NYSE:SC

Stock Analysis Report

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.

Snowflake

Fundamentals

Second-rate dividend payer and overvalued.


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


Market Performance


7 Day Return

0.4%

SC

1.7%

US Consumer Finance

0.07%

US Market


1 Year Return

42.5%

SC

9.9%

US Consumer Finance

8.9%

US Market

Return vs Industry: SC exceeded the US Consumer Finance industry which returned 9.9% over the past year.

Return vs Market: SC exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SCIndustryMarket
7 Day0.4%1.7%0.07%
30 Day-2.1%-1.2%-0.3%
90 Day-7.2%-7.2%-1.6%
1 Year48.1%42.5%11.8%9.9%11.3%8.9%
3 Year116.5%104.7%55.7%48.2%46.3%36.8%
5 Year46.2%38.2%38.4%28.3%62.1%44.3%

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?

9.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SC ($25.44) is trading above our estimate of fair value ($21.63)

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 (9.5x) compared to the Consumer Finance industry average (8.5x).

PE vs Market: SC is good value based on its PE Ratio (9.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SC is poor value based on its PEG Ratio (13.9x)


Price to Book Ratio

PB vs Industry: SC is overvalued based on its PB Ratio (1.2x) 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 14 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SC's forecast earnings growth (0.7% per year) is below the savings rate (2.7%).

Earnings vs Market: SC's earnings (0.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SC's revenue (6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SC's revenue (6% 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 (14.9%).


Next Steps

Past Performance

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

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SC's earnings have grown by 8.9% 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 (-29.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (25.5%).


Return on Equity

High ROE: SC's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: SC's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Santander Consumer USA Holdings'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: SC has a high level of physical assets or inventory.

Debt Coverage by Assets: SC's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: SC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SC has a sufficient allowance for bad loans.

Low Risk Liabilities: SC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SC has an appropriate level of bad loans.


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SC's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SC's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: SC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.8%), SC's dividend payments are 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 (29.8% payout ratio).


Next Steps

Management

What is the CEO of Santander Consumer USA Holdings's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Scott Powell (57yo)

2.2yrs

Tenure

US$3,260,064

Compensation

Mr. Scott E. Powell has been the Chief Executive Officer of United States at Banco Santander, S.A. since March 03, 2015 and serves as its Country Head. Mr. Powell is the Chief Executive Officer of Santande ...


CEO Compensation Analysis

Compensation vs. Market: Scott has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Scott's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

65yo

Average Age

Experienced Board: SC's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: SC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$822,33029 Jul 19
Christopher Pfirrman
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares30,000
Max PriceUS$27.41
SellUS$369,69506 May 19
Richard Morrin
EntityIndividual
Shares17,422
Max PriceUS$21.22
SellUS$362,36005 Mar 19
Richard Morrin
EntityIndividual
Shares17,546
Max PriceUS$20.65

Ownership Breakdown


Management Team

  • Scott Powell (57yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$3.26m
  • Matt Fitzgerald

    Executive Vice President of Sales and Marketing

    • Tenure: 12.8yrs
  • Christopher Pfirrman (59yo)

    Chief Legal Officer

    • Tenure: 4.1yrs
    • Compensation: US$1.34m
  • Evan Black

    Head of Investor Relations

    • Tenure: 0yrs
  • Sandra Broderick (61yo)

    Executive VP & Head of Operations

    • Tenure: 2yrs
    • Compensation: US$1.98m
  • Reza Leaali (60yo)

    Chief Technology Officer

    • Tenure: 1.7yrs
    • Compensation: US$2.31m
  • Joshua Baer (44yo)

    Chief Risk Officer

    • Tenure: 1.6yrs
  • Mikenzie Sari (42yo)

    Chief Human Resources Officer

    • Tenure: 1.1yrs
  • Fahmi Karam (40yo)

    CFO & Head of Pricing & Analytics

    • Tenure: 0.08yrs
  • Sunil Sajnani (38yo)

    Executive VP and Head of Digital & Service for Others

    • Tenure: 0.6yrs

Board Members

  • Ede Holiday (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$240.00k
  • Gonzalo de Las Milla (79yo)

    Honorary Chairman

    • Tenure: 0yrs
  • Bill Muir (65yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$260.00k
  • Bob McCarthy (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$260.00k
  • Stephen Ferriss (73yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$280.00k
  • Scott Powell (57yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$3.26m
  • Bill Rainer (73yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$670.00k
  • Javier Maldonado Trinchant (57yo)

    Director

    • Tenure: 4.3yrs
  • José Francisco Doncel Razola (58yo)

    Director

    • Tenure: 3.8yrs
  • Vik Hill (55yo)

    Director

    • Tenure: 4.3yrs

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$8.696b
  • Shares outstanding: 341.81m
  • 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. Its products and services include retail installment c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:14
End of Day Share Price2019/10/23 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.