HSBC Holdings plc(HSBC)Fundamental Analysis & FinancialsNYSE
Valuation, growth, margins and balance sheet
Valuation Snapshot
What the multiples imply about expectations
The market considers the company to be a large-cap player with a significant market presence. At current multiples, it trades moderately valued—balancing growth expectations with current fundamentals.
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears moderate. High ROE and moderate ROA reflect reasonably efficient capital use. Debt is manageable within acceptable ranges.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | Gross Margin | Net Margin |
|---|---|---|---|---|---|
| Q2 2026(Latest) | $19.04B | $7.91B | N/A | N/A | 41.6% |
| Q1 2026 | $19.13B | $7.35B | N/A | N/A | 38.4% |
| Q4 2025 | $17.72B | $4.94B | N/A | N/A | 27.9% |
| Q3 2025 | $17.90B | $5.28B | N/A | N/A | 29.5% |
| Q2 2025 | $17.66B | $4.73B | N/A | N/A | 26.8% |
| Q1 2025 | $17.74B | $7.32B | N/A | N/A | 41.3% |
Key Insights:
- Revenue decreased by 0.4% from previous quarter
- Net margin of 41.6% indicates strong profitability
Financial Efficiency
Utilization and collections performance
Asset Turnover 0.02 indicates low efficiency. ROIC 4.7% highlights weak capital returns.
Efficiency Metrics
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Mixed efficiency profile requiring targeted improvements
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Excellent margin structure with strong bottom-line profitability
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
-$70.56B
Cash from core operations
Free Cash Flow (TTM)
—
Available after capex
Financial Position & Liquidity
Current Ratio
—
—
Quick Ratio
—
—
Net Cash
$382.08B
Net creditor
Total Cash
$1.22T
Balance sheet cash
Total Debt
$837.58B
Outstanding borrowings
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
0.00%
Minimal stake
Institutional Ownership
2.49%
Modest participation
Short Ratio (Days)
4.6d
days to cover
Ownership structure shows limited insider stake and mixed institutional participation.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a sustainable dividend policy with a payout ratio of 53.6% (Cash flow coverage: -27.5x). Cash flow provides adequate dividend support with room for continued payments.
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