BME:SAN

Stock Analysis Report

Banco Santander

Executive Summary

Banco Santander, S.A., together with its subsidiaries, provides various retail and commercial banking products and services for individual and corporate clients worldwide.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Banco Santander's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

SAN

-2.8%

ES Banks

-0.4%

ES Market


1 Year Return

-8.4%

SAN

-8.8%

ES Banks

7.7%

ES Market

Return vs Industry: SAN matched the Spanish Banks industry which returned -8.2% over the past year.

Return vs Market: SAN underperformed the Spanish Market which returned 8.3% over the past year.


Shareholder returns

SANIndustryMarket
7 Day-3.6%-2.8%-0.4%
30 Day5.9%4.5%2.9%
90 Day4.7%3.2%6.5%
1 Year-5.4%-8.4%-5.6%-8.8%11.4%7.7%
3 Year-15.7%-25.1%-15.8%-24.7%17.5%6.4%
5 Year-29.5%-42.1%-33.0%-45.0%9.3%-8.8%

Price Volatility Vs. Market

How volatile is Banco Santander's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco Santander undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAN (€3.78) is trading below our estimate of fair value (€5.25)

Significantly Below Fair Value: SAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAN is poor value based on its PE Ratio (10.4x) compared to the Banks industry average (9.5x).

PE vs Market: SAN is good value based on its PE Ratio (10.4x) compared to the Spanish market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SAN is overvalued based on its PB Ratio (0.6x) compared to the ES Banks industry average (0.4x).


Next Steps

Future Growth

How is Banco Santander forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAN's forecast earnings growth (7.3% per year) is above the savings rate (0.4%).

Earnings vs Market: SAN's earnings (7.3% per year) are forecast to grow slower than the Spanish market (10.4% per year).

High Growth Earnings: SAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAN's revenue (7.1% per year) is forecast to grow faster than the Spanish market (4.7% per year).

High Growth Revenue: SAN's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAN's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Banco Santander performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAN has high quality earnings.

Growing Profit Margin: SAN's current net profit margins (15.9%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: SAN's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: SAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAN had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Banks industry average (-3.7%).


Return on Equity

High ROE: SAN's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banco Santander's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAN's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: SAN's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SAN has a low allowance for bad loans.

Low Risk Liabilities: SAN's liabilities are made up of primarily low risk sources of funding.

Loan Level: SAN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SAN's loans are broadly funded by customer deposits.

Level of Bad Loans: SAN has a high level of bad loans (3.5%)


Next Steps

Dividend

What is Banco Santander's current dividend yield, its reliability and sustainability?

5.29%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Banco Santander before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.3%marketbottom25%2.3%markettop25%5.4%industryaverage5.3%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: SAN's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Spanish market (2.29%).

High Dividend: SAN's dividend (5.29%) is low compared to the top 25% of dividend payers in the Spanish market (5.29%).


Stability and Growth of Payments

Stable Dividend: SAN's dividend payments have been volatile in the past 10 years.

Growing Dividend: SAN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), SAN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAN's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

José Antonio Álvarez Álvarez (59yo)

€9,001,000

Compensation

Mr. José Antonio Álvarez Álvarez has been Vice Chairman of Banco Santander, SA since January 15, 2019 and has been its Director since November 25, 2014 and also serves as its Chief Executive Officer. Mr. Á ...


CEO Compensation Analysis

Compensation vs Market: José Antonio's total compensation ($USD9.78M) is above average for companies of similar size in the Spanish market ($USD3.83M).

Compensation vs Earnings: José Antonio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ana Botín-Sanz de Sautuola y O'Shea
Group Executive Chairman5.4yrs€11.01m0.15% 97.0m
José Antonio Álvarez Álvarez
CEO & Vice Chairman0yrs€9.00m0.0095% 5.9m
José Antonio García Cantera
CFO, Head of Financial Division & Senior EVP0yrsno datano data
Dirk Ludwig Marzluf
Group Head of Technology & Operations1.4yrsno datano data
José Francisco Doncel Razola
Senior EVP and Group Head of Accounting & Financial Control0yrsno datano data
Gustavo Miranda
Head of Investment Banking0yrsno datano data
Sergio Gámez Martínez
Global Head of Shareholder & Investor Relations0yrsno datano data
Marjolein van Hellemondt-Gerdingh
Group Chief Compliance Officer1.1yrsno datano data
Juan Manuel Cendoya Méndez de Vigo
Senior EVP and Head of Communications0yrsno datano data
Jose Luis De Mora Gil-Gallardo
Head of Corporate Development & Financial Planning5.1yrsno datano data

1.4yrs

Average Tenure

53yo

Average Age

Experienced Management: SAN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ana Botín-Sanz de Sautuola y O'Shea
Group Executive Chairman5.4yrs€11.01m0.15% 97.0m
José Antonio Álvarez Álvarez
CEO & Vice Chairman0yrs€9.00m0.0095% 5.9m
Rodrigo Echenique Gordillo
Non-Executive Director31.3yrs€5.10m0.0083% 5.2m
Lawrence Summers
Chairman of International Advisory Board0yrsno datano data
Guillermo de la Dehesa Romero
Non-Executive Director17.7yrs€441.00kno data
Ignacio Benjumea Cabeza de Vaca
Non Independent Non-Executive Director4.4yrs€513.00k0.022% 13.6m
Bruce Carnegie-Brown
Vice Chairman & Lead Independent Director5yrs€732.00k0.00035% 219.9k
Francisco Javier Botín-Sanz de Sautuola y O'Shea
Non-Independent Non-executive Director15.6yrs€121.00k0.032% 19.9m
Álvaro Antonio-Cardoso De Souza
Independent Non-Executive Director1.9yrs€148.00kno data
Belén Romana García
Independent Non-Executive Director4.2yrs€414.00kno data

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SAN's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SAN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.4%.


Top Shareholders

Company Information

Banco Santander, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco Santander, S.A.
  • Ticker: SAN
  • Exchange: BME
  • Founded: 1856
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €62.819b
  • Shares outstanding: 16.61b
  • Website: https://www.santander.com

Number of Employees


Location

  • Banco Santander, S.A.
  • Santander Group City
  • Av. de Cantabria s/n
  • Madrid
  • Madrid
  • 28660
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCDR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1980
SANBME (Bolsas y Mercados Espanoles)YesCommon SharesESEURJan 1980
SANTBIT (Borsa Italiana)YesCommon SharesITEURJan 1980
BNCLSE (London Stock Exchange)YesCommon SharesGBGBPJan 1980
SAN *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1980
BSD2DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
SANEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1980
BSD2XTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1980
SANWSE (Warsaw Stock Exchange)YesCommon SharesPLPLNJan 1980
SANWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1980
SANTAENXTBR (Euronext Brussels)YesCommon SharesBEEURJan 1980
SANNYSE (New York Stock Exchange)ADRUSUSDJul 1987
BSDKDB (Deutsche Boerse AG)ADRDEEURJul 1987
0HLELSE (London Stock Exchange)ADRGBUSDJul 1987

Biography

Banco Santander, S.A., together with its subsidiaries, provides various retail and commercial banking products and services for individual and corporate clients worldwide. It offers demand and time deposits, and current and savings accounts; mortgages, consumer finance, auto finance, and personal loans; export and agency finance, trade and working capital solutions, syndicated corporate loans, and structured financing; debt capital markets and global markets services; and debit and credit cards. The company also provides cash management, transactional, payrolls, and wealth management services. In addition, it is involved in the corporate banking, treasury, and investment banking activities; and real estate investment, leasing, securitization, fund management, e-commerce, technology services, air transport, renting, insurance brokerage, aircraft rental, payments and collection, securities investment, financial advisory, sports, electricity production, and Internet activities. Further, the company offers asset management and private banking services, as well as mobile and online banking services. It operates through a network of 13,217 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:16
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.