 200,000 full-time staff. Hong Kong and the United Kingdom are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.
Employees: 206,161 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
22EP/E (TTM)15.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 4.0x–17.5x · 94th pct
P/FCF3.5xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield-22.5%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -88.1%–110.9% · 35th pct
P/S (TTM)5.10xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 1.3x–5.8x · 94th pct
EV/EBITDA—
Enterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales—
Enterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E11.0xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio1.64xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.72B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield4.47%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio56.6%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
62BROIC—
NOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE10.7%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA1.1%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin33.4%A
Grade A: HighNet Income / Revenue
Operating Margin—
TTM EBIT / TTM Revenue
Gross Margin—
Gross Profit / Revenue
FCF Margin-114.7%D
Grade D: LowFCF / Revenue
True FCF Margin-114.7%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
77B+Revenue CAGR6.1%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR13.7%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)17.8%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth39.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
40D+Altman Z-Score0.09D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio—
Current Assets/Liabilities
Quick Ratio—
(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage—
EBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity4.25xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.27xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
25EPiotroski F-Score2/9D
Grade D: WeakFinancial strength 0–9. >7 Strong
Beneish M-Score-2.37A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion-343.6%D
Grade D: PoorFCF / Net Income
Margin Stability—
EBIT margin std deviation. Lower = stable
Capex / Revenue3.1%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover—
Revenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 5 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Palomaki Daniel Scott Filed | Palomaki Daniel Scott | Grant / award | +76 | |
Palomaki Daniel Scott Filed | Palomaki Daniel Scott | Grant / award | +88 | |
Palomaki Daniel Scott Filed | Palomaki Daniel Scott | SellOpen market sale | -23123 | |
Bingham Jonathan Filed | Bingham Jonathan | BuyOpen market buy | +13 | |
Bingham Jonathan Filed | Bingham Jonathan | Grant / award | +792 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
30DROIC >12% Years—
Share of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)—
Median annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years2/5 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor25.3%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$6.16
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$16.46
Cash & short-term investments per share (Finnhub)
Book Value / Share$11.45
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$837.58B
Total debt obligations (short + long term)
Cash & Equiv.$227.80B
Cash and short-term investments
Net Debt$609.78B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$197.08B
Shareholders' equity (book value)
Asset / Liability—
Total Assets / Total Liabilities
Market
Market Cap$322.50B
Current Market Capitalization
Beta1.47C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Dec 2025 · Ratio snapshot Oct 17, 2026
Key Insights: HSBC Holdings PLC (HSBC)
HSBC Holdings PLC meets only 2 of 9 Piotroski F-Score criteria — a sign of weak underlying fundamentals. Altman Z-Score of 0.09 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.37 suggests a low likelihood of earnings manipulation. Free-cash-flow margin is negative (-115%) — the business currently burns cash.
- Company has negative FCF, making debt repayment from operations difficult.
- At a valuation score of 22/100, HSBC trades at a premium to its historical multiples (P/E 15.3).
- The stock currently yields 4.5% in dividends.
See how HSBC ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all HSBC moves →Frequently Asked Questions about HSBC
What is the current HSBC Holdings PLC (HSBC) stock price?
HSBC is trading at $94.57 at the last market close, up 0.03% on the session. PreMarketPrice tracks HSBC pre-market, intraday and after-hours prices.
Is HSBC stock a buy right now?
PreMarketPrice's quantitative model rates HSBC Holdings PLC's financial health at 40/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is HSBC stock overvalued?
HSBC Holdings PLC trades at a trailing P/E of 15.3 and our valuation score rates it 22/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does HSBC Holdings PLC report earnings?
No confirmed earnings date is currently scheduled for HSBC. The Earnings section lists recent reports and updates as dates are announced.
What sector does HSBC Holdings PLC operate in?
HSBC Holdings PLC operates in the Financial Services sector. The Related Stocks section lists sector peers for comparison.
What does HSBC Holdings PLC do?
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide.
About HSBC Holdings PLC (HSBC) Stock
HSBC Holdings PLC (HSBC) is a US-listed stock operating in the Financial Services sector. As of the latest update, HSBC Holdings PLC is trading at $94.57, up 0.03% on the day with a market capitalization of $322.5 billion. The financial health score for HSBC is 40/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for HSBC stock.
HSBC Stock Analysis & Key Metrics
On PreMarketPrice, you can track HSBC Holdings PLC (HSBC) across multiple dimensions:
- Pre-market price & movement: Real-time HSBC stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for HSBC with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for HSBC Holdings PLC across multiple reporting periods.
- Financial health score: A composite score of 40/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for HSBC.
- Sector peers: Compare HSBC against 4 other financial services stocks on key financial metrics.
Is HSBC a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate HSBC Holdings PLC (HSBC) as an investment. The financial health score of 40/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.HSBC Holdings PLC (HSBC) trades on NYSE. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.