HSBC Holdings' (LON:HSBA) investors will be pleased with their impressive 105% return over the last three years

Simply Wall St.07-29

By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the HSBC Holdings plc (LON:HSBA) ...

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For example, the HSBC Holdings plc (LON:HSBA) ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-holdings-lon-hsba-investors-072339955.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HSBC Holdings' (LON:HSBA) investors will be pleased with their impressive 105% return over the last three years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHSBC Holdings' (LON:HSBA) investors will be pleased with their impressive 105% return over the last three years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-29 15:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/hsbc-holdings-lon-hsba-investors-072339955.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the HSBC Holdings plc (LON:HSBA) ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-holdings-lon-hsba-investors-072339955.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2236285917.USD","symbol_name":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","start_time":0,"source_url":"https://finance.yahoo.com/news/hsbc-holdings-lon-hsba-investors-072339955.html","article_id":"2455687732","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/R4HVcCCtyPlm9gYjjc4j.w--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/2a1639030772eac023e5c72838c30758"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2455687732","pubTimestamp":1722237819,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the HSBC Holdings plc  share price is up 68% in the last three years, clearly besting the market return of around 2.0% . However, more recent returns haven't been as impressive as that, with the stock returning just 14% in the last year, including dividends.Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.It's nice to see that HSBC Holdings shareholders have received a total shareholder return of 14% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always inte","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","HSBC":"汇丰","BK4207":"综合性银行","PU6D.SI":"HSBC ADR 10","BK4585":"ETF&股票定投概念","BK4521":"英国银行股","BK4588":"碎股"},"translate_title":"汇丰控股(LON：HSBA)的投资者将对其过去三年令人印象深刻的105%回报率感到满意","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HSBC":1,"PU6D.SI":0.9},"content_text":"By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the HSBC Holdings plc (LON:HSBA) share price is up 68% in the last three years, clearly besting the market return of around 2.0% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 14% in the last year, including dividends. \n Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. \n Check out our latest analysis for HSBC Holdings \n To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. \n During three years of share price growth, HSBC Holdings achieved compound earnings per share growth of 60% per year. The average annual share price increase of 19% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time. We'd venture the lowish P/E ratio of 7.00 also reflects the negative sentiment around the stock. \n You can see below how EPS has changed over time (discover the exact values by clicking on the image). \n\n\n\n  LSE:HSBA Earnings Per Share Growth July 29th 2024\n \n\n We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. \nWhat About Dividends?\n It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of HSBC Holdings, it has a TSR of 105% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! \nA Different Perspective\n It's nice to see that HSBC Holdings shareholders have received a total shareholder return of 14% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand HSBC Holdings better, we need to consider many other factors. For instance, we've identified   2 warning signs for HSBC Holdings (1 is a bit unpleasant)  that you should be aware of. \n HSBC Holdings is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. \nPlease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. 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