Banco Santander (SAN) AI Stock Analysis

• Market Cap: €111.29B
• Dividend Yield: 2.27%
• Average Volume (3M): 22.43M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.48
• Revenue Growth: -14.67%
• EPS Growth: 16.25%
• Country: ES
• Employees: 206,736
• Sector: Financial
• Sector Strength: 64
• Industry: Banks - Diversified
• EPS (TTM): 0.22
• Shares Outstanding: 14,885,325,000
• 10 Day Avg. Volume: 26,838,587
• 30 Day Avg. Volume: 22,430,816
• PEG Ratio: 0.30
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.36
• P/FCF Ratio: -2.12
• 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: €7.65
• Price Target Upside: 2.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: €8.50 ▲(13.48% Upside)

Banco Santander's solid financial performance, coupled with positive earnings call sentiment and strong technical trends, contribute significantly to its overall score. The attractive valuation further enhances the investment case, despite some regional challenges. The stock's robust fundamentals and strategic initiatives position it well for future growth.

Positive Factors

Cost Efficiency

The plan to become a digital bank with branches emphasizes simplification and alignment of business models, potentially reducing costs and increasing efficiency.

Financial Performance

Santander cites an expected return on invested capital of over 20%, contributing to an increase in Santander UK's return on tangible equity from 11% to 16%.

Strategic Expansion

Santander highlights its intention to integrate TSB within the Santander UK group, allowing it to become the third largest bank in the country by personal current accounts.

Negative Factors

Capital Utilization

Santander anticipates EPS accretion from the first year and around 4% while consuming 50bps of CET1 capital at closing.

Interest Rate Environment

Higher than expected rates in Brazil may present challenges, but Santander remains comfortable with the cost of risk guidance.

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; mortgages, consumer finance, syndicated corporate loans, structured financing, cash management, export and agency finance, trade and working capital solutions, and corporate finance; and insurance products. The company also provides cash, asset, and wealth management; and private banking services. In addition, it is involved in the corporate banking; treasury, risk hedging, foreign trade, confirming, custody, and investment banking activities. The company operates through a network of 9,879 branches. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

How the Company Makes Money

Banco Santander generates revenue primarily through interest income from loans and mortgages, fees from account maintenance and transaction services, and commissions from investment and wealth management services. The company also earns from trading activities, foreign exchange operations, and insurance products. Key revenue streams include net interest income, derived from the difference between interest earned on loans and mortgages and interest paid on deposits, and non-interest income, which encompasses fees for services and commissions. Strategic partnerships and acquisitions have enhanced its market presence and product offerings, contributing to its earnings. Additionally, Santander's geographic diversification helps mitigate risks and leverage growth opportunities across different markets.

Banco Santander Financial Statement Overview

Summary

Banco Santander demonstrates a strong financial position with consistent revenue and profit growth, a solid balance sheet, and robust cash flow generation. These factors are indicative of efficient management and a sound asset base, positioning the bank well in the diversified banking industry.

Income Statement

Banco Santander has shown consistent revenue and profit growth over recent years. The Gross Profit Margin remains strong, indicating efficient cost management. The Net Profit Margin has also improved, reflecting enhanced profitability. A significant Revenue Growth Rate demonstrates positive business momentum.

Balance Sheet

The Balance Sheet indicates solid financial health with a reasonable Debt-to-Equity Ratio, suggesting manageable leverage levels. Return on Equity has improved, showcasing effective utilization of equity capital. The Equity Ratio is stable, ensuring a sound asset base.

Cash Flow

Strong Free Cash Flow Growth Rate highlights effective cash generation capabilities. The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash earnings. Free Cash Flow to Net Income Ratio supports financial flexibility and potential for further investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.39B	50.80B	59.59B	54.22B	48.41B	46.81B
Gross Profit	51.66B	51.20B	59.31B	43.36B	41.02B	46.81B
EBITDA	22.92B	22.22B	19.64B	18.23B	16.87B	0.00
Net Income	13.12B	12.57B	11.08B	9.61B	8.12B	-7.71B
Balance Sheet
Total Assets	1.85T	1.84T	1.80T	1.73T	1.60T	1.51T
Cash, Cash Equivalents and Short-Term Investments	376.15B	237.41B	220.34B	223.07B	210.69B	153.84B
Total Debt	318.22B	483.38B	310.98B	282.96B	249.02B	235.27B
Total Liabilities	1.73T	1.73T	1.69T	1.64T	1.50T	1.42T
Stockholders Equity	101.39B	98.60B	95.42B	89.10B	86.93B	81.48B
Cash Flow
Free Cash Flow	12.18B	-32.65B	66.92B	16.87B	45.29B	57.63B
Operating Cash Flow	17.90B	-24.16B	80.56B	27.71B	56.69B	66.15B
Investing Cash Flow	-1.93B	-3.71B	-80.91B	-3.90B	-3.71B	-7.22B
Financing Cash Flow	-5.25B	-5.51B	-2.06B	-9.96B	-1.32B	-1.91B

Banco Santander Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.49 is above the 20-day moving average (MA) of 7.40, above the 50-day MA of 7.17, and above the 200-day MA of 5.81, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAN	79 Outperform	€111.29B	8.46	13.10%	2.27%	-14.67%	16.25%
Sector *	62 Neutral	AU$10.23B	9.27	11.82%	5.04%	33.79%	41.40%
0H00	―	€16.04B	8.96	13.27%	―	―	―
0H7O	―	€11.24B	10.98	17.23%	―	―	―
BVA	―	€85.83B	8.26	18.91%	4.21%	―	―
0ILK	―	€59.39B	9.79	16.64%	―	―	―
UNJCF	―	$6.76B	9.88	9.57%	2.45%	―	―

Banco Santander Corporate Events

Santander Sells Stake in Santander Polska to Erste Group, Announces Strategic Collaboration

Banco Santander has announced the sale of 49% of its stake in Santander Bank Polska to Erste Group Bank for approximately 7 billion euros. This strategic move includes a collaboration in Corporate & Investment Banking and payments, enhancing Santander’s global platform capabilities. The transaction is expected to generate a net capital gain of 2 billion euros for Santander, improving its CET1 capital ratio and supporting its strategic focus on creating sustainable value for customers and shareholders.

Banco Santander Sells Stake in Santander Bank Polska

Banco Santander has announced the sale of a 49% stake in Santander Bank Polska to Erste Group, a strategic move that could impact its operations and market positioning in the European banking sector. This transaction may have implications for stakeholders, potentially influencing the company’s financial performance and strategic focus in the region.

Banco Santander Sells Stake in Santander Polska to Erste Bank

Banco Santander announced the sale of 49% of its stake in Santander Polska to Erste Bank, which was communicated to analysts via an audioconference. This strategic move may impact Santander’s market positioning in Poland and reflects its efforts to optimize its portfolio and strengthen its financial position.