Banco Santander Chile (BSAC) AI Stock Analysis

• Market Cap: $11.16B
• Dividend Yield: 5.63%
• Average Volume (3M): 429.96K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.60
• Revenue Growth: 18.54%
• EPS Growth: 65.80%
• Country: US
• Employees: 8,757
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.61
• Shares Outstanding: 471,115,330
• 10 Day Avg. Volume: 392,233
• 30 Day Avg. Volume: 429,961
• PEG Ratio: 0.58
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.33
• Price Target Upside: -1.27% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $28.00 ▲(18.49%Upside)

Banco Santander Chile's overall score is driven by strong earnings growth and effective digital strategy execution, as highlighted in the earnings call. While the company has solid valuation metrics and profitability, technical indicators present a mixed picture, and potential liquidity concerns may pose risks.

Banco Santander Chile Business Overview & Revenue Model

Company Description

Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual funds, insurance and securities brokerage, foreign exchange, financial leasing, factoring, financial consulting and advisory, investment management, foreign trade, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, and brokerage services, as well as derivatives, securitization, and other tailor-made products. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. As of December 31, 2021, the company operated 326 branches, which include 220 under the Santander brand name, 14 under the Select brand name, 7 specialized branches for the middle market, and 22 as auxiliary and payment centers, as well as 1,338 ATMs, including depository ATMs. Banco Santander-Chile was incorporated in 1977 and is headquartered in Santiago, Chile.

How the Company Makes Money

Banco Santander Chile generates revenue primarily through net interest income, which is the difference between the interest earned on loans and advances to customers and the interest paid on deposits and other borrowed funds. Additionally, the bank earns non-interest income from fees and commissions related to various financial services such as account management, credit card services, and wealth management. The bank also engages in trading and investment activities, contributing to its financial income. Strategic partnerships with financial technology companies and participation in syndicated loans and capital markets further bolster its revenue streams. Factors such as interest rate environments, economic conditions in Chile, and regulatory frameworks significantly influence the bank's earnings.

Banco Santander Chile Financial Statement Overview

Summary

Banco Santander Chile demonstrates strong profitability and revenue growth, crucial for a regional bank. High leverage and low equity ratio, typical for the industry, pose risk factors. Cash flow analysis indicates potential liquidity issues despite robust profitability metrics, necessitating careful cash management.

Income Statement

Banco Santander Chile has shown strong revenue growth with a notable increase in Total Revenue over the last year, with a TTM Gross Profit Margin of 72.92% and a Net Profit Margin of 33.02%. The EBIT Margin stands at 44.12%, and EBITDA Margin at 44.28%, indicating efficient operational performance. However, the Revenue Growth Rate has fluctuated over the years, which could imply some volatility in revenue streams.

Balance Sheet

The company's Balance Sheet reveals a Debt-to-Equity Ratio of 2.29, indicating a high leverage level typical for banks. The Return on Equity (ROE) is strong at 22.63%, showcasing good profitability and efficient use of equity. However, the Equity Ratio is low at 6.67%, suggesting limited buffer against financial distress.

Cash Flow

There is a substantial decline in Free Cash Flow from the previous year, with a negative Free Cash Flow Growth Rate. The Operating Cash Flow to Net Income Ratio is 0.03, which indicates low cash generation from operations relative to net income. The Free Cash Flow to Net Income Ratio is negative, which may pose liquidity concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.90T	5.22T	4.72T	3.37T	2.04T
Gross Profit	2.09T	1.59T	1.85T	1.97T	2.04T
EBITDA	1.24T	835.15B	1.02T	1.20T	761.72B
Net Income	852.96B	579.43B	792.28B	842.47B	547.61B
Balance Sheet
Total Assets	68.40T	71.09T	68.42T	63.84T	55.70T
Cash, Cash Equivalents and Short-Term Investments	7.61T	10.52T	11.30T	11.14T	11.16T
Total Debt	14.45T	12.42T	10.58T	10.38T	14.69T
Total Liabilities	63.04T	65.77T	63.46T	59.41T	52.00T
Stockholders Equity	5.25T	5.22T	4.85T	4.33T	3.62T
Cash Flow
Free Cash Flow	374.67B	1.19T	-472.28B	-673.95B	-905.78B
Operating Cash Flow	482.39B	1.32T	-358.99B	-587.18B	-819.99B
Investing Cash Flow	-106.58B	-117.85B	-94.60B	-91.77B	-70.11B
Financing Cash Flow	-372.85B	-515.29B	-384.32B	238.66B	102.09B

Banco Santander Chile Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.63
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSAC, the sentiment is Neutral. The current price of 23.63 is below the 20-day moving average (MA) of 24.31, below the 50-day MA of 24.57, and above the 200-day MA of 21.23, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BSAC.

Banco Santander Chile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	77 Outperform	$17.99B	11.65	16.35%	9.76%	3.89%	15.26%
BSAC	76 Outperform	$11.16B	10.45	24.02%	5.63%	18.54%	65.80%
CIB	75 Outperform	$12.22B	13.50	15.99%	14.99%	-5.45%	3.43%
BMA	74 Outperform	$4.17B	942.19	0.11%	0.59%	-46.30%	-79.35%
BSBR	70 Outperform	$17.67B	15.06	10.89%	5.61%	-3.94%	31.52%
BCH	69 Neutral	$14.40B	10.98	23.88%	7.41%	-17.02%	-10.73%
Sector *	67 Neutral	$16.88B	11.72	9.78%	3.73%	11.83%	-7.72%