LSE:BNC

Stock Analysis Report

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Executive Summary

Banco Santander, S.A., together with its subsidiaries, provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies 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: BNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

BNC

0.9%

GB Banks

0.1%

GB Market


1 Year Return

-47.5%

BNC

-42.3%

GB Banks

-15.3%

GB Market

Return vs Industry: BNC underperformed the UK Banks industry which returned -42.3% over the past year.

Return vs Market: BNC underperformed the UK Market which returned -15.3% over the past year.


Shareholder returns

BNCIndustryMarket
7 Day2.8%0.9%0.1%
30 Day-3.9%-3.8%-2.7%
90 Day9.0%5.0%16.9%
1 Year-46.4%-47.5%-40.6%-42.3%-11.4%-15.3%
3 Year-56.8%-60.6%-42.6%-48.9%-3.4%-15.2%
5 Year-48.0%-56.6%-35.1%-47.0%15.4%-10.3%

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?

8.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BNC (£2.02) is trading above our estimate of fair value (£1.01)

Significantly Below Fair Value: BNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BNC is poor value based on its PE Ratio (8.3x) compared to the Banks industry average (6.7x).

PE vs Market: BNC is good value based on its PE Ratio (8.3x) compared to the UK market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: BNC is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: BNC is good value based on its PB Ratio (0.4x) compared to the GB 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 18 analysts?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNC's forecast earnings growth (26.4% per year) is above the savings rate (1.2%).

Earnings vs Market: BNC's earnings (26.4% per year) are forecast to grow faster than the UK market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BNC's revenue (2.5% per year) is forecast to grow slower than the UK market (3.4% per year).

High Growth Revenue: BNC's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNC's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Banco Santander performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNC has high quality earnings.

Growing Profit Margin: BNC's current net profit margins (11.3%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: BNC's earnings have declined by -0.1% per year over the past 5 years.

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

Earnings vs Industry: BNC had negative earnings growth (-36.9%) over the past year, making it difficult to compare to the Banks industry average (9.1%).


Return on Equity

High ROE: BNC's Return on Equity (6.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: BNC's Assets to Equity ratio (14.5x) is moderate.

Allowance for Bad Loans: BNC has a low allowance for bad loans (69%).

Low Risk Liabilities: 70% of BNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: BNC has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: BNC's Loans to Deposits ratio (95%) is appropriate.

Level of Bad Loans: BNC has a high level of bad loans (3.3%).


Next Steps

Dividend

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

4.82%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BNC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BNC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BNC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BNC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jose Antonio Alvarez Alvarez (60yo)

no data

Tenure

€8,270,000

Compensation

Mr. Jose Antonio Alvarez Alvarez 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. A ...


CEO Compensation Analysis

Compensation vs Market: Jose Antonio's total compensation ($USD9.30M) is above average for companies of similar size in the UK market ($USD4.63M).

Compensation vs Earnings: Jose Antonio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ana Botín-Sanz de Sautuola y O'Shea
Executive Chairwoman5.83yrs€9.95m0.16% 54.3m
Jose Antonio Alvarez Alvarez
CEO & Vice Chairmanno data€8.27m0.0095% 3.2m
José Antonio García Cantera
Group Chief Financial Officerno datano datano data
Dirk Ludwig Marzluf
Group Head of Technology & Operations1.83yrsno datano data
José Francisco Doncel Razola
Senior EVP and Group Head of Accounting & Financial Controlno datano datano data
Gustavo Miranda
Head of Investment Bankingno datano datano data
Sergio Gámez Martínez
Global Head of Shareholder & Investor Relationsno datano datano data
Marjolien van Hellemondt-Gerdingh
Group Chief Compliance Officer1.5yrsno datano data
Juan Manuel Cendoya Méndez de Vigo
Senior EVP and Head of Communicationsno datano datano data
Jose Luis De Mora Gil-Gallardo
Group Head of Strategy and Corporate Development & Head of Santander Consumer Finance5.5yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: BNC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ana Botín-Sanz de Sautuola y O'Shea
Executive Chairwoman5.83yrs€9.95m0.16% 54.3m
Jose Antonio Alvarez Alvarez
CEO & Vice Chairmanno data€8.27m0.0095% 3.2m
Sergio Rial
Head of Brazil0.25yrno datano data
Rodrigo Echenique Gordillo
Non-Executive Director31.75yrs€6.07m0.0089% 3.0m
Lawrence Summers
Chairman of International Advisory Boardno datano datano data
Bruce Carnegie-Brown
Independent Vice Chairman & Lead Independent Director5.42yrs€700.00k0.00035% 116.6k
Francisco Javier Botín-Sanz de Sautuola y O'Shea
Non-Independent Non-executive Director16yrs€137.00k0.032% 10.6m
Alvaro Antonio-Cardoso De Souza
Independent Non-Executive Director2.33yrs€276.00kno data
Esther Giménez-Salinas i Colomer
Independent Non-Executive Director8.33yrs€228.00k0.000040% 13.3k
Pamela Walkden
Independent Non-Executive Director0.75yr€34.00k0.000020% 6.7k

5.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BNC's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BNC 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 2.3%.


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: BNC
  • Exchange: LSE
  • Founded: 1856
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €36.954b
  • Listing Market Cap: €33.323b
  • Shares outstanding: 16.59b
  • 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 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, 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; insurance products; 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; leasing, securitization, management of funds and portfolios, e-commerce, technology services, air transport, renting, insurance brokerage, aircraft rental, payments and collection, reinsurance, securities investment, sports, electricity production, IT, Internet, and financial advisory and other activities; and purchase and sale of vehicles. Further, the company offers asset management, private, mobile, and online banking services, as well as develops, invests in, manages, and rents real estate properties. It operates through a network of 11,952 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 Analysis2020/07/04 21:28
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.