Banco Santander (ES:SAN)
BME:SAN
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Banco Santander
(BME:SAN)
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Rating:60Neutral
Price Target:
€10.50
▲(5.11% Upside)
Action:DowngradedDate:03/05/26
The score is driven primarily by solid underlying financial performance (strong profitability recovery and healthy returns, offset by higher leverage and cash-flow volatility). Valuation is supportive at a ~10.6 P/E, but weak technical momentum (low RSI and slightly negative MACD, with price below short-term moving averages) weighs on the overall rating.
Positive Factors
Diversified global franchise
Santander's scale across retail, commercial, corporate and wealth businesses in Europe and the Americas provides diversified, recurring revenue streams and broad deposit funding. That multi-product, multi-region model reduces single‑market risk and supports durable cash generation and funding access over 2–6 months.
Negative Factors
Elevated balance sheet leverage
Leverage rising to roughly 4.5x increases sensitivity to credit losses and funding stress, reducing the capital buffer against downturns. Higher financial leverage constrains flexibility for acquisitions or aggressive capital returns and raises the bank's vulnerability to adverse rate or credit cycles over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified global franchise
Santander's scale across retail, commercial, corporate and wealth businesses in Europe and the Americas provides diversified, recurring revenue streams and broad deposit funding. That multi-product, multi-region model reduces single‑market risk and supports durable cash generation and funding access over 2–6 months.
Read all positive factors
Banco Santander (SAN) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€146.55B
Dividend Yield1.82%
Average Volume (3M)24.03M
Price to Earnings (P/E)10.6
Beta (1Y)1.63
Revenue Growth-16.49%
EPS Growth14.32%
CountryES
Employees206,736
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.24
Shares Outstanding14,689,319,000
10 Day Avg. Volume22,076,856
30 Day Avg. Volume24,027,107
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.45
Price to Sales (P/S)1.25
P/FCF Ratio1.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€12.13Price Target Upside21.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.01
Revenue Forecast (FY)€62.40B
Banco Santander Business Overview & Revenue Model
Company Description
Banco Santander, S.A. provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies worldwide. It offers demand and time deposits, and current and savings accounts; mor...
How the Company Makes Money
Banco Santander generates revenue through various key streams, primarily through net interest income, which is derived from the interest earned on loans and other financial products minus the interest paid on deposits. The bank also earns fees and...
Banco Santander Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
Santander has delivered strong results with record profits, improved RoTE, and solid capital ratios. The bank is on track to meet its strategic targets, supported by growth in key segments such as Wealth and Payments. However, challenges persist in Brazil and Argentina due to high interest rates and inflation, and ongoing litigation risks in the UK require monitoring.Positive Updates
Record Quarterly Profit
Santander achieved a record quarterly profit of EUR 3.5 billion, marking the best 9-month period ever with strong revenue growth across global businesses and an increase in the customer base by 7 million year-on-year to 178 million.
Negative Updates
Challenges in Brazil and Argentina
In Brazil, high real interest rates are creating a challenging environment for companies, particularly in agribusiness, while in Argentina, high real rates and inflation are impacting credit risk and profitability.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Quarterly Profit
Santander achieved a record quarterly profit of EUR 3.5 billion, marking the best 9-month period ever with strong revenue growth across global businesses and an increase in the customer base by 7 million year-on-year to 178 million.
Read all positive updates
Company Guidance
In the third quarter of 2025, Santander reported a record quarterly profit of EUR 3.5 billion, marking the best nine-month period in its history. The bank's solid performance was driven by strong revenue growth across global businesses and a customer base increase of 7 million year-on-year, reaching 178 million. The RoTE improved by 70 basis points to 16.1%, supported by efficiency gains and a solid capital ratio of 13.1%. Despite currency headwinds, the TNAV plus cash dividend per share grew by 15%. Santander is on track to meet its strategic plan targets for 2023-2025, with a focus on disciplined capital allocation, maintaining a CET1 ratio above 13%, and executing a EUR 10 billion share buyback plan for 2025-2026. The bank's net interest income grew by 2%, while fees rose by 8%, contributing to a 4% revenue increase in constant euros. Operational efficiencies were evident, with expenses growing below revenue, resulting in solid net operating income growth. The bank anticipates sustaining its performance through strategic transformations and further leveraging its global platforms.Banco Santander Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 119.89B | 50.80B | 45.78B | 41.95B | 39.01B |
| Gross Profit | 48.02B | 51.20B | 46.97B | 43.36B | 39.01B |
| EBITDA | 19.35B | 22.22B | 19.64B | 18.23B | 16.87B |
| Net Income | 14.10B | 12.57B | 11.08B | 9.61B | 8.12B |
Balance Sheet | |||||
| Total Assets | 1.87T | 1.84T | 1.80T | 1.73T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 457.58B | 237.41B | 288.46B | 223.07B | 210.69B |
| Total Debt | 520.75B | 483.38B | 310.98B | 282.96B | 249.02B |
| Total Liabilities | 1.75T | 1.73T | 1.69T | 1.64T | 1.50T |
| Stockholders Equity | 103.17B | 98.60B | 95.42B | 89.10B | 86.93B |
Cash Flow | |||||
| Free Cash Flow | 77.68B | -32.65B | 66.92B | 16.87B | 45.29B |
| Operating Cash Flow | 83.53B | -24.16B | 80.56B | 27.71B | 56.69B |
| Investing Cash Flow | -97.83B | -3.71B | -80.91B | -3.90B | -3.71B |
| Financing Cash Flow | -14.20B | -5.51B | -2.06B | -9.96B | -1.32B |
Banco Santander Technical Analysis
Positive
9.99
Price Trends
10.20
Negative
9.97
Positive
8.98
Positive
Market Momentum
-0.16
Negative
53.69
Neutral
70.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAN, the sentiment is Positive. The current price of 9.99 is above the 20-day moving average (MA) of 9.59, below the 50-day MA of 10.20, and above the 200-day MA of 8.98, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 70.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SAN.
Banco Santander Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €808.35M | 17.20 | 24.57% | 2.80% | 16.79% | 31.55% | |
68 Neutral | €107.46B | 11.93 | 18.53% | 3.39% | 5.66% | 8.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | €15.71B | 42.77 | 12.39% | 7.43% | -6.77% | -39.63% | |
62 Neutral | €6.72B | 13.74 | 9.08% | 5.80% | -9.39% | 45.60% | |
61 Neutral | €11.91B | ― | 11.83% | 3.56% | ― | ― | |
60 Neutral | €146.55B | 10.62 | 13.89% | 1.82% | -16.49% | 14.32% |
* Financial Sector Average
ES:SAN
Banco Santander
9.99
4.11
69.90%
ES:SAB
Banco de Sabadell
3.13
0.63
24.98%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
18.87
6.90
57.64%
ES:MAP
Mapfre, SA
3.90
1.10
39.08%
ES:UNI
Unicaja Banco SA
2.61
1.03
64.82%
ES:R4
Renta 4 Banco, S.A.
19.90
6.72
50.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.