NYSE:BSBR

Stock Analysis Report

Banco Santander (Brasil)

Executive Summary

Banco Santander (Brasil) S.A. provides commercial banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally.


Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BSBR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

BSBR

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-57.6%

BSBR

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: BSBR underperformed the US Banks industry which returned -32.9% over the past year.

Return vs Market: BSBR underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

BSBRIndustryMarket
7 Day-4.6%-7.0%-2.6%
30 Day-37.4%-24.6%-15.2%
90 Day-57.1%-41.9%-22.2%
1 Year-55.5%-57.6%-30.8%-32.9%-11.5%-13.3%
3 Year-27.7%-36.9%-21.4%-27.3%13.2%5.7%
5 Year31.9%0.2%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSBR ($4.93) is trading below our estimate of fair value ($6.29)

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


Price To Earnings Ratio

PE vs Industry: BSBR is good value based on its PE Ratio (6.9x) compared to the Banks industry average (8.6x).

PE vs Market: BSBR is good value based on its PE Ratio (6.9x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: BSBR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BSBR is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Banco Santander (Brasil) forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSBR's forecast earnings growth (3.9% per year) is above the savings rate (1.7%).

Earnings vs Market: BSBR's earnings (3.9% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: BSBR's revenue (13.6% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: BSBR's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSBR's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has Banco Santander (Brasil) performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSBR has high quality earnings.

Growing Profit Margin: BSBR's current net profit margins (28.6%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: BSBR's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: BSBR's earnings growth over the past year (16.6%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: BSBR earnings growth over the past year (16.6%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: Whilst BSBR's Return on Equity (20.39%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Banco Santander (Brasil)'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: BSBR's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: BSBR has a high level of bad loans (8.1%)


Next Steps

Dividend

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

11.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSBR's dividend (11.49%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: BSBR's dividend (11.49%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

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

Growing Dividend: BSBR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.8%), BSBR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Sergio Rial (59yo)

no data

Tenure

Mr. Sergio Agapito Lires Rial serves as the Chief Executive Officer at Banco Santander (Brasil) SA and its Member of Board of Executive Officers. Mr. Rial served as Chairman of Banco Santander Brazil from  ...


Board Members

NamePositionTenureCompensationOwnership
Álvaro Antonio-Cardoso De Souza
Chairman & President3.33yrsno datano data
Sergio Rial
Vice Chairmanno datano data0.013% R$2.4m
Deborah Wright
Independent Director3.33yrsno datano data
José Nus Badía
Director5yrsno datano data
José Antonio Álvarez Álvarez
Director10.58yrsno datano data
João de Andrade So Consiglio
President of Fiscal Councilno datano data0.0043% R$789.2k
José de Paiva Ferreira
Director10.17yrsno data0.012% R$2.1m
Celso Giacometti
Independent Director10.17yrsno datano data
Marília Rocca
Independent Director1yrno datano data
Deborah Vieitas
Independent Director2.75yrsno datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: BSBR's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Banco Santander (Brasil) S.A.
  • Ticker: BSBR
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$96.068b
  • Listing Market Cap: R$18.353b
  • Shares outstanding: 7.47b
  • Website: https://www.santander.com.br

Number of Employees


Location

  • Banco Santander (Brasil) S.A.
  • Avenida Presidente Juscelino Kubitschek, 2041 and 2235
  • A Block
  • São Paulo
  • São Paulo
  • 04543-011
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SANB4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLMar 2002
SANB3BOVESPA (Bolsa de Valores de Sao Paulo)Ordinary SharesBRBRLApr 2007
SANB11BOVESPA (Bolsa de Valores de Sao Paulo)UnitsBRBRLOct 2009
BSBRNYSE (New York Stock Exchange)ADS REP 1 UNITUSUSDOct 2009
DBSADB (Deutsche Boerse AG)ADS REP 1 UNITDEEUROct 2009
BSBR NBMV (Bolsa Mexicana de Valores)ADS REP 1 UNITMXMXNOct 2009

Biography

Banco Santander (Brasil) S.A. provides commercial banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. It operates through two segments, Commercial Banking and Global Wholesale Banking. The company offers checking and savings accounts; priority services, such as withdrawals, debit cards, deposits, and transfers; onshore and offshore financial products and services, investment advice, and asset management services; consumer credit for purchasing motor vehicles, and other goods and services; local loans, commercial finance, trade finance, guarantees, structured loans, and cash management and funding solutions, as well as Banco Nacional de Desenvolvimento Econômico e Social on-lending transfer services; payroll, mortgage, and agribusiness loans, as well as microcredit; investment products; and credit cards and foreign exchange services. It also provides funding and financial advisory services related to projects, and origination and distribution of fixed-income securities in the debt capital markets, as well as financing for acquisitions and syndicated loans, other structured financing arrangements, and subordinated debt and energy efficiency transactions. In addition, the company offers advisory services in mergers and acquisitions, and equity capital markets transactions; stock brokerage and advisory, equity, and equity research services; derivative and investment products; and digital payment solutions. Further, it operates Webmotors, an online automotive classified. The company provides its products and services through branches, mini-branches, and ATMs; call centers; and digital channels, such as Internet banking and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:21
End of Day Share Price2020/04/06 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.