NYSE:BSMX

Stock Analysis Report

Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México

Executive Summary

Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México provides various banking products and services in Mexico.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

BSMX

3.7%

US Banks

1.8%

US Market


1 Year Return

-12.1%

BSMX

1.9%

US Banks

7.3%

US Market

Return vs Industry: BSMX underperformed the US Banks industry which returned 1.9% over the past year.

Return vs Market: BSMX underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

BSMXIndustryMarket
7 Day-0.6%3.7%1.8%
30 Day6.2%0.2%-0.7%
90 Day-7.5%2.5%0.06%
1 Year-8.0%-12.1%4.9%1.9%9.7%7.3%
3 Yearn/a51.7%41.2%46.3%36.9%
5 Yearn/a69.7%51.2%64.5%46.5%

Price Volatility Vs. Market

How volatile is Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México undervalued compared to its fair value and its price relative to the market?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BSMX ($6.83) is trading below our estimate of fair value ($9.88)

Significantly Undervalued: BSMX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BSMX is good value based on its PE Ratio (8.7x) compared to the Banks industry average (12.6x).

PE vs Market: BSMX is good value based on its PE Ratio (8.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BSMX is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BSMX is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSMX's forecast earnings growth (9% per year) is above the savings rate (2.7%).

Earnings vs Market: BSMX's earnings (9% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: BSMX's revenue (9.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BSMX's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BSMX's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BSMX's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: BSMX's earnings growth over the past year (11.5%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: BSMX earnings growth over the past year (11.5%) underperformed the Banks industry 30.5%.


Return on Equity

High ROE: BSMX's Return on Equity (15.4%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México'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: BSMX has a low level of unsold assets or inventory.

Debt Coverage by Assets: BSMX's debt is covered by short term assets (assets are 1.042220x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: BSMX has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: BSMX has an appropriate level of bad loans (1.99%)


Next Steps

Dividend

What is Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México's current dividend yield, its reliability and sustainability?

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BSMX's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BSMX's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, BSMX has been paying a dividend for less than 10 years.

Growing Dividend: BSMX has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.9%), BSMX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BSMX's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).


Next Steps

Management

What is the CEO of Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Héctor Blas Grisi Checa (52yo)

3.8yrs

Tenure

0

Mr. Héctor Blas Grisi Checa has been the Chief Executive Officer and Executive President at Banco Santander México, SA, Institución de Banca Múltiple, Grupo Financiero Santander (Previously known as Banco  ...


Management Age and Tenure

8.8yrs

Average Tenure

Experienced Management: BSMX's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

65yo

Average Age

Experienced Board: BSMX's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Juan Sebastián Moreno Blanco (55yo)

    Vice President of Retail Banking

    • Tenure: 9.8yrs
  • Pedro José Moreno Cantalejo

    Vice President of the Administration & Finance and Executive Officer

    • Tenure: 9yrs
  • Héctor Blas Grisi Checa (52yo)

    CEO, Executive President

    • Tenure: 3.8yrs
  • Rodrigo Brand de Lara

    Deputy General Director of Research

    • Tenure: 7.8yrs
  • Enrique Luis Mondragón Domínguez

    Deputy General Director of Technology and Operations

    • Tenure: 0yrs
  • Héctor Chávez López

    Managing Director of IRO

    • Tenure: 0yrs
  • Fernando Borja Mujica

    Deputy General Legal & Compliance Director and Secretary of the Board

    • Tenure: 0yrs
  • Didier Mena Campos

    CFO & Deputy Director General of Finance

    • Tenure: 1.8yrs
  • Juan Ramón Jiménez Lorenzo

    Chief Executive Audit & Executive Officer

    • Tenure: 0yrs
  • Leandro Jorge Pazos Pochettino

    Executive Director Regulatory Comptrollership

    • Tenure: 0yrs

Board Members

  • Marcos Alejandro Martínez Gavica (65yo)

    Chairman of the Board

    • Tenure: 3.8yrs
  • Ángel Rivera Congosto (53yo)

    Vice President of Retail & Commercial Banking

    • Tenure: 4.8yrs
  • Alberto Torrado Martínez (56yo)

    Independent Director

    • Tenure: 10.8yrs
  • Fernando Benjamín Ruíz Sahagún (75yo)

    Independent Director

    • Tenure: 16.8yrs
  • Emilio de Eusebio Saiz

    Deputy Director General of Intervention & Control Management and Executive officer

    • Tenure: 0yrs
  • Antonio Purón Mier y Terán (65yo)

    Independent Director

    • Tenure: 10.8yrs
  • Héctor Blas Grisi Checa (52yo)

    CEO, Executive President

    • Tenure: 3.8yrs
  • Rodrigo Brand de Lara

    Deputy General Director of Research

    • Tenure: 7.8yrs
  • Guillermo Güemez García (77yo)

    Independent Director

    • Tenure: 7.8yrs
  • Didier Mena Campos

    CFO & Deputy Director General of Finance

    • Tenure: 1.8yrs

Company Information

Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México
  • Ticker: BSMX
  • Exchange: NYSE
  • Founded: 1932
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: Mex$178.769b
  • Listing Market Cap: Mex$9.335b
  • Shares outstanding: 6.79b
  • Website: https://www.santander.com.mx

Number of Employees


Location

  • Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México
  • Avenida Prolongación Paseo de la Reforma 500
  • Colonia Lomas de Santa Fe
  • Mexico City
  • Distrito Federal
  • 1219
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSMXNYSE (New York Stock Exchange)SPON ADR EACH REPR 5 ORD SHS SERIES BUSUSDJan 2018
BSMX BBMV (Bolsa Mexicana de Valores)YesNew Series B SharesMXMXNJan 2018

Biography

Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México provides various banking products and services in Mexico. The company operates through Retail Banking and Glob ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:23
End of Day Share Price2019/10/17 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.