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

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

5.6%

SAN

2.1%

ES Banks

0.5%

ES Market


1 Year Return

-3.3%

SAN

-13.4%

ES Banks

4.6%

ES Market

Return vs Industry: SAN exceeded the Spanish Banks industry which returned -13.4% over the past year.

Return vs Market: SAN underperformed the Spanish Market which returned 4.6% over the past year.


Shareholder returns

SANIndustryMarket
7 Day5.6%2.1%0.5%
30 Day5.5%2.8%0.9%
90 Day-4.1%-0.1%0.4%
1 Year-0.9%-3.3%-10.5%-13.4%8.1%4.6%
3 Year-1.9%-11.7%-6.3%-16.0%13.6%3.1%
5 Year-29.7%-42.2%-36.9%-48.2%9.0%-11.5%

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?

6.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAN (€3.97) is trading below our estimate of fair value (€4.23)

Significantly Below Fair Value: SAN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SAN is poor value based on its PE Ratio (9.6x) compared to the Banks industry average (9.5x).

PE vs Market: SAN is good value based on its PE Ratio (9.6x) compared to the Spanish market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SAN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SAN is overvalued based on its PB Ratio (0.7x) compared to the ES Banks industry average (0.5x).


Next Steps

Future Growth

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

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAN's forecast earnings growth (7.6% per year) is above the savings rate (1.5%).

Earnings vs Market: SAN's earnings (7.6% per year) are forecast to grow faster than the Spanish market (7.6% per year).

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

Revenue vs Market: SAN's revenue (3.5% per year) is forecast to grow slower than the Spanish market (3.7% per year).

High Growth Revenue: SAN's revenue (3.5% 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 (7.9%).


Next Steps

Past Performance

How has Banco Santander performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAN's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: SAN's earnings growth over the past year (6.8%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: SAN earnings growth over the past year (6.8%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: SAN's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: SAN has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SAN's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.9x 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 (3.57%)


Next Steps

Dividend

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

5.80%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company5.8%marketbottom25%2.3%markettop25%5.7%industryaverage5.7%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAN's dividend (5.8%) is higher than the bottom 25% of dividend payers in the Spanish market (2.31%).

High Dividend: SAN's dividend (5.8%) is in the top 25% of dividend payers in the Spanish market (5.65%)

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 (55.6%), 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 (48.5% payout ratio).


Next Steps

Management

What is the CEO of Banco Santander's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

José Antonio Álvarez Álvarez (59yo)

0yrs

Tenure

€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 ($USD10.03M) is about average for companies of similar size in the Spanish market ($USD2.98M).

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


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: SAN's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SAN's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€417 Oct 19
Francisco Javier Botín-Sanz de Sautuola y O’Shea
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-executive Director
Shares1
Max Price€3.66
Buy€417 Oct 19
Jorge Maortua Ruiz-López
EntityIndividual
Shares1
Max Price€3.66
Buy€717 Oct 19
Belén Romana García
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2
Max Price€3.66
Buy€417 Jul 19
Ana Botín Sanz de Sautuola y O'Shea
EntityIndividual
Role
Chairman of the Board
Group Executive Chairman
Shares1
Max Price€4.22
Buy€417 Jul 19
Belén Romana García
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1
Max Price€4.22
Buy€417 Jul 19
Marta de Sautuola Ríos
EntityIndividual
Shares1
Max Price€4.22
Buy€3,76022 May 19
Francisco Javier Botín-Sanz de Sautuola y O’Shea
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-executive Director
Shares889
Max Price€4.23
Buy€290,34712 Mar 19
Francisco Javier Botín-Sanz de Sautuola y O’Shea
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-executive Director
Shares67,680
Max Price€4.29
Buy€3,70721 Feb 19
Francisco Javier Botín-Sanz de Sautuola y O’Shea
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-executive Director
Shares923
Max Price€4.03
Buy€7,62013 Dec 18
Homaira Akbari
EntityIndividual
Shares2,000
Max Price€3.81
Buy€1,264,00012 Dec 18
Francisco Javier Botín-Sanz de Sautuola y O’Shea
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-executive Director
Shares320,000
Max Price€3.95

Ownership Breakdown


Management Team

  • Juan Manuel Cendoya Méndez de Vigo (52yo)

    Senior EVP and Head of Communications

    • Tenure: 0yrs
  • José Antonio García Cantera (53yo)

    CFO, Head of Financial Division & Senior EVP

    • Tenure: 0yrs
  • José Antonio Álvarez Álvarez (59yo)

    CEO & Vice Chairman

    • Tenure: 0yrs
    • Compensation: €9.00m
  • Jaime Pérez Renovales (51yo)

    Group Head of General Secretariat & Human Resources and Board Secretary

    • Tenure: 0yrs
  • Patricia de Sautuola y O'Shea (59yo)

    Group Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: €11.01m
  • Jose Luis De Mora Gil-Gallardo (53yo)

    Head of Corporate Development & Financial Planning

    • Tenure: 4.8yrs
  • Sergio Gámez Martínez

    Global Head of Shareholder & Investor Relations

    • Tenure: 0yrs
  • Dirk Ludwig Marzluf (49yo)

    Group Head of Technology & Operations

    • Tenure: 1.1yrs
  • Michael Cleary

    Co-President and Head of Consumer & Business Banking

    • Tenure: 2.3yrs
  • José Francisco Doncel Razola (58yo)

    Senior EVP and Group Head of Accounting & Financial Control

    • Tenure: 0yrs

Board Members

  • Carlos Fernández González (53yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: €266.00k
  • Rodrigo Echenique Gordillo (73yo)

    Non-Executive Director

    • Tenure: 31yrs
    • Compensation: €5.10m
  • Larry Summers (64yo)

    Chairman of International Advisory Board

    • Tenure: 0yrs
  • Guillermo de la Dehesa Romero (78yo)

    Non-Executive Director

    • Tenure: 17.3yrs
    • Compensation: €441.00k
  • José Antonio Álvarez Álvarez (59yo)

    CEO & Vice Chairman

    • Tenure: 0yrs
    • Compensation: €9.00m
  • Bruce Carnegie-Brown (60yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 4.7yrs
    • Compensation: €732.00k
  • Francisco Javier Botín-Sanz de Sautuola y O’Shea (46yo)

    Non-Independent Non-executive Director

    • Tenure: 15.3yrs
    • Compensation: €121.00k
  • Álvaro Antonio-Cardoso De Souza (71yo)

    • Tenure: 1.6yrs
    • Compensation: €148.00k
  • Patricia de Sautuola y O'Shea (59yo)

    Group Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: €11.01m
  • Belén Romana García (54yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: €414.00k

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: €65.851b
  • 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
SANTAENXTBR (Euronext Brussels)YesCommon SharesBEEURJan 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
SANBME (Bolsas y Mercados Espanoles)YesCommon SharesESEURJan 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
BSDKDB (Deutsche Boerse AG)ADR EACH 1 REPR 1 ORD EUR0.50DEEURJul 1987
SANNYSE (New York Stock Exchange)ADR EACH 1 REPR 1 ORD EUR0.50USUSDJul 1987
0HLELSE (London Stock Exchange)ADR EACH 1 REPR 1 ORD EUR0.50GBUSDJul 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 deposit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:47
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.