Hong Kong · HKEX · 00005
HSBC (00005) stock analysis: valuation and financials
银行
HK$150.70 +1.8% Price as of Oct 13, 2026
Asia-weighted global bank, narrow moat, 35.7% TTM net margin and 10.9% ROE, but revenue growth stalled at 0.9% in FY2025; 13.4x P/E, value rests on capital return.
- Market cap
- HK$2.6T
- P/E
- 13.4x
- EV/Sales
- —
- FCF yield
- —
- Dividend yield
- 3.9%
- 52-week range
- HK$100.90 – HK$168.20
Research as of Oct 14, 2026
Business quality scorecard
- Growth25
- Capital allocation100
- Valuation93
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Retail, commercial and institutional clients across 87 countries pay HSBC net interest spreads plus transaction, advisory and wealth fees; on group FY2025 revenue of 452.8B CNY and net income of 148.3B CNY (32.8% net margin) the profit engine sits in Asia retail and wealth plus commercial banking, though segment profit is not disclosed in the inputs.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥321.8B | ¥327.6B | ¥443.5B | ¥448.8B | ¥452.8B |
| Revenue growth | +18.5% | +1.8% | +35.4% | +1.2% | +0.9% |
| Net income | ¥80.4B | ¥99.9B | ¥158.9B | ¥164.7B | ¥148.3B |
Amounts in CNY · What is free cash flow?
Margins Gross/operating margins not disclosed for this bank. Net margin fell to 32.75% in FY2025 from 36.7% in FY2024, then recovered to 35.72% TTM. FY2025 SG&A rose 11.4% to CNY84.1B while revenue grew 0.9%, the main pressure.
- Cash flow WatchOCF and FCF are not disclosed, so cash conversion and FCF margin cannot be verified; TTM net income was CNY165.5B on CNY463.5B revenue, a 35.7% net margin.
- Debt LowReported debt-to-equity is 0 and TTM equity is CNY1.34T; no net debt or net debt/EBITDA is disclosed for this financial issuer.
Management and track record
- Management AdequateCapital returns are the stand-out: $340.7B buybacks and $393.3B dividends over five years versus $120.4B of acquisitions; diluted shares fell from 20.52B to 17.59B (-4.1% CAGR) with negligible share-based comp ($2.98B, FY2021 only).
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.