NYSE:SC

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Santander Consumer USA Holdings

Market Cap

US$12.6b

Last Updated

2021/08/01 22:19 UTC

Data Sources

Company Financials +

Executive Summary

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. More Details


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Santander Consumer USA Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

SC

-0.2%

US Consumer Finance

-0.4%

US Market


1 Year Return

123.5%

SC

94.8%

US Consumer Finance

35.9%

US Market

Return vs Industry: SC exceeded the US Consumer Finance industry which returned 94.8% over the past year.

Return vs Market: SC exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

SCIndustryMarket
7 Day0.5%-0.2%-0.4%
30 Day1.2%-2.3%-0.3%
90 Day20.0%4.4%3.1%
1 Year131.4%123.5%98.6%94.8%38.0%35.9%
3 Year126.6%103.9%64.1%55.6%62.9%52.7%
5 Year299.9%253.7%151.3%130.1%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Santander Consumer USA Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Santander Consumer USA Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SC ($41.03) is trading below our estimate of fair value ($89.71)

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


Price To Earnings Ratio

PE vs Industry: SC is good value based on its PE Ratio (4.5x) compared to the US Consumer Finance industry average (6.4x).

PE vs Market: SC is good value based on its PE Ratio (4.5x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SC is overvalued based on its PB Ratio (1.7x) compared to the US Consumer Finance industry average (1.5x).


Future Growth

How is Santander Consumer USA Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SC's earnings are forecast to decline over the next 3 years (-45.8% per year).

Earnings vs Market: SC's earnings are forecast to decline over the next 3 years (-45.8% per year).

High Growth Earnings: SC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SC's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: SC's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SC's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

How has Santander Consumer USA Holdings performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SC has high quality earnings.

Growing Profit Margin: SC's current net profit margins (43.1%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: SC's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: SC's earnings growth over the past year (911.5%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: SC earnings growth over the past year (911.5%) exceeded the Consumer Finance industry 109.4%.


Return on Equity

High ROE: Whilst SC's Return on Equity (38.89%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Santander Consumer USA Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SC's short term assets ($31.0B) exceed its short term liabilities ($682.5M).

Long Term Liabilities: SC's short term assets ($31.0B) do not cover its long term liabilities ($40.3B).


Debt to Equity History and Analysis

Debt Level: SC's debt to equity ratio (527.5%) is considered high.

Reducing Debt: SC's debt to equity ratio has reduced from 655.8% to 527.5% over the past 5 years.

Debt Coverage: SC's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: Insufficient data to determine if SC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Santander Consumer USA Holdings's current dividend yield, its reliability and sustainability?

2.14%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateAug 06 2021Dividend Pay DateAug 19 202113 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SC's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SC's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: SC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.2%), SC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SC's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mahesh Aditya (58 yo)

1.58yrs

Tenure

US$2,442,106

Compensation

Mr. Mahesh Aditya was named President and CEO of Santander Consumer USA Holdings Inc. in December 2019. He joined Santander Holdings USA, Inc. in March 2017 as US Chief Operating Officer and was named US C...


CEO Compensation Analysis

Compensation vs Market: Mahesh's total compensation ($USD2.44M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

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


Board Members

Experienced Board: SC's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Santander Consumer USA Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Santander Consumer USA Holdings Inc.
  • Ticker: SC
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$12.559b
  • Shares outstanding: 306.08m
  • Website: https://www.santanderconsumerusa.com

Number of Employees


Location

  • Santander Consumer USA Holdings Inc.
  • 1601 Elm Street
  • Suite 800
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Biography

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. It offers vehicle financial products and services, inc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:19
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.