Hang Seng Bank Limited
Hang Seng Bank Limited Fundamental Analysis
Hang Seng Bank Limited (HSNGY) shows moderate financial fundamentals with a PE ratio of 20.28, profit margin of 45.70%, and ROE of 9.20%. The company generates $31.1B 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 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HSNGY's fundamental strength across five key dimensions:
Efficiency Score
WeakHSNGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHSNGY trades at attractive valuation levels.
Growth Score
ModerateHSNGY shows steady but slowing expansion.
Financial Health Score
ModerateHSNGY shows balanced financial health with some risks.
Profitability Score
ModerateHSNGY maintains healthy but balanced margins.
Key Financial Metrics
Is HSNGY Expensive or Cheap?
P/E Ratio
HSNGY trades at 20.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HSNGY's PEG of -0.14 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 382.23 times EBITDA. This signals the market has high growth expectations.
How Well Does HSNGY Make Money?
Net Profit Margin
For every $100 in sales, Hang Seng Bank Limited keeps $45.70 as profit after all expenses.
Operating Margin
Core operations generate 68.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.20 in profit for every $100 of shareholder equity.
ROA
Hang Seng Bank Limited generates $0.86 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 strong operating cash flow of $94.53B, reflecting robust business health.
Free Cash Flow
Hang Seng Bank Limited generates strong free cash flow of $92.90B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $49.60 in free cash annually.
FCF Yield
HSNGY converts 35.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.43
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
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HSNGY Stacks Against Its Sector Peers
| Metric | HSNGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.28 | 18.73 | Neutral |
| ROE | 9.20% | 847.00% | Weak |
| Net Margin | 45.70% | 2562.00% | Weak |
| Debt/Equity | 0.19 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.08 | 674.76 | Weak Liquidity |
| ROA | 0.86% | -21692.00% (disorted) | Weak |
HSNGY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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