Hang Seng Bank Limited
Hang Seng Bank Limited Fundamental Analysis
Hang Seng Bank Limited (0011.HK) shows moderate financial fundamentals with a PE ratio of 21.27, profit margin of 25.68%, and ROE of 8.79%. The company generates $52.9B in annual revenue with strong year-over-year growth of 20.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0011.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0011.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0011.HK trades at attractive valuation levels.
Growth Score
Moderate0011.HK shows steady but slowing expansion.
Financial Health Score
Moderate0011.HK shows balanced financial health with some risks.
Profitability Score
Weak0011.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0011.HK Expensive or Cheap?
P/E Ratio
0011.HK trades at 21.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0011.HK's PEG of -1.17 indicates potential undervaluation.
Price to Book
The market values Hang Seng Bank Limited at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.23 times EBITDA. This signals the market has high growth expectations.
How Well Does 0011.HK Make Money?
Net Profit Margin
For every $100 in sales, Hang Seng Bank Limited keeps $25.68 as profit after all expenses.
Operating Margin
Core operations generate 33.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.79 in profit for every $100 of shareholder equity.
ROA
Hang Seng Bank Limited generates $0.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hang Seng Bank Limited generates limited operating cash flow of $-37.51B, signaling weaker underlying cash strength.
Free Cash Flow
Hang Seng Bank Limited generates weak or negative free cash flow of $-39.13B, restricting financial flexibility.
FCF Per Share
Each share generates $-20.89 in free cash annually.
FCF Yield
0011.HK converts -14.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 0011.HK Stacks Against Its Sector Peers
| Metric | 0011.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.27 | 18.59 | Worse (Expensive) |
| ROE | 8.79% | 801.00% | Weak |
| Net Margin | 25.68% | -498.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 0.08 | 661.40 | Weak Liquidity |
| ROA | 0.82% | -21324.00% (disorted) | Weak |
0011.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hang Seng Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-46.23%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-25.37%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
379.52%
Industry Style: Value, Dividend, Cyclical
High Growth