NYSE:SC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Santander Consumer USA Holdings

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

Moderate growth potential with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

SC

-3.3%

US Consumer Finance

-1.4%

US Market


1 Year Return

-18.6%

SC

-15.5%

US Consumer Finance

17.8%

US Market

Return vs Industry: SC underperformed the US Consumer Finance industry which returned -13.9% over the past year.

Return vs Market: SC underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SCIndustryMarket
7 Day2.8%-3.3%-1.4%
30 Day20.1%6.4%4.7%
90 Day13.1%8.9%8.2%
1 Year-14.9%-18.6%-13.6%-15.5%20.5%17.8%
3 Year50.8%36.4%-0.5%-5.6%42.2%32.7%
5 Year2.4%-7.3%21.3%11.3%83.4%62.7%

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?

24.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SC ($20.71) is trading above our estimate of fair value ($13.53)

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


Price To Earnings Ratio

PE vs Industry: SC is poor value based on its PE Ratio (24.9x) compared to the US Consumer Finance industry average (10.8x).

PE vs Market: SC is poor value based on its PE Ratio (24.9x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Santander Consumer USA Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

70.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SC's forecast earnings growth (70.1% per year) is above the savings rate (2.2%).

Earnings vs Market: SC's earnings (70.1% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: SC's revenue (8.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SC's revenue (8.9% per year) is forecast to grow slower than 20% 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 (14.1%).


Next Steps

Past Performance

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

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SC has high quality earnings.

Growing Profit Margin: SC's current net profit margins (7.5%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: SC's earnings have grown by 0.5% per year over the past 5 years.

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

Earnings vs Industry: SC had negative earnings growth (-70.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (-32.3%).


Return on Equity

High ROE: SC's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Santander Consumer USA Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SC's short term assets ($30.3B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: SC's short term assets ($30.3B) do not cover its long term liabilities ($40.1B).


Debt to Equity History and Analysis

Debt Level: SC's debt to equity ratio (832.4%) is considered high.

Reducing Debt: SC's debt to equity ratio has increased from 721.4% to 832.4% over the past 5 years.

Debt Coverage: SC's debt is not well covered by operating cash flow (9.5%).

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


Balance Sheet


Next Steps

Dividend

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

4.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SC's dividend (4.25%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: SC's dividend (4.25%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106%), SC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SC's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Mahesh Aditya (57 yo)

0.83

Tenure

US$1,430,760

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mahesh's total compensation ($USD1.43M) is below average for companies of similar size in the US market ($USD7.32M).

Compensation vs Earnings: Insufficient data to compare Mahesh's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mahesh Aditya
President0.83yrUS$1.43m0.0016%
$ 103.3k
Fahmi Karam
Chief Financial Officer1.08yrsUS$1.40m0.012%
$ 802.2k
Sandra Broderick
Executive VP & Head of Operations3yrsUS$2.26m0.014%
$ 944.7k
Christopher Pfirrman
Chief Legal Officer5.08yrsUS$1.37m0.013%
$ 879.3k
Joshua Baer
Chief Risk Officer2.58yrsUS$1.19m0.0014%
$ 93.5k
Reza Leaali
Chief Technology Officer2.67yrsUS$2.31m0.0065%
$ 423.0k
Evan Black
Head of Investor Relationsno datano datano data
Matthew Fitzgerald
Executive Vice President of Sales and Marketing13.75yrsno datano data
Mikenzie Sari
Chief Human Resources Officer2.08yrsno data0.0018%
$ 114.4k
Sunil Sajnani
Executive VP and Head of Digital & Service for Others1.58yrsno data0.0069%
$ 453.7k
Shawn Allgood
Head of Chrysler Capital & Auto Relationships1.25yrsno data0.0065%
$ 427.6k
Gene Cohler
Executive VP and Head of Decision Sciences & Model Development0.58yrno datano data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Management: SC's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mahesh Aditya
President0.83yrUS$1.43m0.0016%
$ 103.3k
Edith Holiday
Independent Director3.92yrsUS$240.00k0.0039%
$ 254.3k
Gonzalo de Las Milla
Honorary Chairmanno datano datano data
William Muir
Independent Director3.92yrsUS$260.00k0.0039%
$ 254.3k
Robert McCarthy
Independent Director5.25yrsUS$260.00k0.0049%
$ 322.3k
Stephen Ferriss
Independent Vice Chairman of the Boardno dataUS$280.00k0.0053%
$ 347.8k
William Rainer
Independent Chairman of the Board4.25yrsUS$670.00k0.0043%
$ 278.5k
Homaira Akbari
Independent Director0.75yrno data0.00039%
$ 25.5k
Juan Alvarez de Soto
Director0.83yrUS$1.59m0.0026%
$ 170.6k
Javier Maldonado Trinchant
Director5.25yrsno datano data
Victor Hill
Director5.25yrsno datano data

3.9yrs

Average Tenure

66yo

Average Age

Experienced Board: SC's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SC insiders have only sold shares 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$6.538b
  • Shares outstanding: 315.68m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2014
77SDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2014

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 Analysis2020/10/21 23:54
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.