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Banco Santander SA (SAN)
NYSE:SAN
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Banco Santander SA
(NYSE:SAN)
77Outperform
Banco Santander SA (SAN) vs. S&P 500 (SPY)
Market Cap
$104.36B
Dividend Yield2.28%
Average Volume (3M)6.01M
Price to Earnings (P/E)8.1
Beta (1Y)0.70
Revenue Growth11.61%
EPS Growth24.35%
CountryUS
Employees199,958
SectorFinancial
Sector Strength84
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.89
Shares Outstanding15,152,492,000
10 Day Avg. Volume4,130,827
30 Day Avg. Volume6,008,682
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)N/A
Price to Sales (P/S)1.55
Price to Cash Flow (P/CF)0.50
P/FCF Ratio0.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Banco Santander SA Business Overview & Revenue Model
Company DescriptionBanco Santander, S.A. provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies worldwide. It offers demand and time deposits, and current and savings accounts; mortgages, consumer finance, syndicated corporate loans, structured financing, cash management, export and agency finance, trade and working capital solutions, and corporate finance; and insurance products. The company also provides cash, asset, and wealth management; and private banking services. In addition, it is involved in the corporate banking; treasury, risk hedging, foreign trade, confirming, custody, and investment banking activities. The company operates through a network of 9,879 branches. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.
How the Company Makes MoneyBanco Santander SA generates revenue primarily through its core banking activities, which include interest income from loans and advances to customers, fees and commissions from banking services, and trading income. A significant portion of its revenue comes from retail banking, where it earns interest on mortgage loans, personal loans, and credit cards. Additionally, the bank generates fee-based income from services such as account maintenance, investment advisory, and asset management. Corporate and investment banking contribute to its earnings through underwriting, advisory, and capital markets activities. Santander also benefits from strategic partnerships and alliances that enhance its product offerings and market reach. The bank's diversified geographical presence helps mitigate risks and stabilize income across different economic cycles.
Banco Santander SA Financial Statement Overview
Summary
Banco Santander SA demonstrates strong profitability and effective operational management, as evidenced by healthy margins. However, the decline in revenue and challenges in cash flow generation could pose risks. The balance sheet remains robust, with moderate leverage and good return on equity, but careful monitoring of cash flow dynamics is necessary to sustain growth and operational efficiency.Income Statement
Banco Santander SA shows robust profitability with a solid net profit margin of 24.75% for 2023, which is a significant improvement from the previous year. The gross profit margin remains strong, indicating efficient cost management. However, revenue has decreased by 17.45% from 2022, suggesting some challenges in top-line growth. EBIT margin is healthy at 44.48%, demonstrating effective operational management.75
Positive
Balance Sheet
The company maintains a stable financial position with a debt-to-equity ratio of 3.26, reflecting moderate leverage typical for the banking industry. The return on equity stands at 11.60%, indicating good profitability relative to shareholder investment. The equity ratio is 5.31%, showing a sound capital structure. Overall, the balance sheet reflects stability and efficient capital management.78
Positive
Cash Flow
Free cash flow has significantly declined, leading to a negative growth rate, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.45, suggesting lower cash generation relative to profits. The free cash flow to net income ratio is negative, raising concerns about cash sufficiency for operations and growth investments.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 97.22B | 44.76B | 54.22B | 48.41B | 46.81B | 52.32B | Gross Profit |
| 97.22B | 59.59B | 54.22B | 48.41B | 46.81B | 52.32B | EBIT |
| 12.45B | 19.91B | 46.90B | 13.02B | -3.14B | 10.94B | EBITDA |
| 14.92B | 0.00 | 0.00 | 16.87B | 0.00 | 15.22B | Net Income Common Stockholders |
| 11.89B | 11.08B | 9.61B | 8.12B | -7.71B | 6.51B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 79.20B | 220.34B | 223.07B | 210.69B | 153.84B | 101.07B | Total Assets |
| 1.28T | 1.80T | 1.73T | 1.60T | 1.51T | 1.52T | Total Debt |
| 218.57B | 310.98B | 282.96B | 249.02B | 235.27B | 261.98B | Net Debt |
| 139.37B | 64.08B | 59.89B | 38.33B | 81.43B | 160.91B | Total Liabilities |
| 218.57B | 1.69T | 1.64T | 1.50T | 1.42T | 1.41T | Stockholders Equity |
| 73.14B | 95.42B | 89.10B | 86.93B | 81.48B | 100.07B |
| Cash Flow | Free Cash Flow | ||||
| 3.16B | -8.63B | 16.87B | 45.29B | 57.63B | -10.75B | Operating Cash Flow |
| 3.16B | 5.01B | 27.71B | 56.69B | 66.15B | 3.39B | Investing Cash Flow |
| 0.00 | -5.37B | -3.90B | -3.71B | -7.22B | -7.23B | Financing Cash Flow |
| 0.00 | -2.06B | -9.96B | -1.32B | -1.91B | -10.12B |
Banco Santander SA Technical Analysis
Neutral
6.57
Price Trends
6.20
Positive
5.45
Positive
5.11
Positive
Market Momentum
0.22
Positive
53.67
Neutral
22.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAN, the sentiment is Neutral. The current price of 6.57 is below the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.20, and above the 200-day MA of 5.11, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 22.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SAN.
Banco Santander SA Risk Analysis
Banco Santander SA disclosed 41 risk factors in its most recent earnings report. Banco Santander SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Santander SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $80.02B | 7.57 | 18.77% | 4.33% | 10.29% | 28.54% | |
81 Outperform | $202.85B | 9.17 | 13.74% | 6.13% | 6.79% | 8.57% | |
81 Outperform | $54.90B | 8.36 | 9.14% | 2.98% | 8.58% | 35.39% | |
77 Outperform | $104.36B | 8.13 | 13.16% | 2.28% | 11.61% | 24.35% | |
75 Outperform | $61.53B | 9.16 | 12.75% | 5.35% | 4.07% | 9.97% | |
66 Neutral | $132.77B | 11.87 | 6.04% | 3.50% | 8.20% | 49.26% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% |
* Financial Sector Average
Performance Comparison
SAN
Banco Santander SA
6.57
1.82
38.32%
BBVA
Banco Bilbao
13.66
2.48
22.18%
BCS
Barclays
14.31
4.86
51.43%
C
Citigroup
63.05
3.51
5.90%
HSBC
HSBC Holdings
53.50
16.19
43.39%
ING
ING Groep
19.00
3.29
20.94%
Banco Santander SA Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 28.07% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, emphasizing record-breaking profit, strong customer and revenue growth, significant efficiency improvements, and substantial shareholder returns. While there were challenges related to currency devaluation and interest rates, these were largely offset by the company's strategic advantages.Highlights
Record-Breaking Profit
Profit reached a record €12.6 billion, supported by both strong revenue growth and customer growth, adding 8 million customers.
Strong Capital Ratio
Santander's capital ratio ended the year at an all-time high of 12.8%, reflecting strong capital generation.
Significant Efficiency Improvement
Efficiency improved by more than 2 percentage points, with profitability RoTE increasing to 16.3%.
Successful Customer Growth
Santander grew 8 million customers across global businesses, contributing to strong revenue growth.
Revenue and Fee Income Growth
Top-line revenue grew 10% in constant euros, and fee income increased by 11%, driven by network benefits.
Significant Shareholder Returns
TNAV and dividend per share grew by 14%, and share buybacks resulted in a 15% reduction of outstanding shares.
Lowlights
Currency Devaluation Challenges
Currency devaluation in some markets, such as the Brazilian Real, posed challenges, though offset by the appreciation of the U.S. dollar.
Impact of Higher Interest Rates
Higher interest rates created challenges in retail franchises in Europe, affecting certain geographies negatively.
Company Guidance
During Santander's 2024 results presentation, the bank reported a record profit of €12.6 billion, marking the third consecutive year of record results. Santander added 8 million customers, contributing to a 10% increase in top-line revenue, and achieved a return on tangible equity (RoTE) of 16.3%. The capital ratio reached an all-time high of 12.8%, reflecting strong capital generation. Shareholder value creation was evident with TNAV and dividend per share rising by 14%. The presentation highlighted the bank's efficiency improvements, with a reduction in cost-to-income ratio to 41.8% and a cost of risk at 1.15%, better than initial guidance. The strategic focus on diversification and technology-driven transformation, including the ONE Transformation initiative, was emphasized as key to sustaining growth and profitability, with expectations to continue this momentum into 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.