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.
Rewards
Risk Analysis
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
| SAN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.6% | -2.8% | -0.4% |
| 30 Day | 5.9% | 4.5% | 2.9% |
| 90 Day | 4.7% | 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
3 days ago | Simply Wall St
Trade Alert: The CEO & Vice Chairman Of Banco Santander, S.A. (BME:SAN), José Antonio Álvarez Álvarez, Has Just Spent €932k Buying Shares4 days ago | Simply Wall St
Banco Santander, S.A. (BME:SAN) Investors Should Think About This Before Buying It For Its Dividend3 weeks ago | Simply Wall St
Is Banco Santander, S.A.'s (BME:SAN) CEO Salary Justified?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Executive Chairman | 5.4yrs | €11.01m | 0.15% €97.0m | |
| CEO & Vice Chairman | 0yrs | €9.00m | 0.0095% €5.9m | |
| CFO, Head of Financial Division & Senior EVP | 0yrs | no data | no data | |
| Group Head of Technology & Operations | 1.4yrs | no data | no data | |
| Senior EVP and Group Head of Accounting & Financial Control | 0yrs | no data | no data | |
| Head of Investment Banking | 0yrs | no data | no data | |
| Global Head of Shareholder & Investor Relations | 0yrs | no data | no data | |
| Group Chief Compliance Officer | 1.1yrs | no data | no data | |
| Senior EVP and Head of Communications | 0yrs | no data | no data | |
| Head of Corporate Development & Financial Planning | 5.1yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Executive Chairman | 5.4yrs | €11.01m | 0.15% €97.0m | |
| CEO & Vice Chairman | 0yrs | €9.00m | 0.0095% €5.9m | |
| Non-Executive Director | 31.3yrs | €5.10m | 0.0083% €5.2m | |
| Chairman of International Advisory Board | 0yrs | no data | no data | |
| Non-Executive Director | 17.7yrs | €441.00k | no data | |
| Non Independent Non-Executive Director | 4.4yrs | €513.00k | 0.022% €13.6m | |
| Vice Chairman & Lead Independent Director | 5yrs | €732.00k | 0.00035% €219.9k | |
| Non-Independent Non-executive Director | 15.6yrs | €121.00k | 0.032% €19.9m | |
| Independent Non-Executive Director | 1.9yrs | €148.00k | no data | |
| Independent Non-Executive Director | 4.2yrs | €414.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BCDR.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 1980 |
| SAN | BME (Bolsas y Mercados Espanoles) | Yes | Common Shares | ES | EUR | Jan 1980 |
| SANT | BIT (Borsa Italiana) | Yes | Common Shares | IT | EUR | Jan 1980 |
| BNC | LSE (London Stock Exchange) | Yes | Common Shares | GB | GBP | Jan 1980 |
| SAN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1980 |
| BSD2 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1980 |
| SANE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | EUR | Jan 1980 |
| BSD2 | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1980 |
| SAN | WSE (Warsaw Stock Exchange) | Yes | Common Shares | PL | PLN | Jan 1980 |
| SAN | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1980 |
| SANTA | ENXTBR (Euronext Brussels) | Yes | Common Shares | BE | EUR | Jan 1980 |
| SAN | NYSE (New York Stock Exchange) | ADR | US | USD | Jul 1987 | |
| BSDK | DB (Deutsche Boerse AG) | ADR | DE | EUR | Jul 1987 | |
| 0HLE | LSE (London Stock Exchange) | ADR | GB | USD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 21:16 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.