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Banco Santander SA
(NYSE:SAN)
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Rating:65Neutral
Price Target:
$14.50
▲(7.09% Upside)
Action:Reiterated
Date:07/22/26
The score is primarily held back by financial quality concerns—especially negative operating/free cash flow in 2024–2025 and elevated leverage—despite improving profitability. Offsetting factors include a constructive (though not strong) technical setup, supportive valuation (P/E ~10.8 with a ~2.23% yield), and a positive earnings-call outlook with reiterated guidance, strong capital metrics, and ongoing buybacks.
Positive Factors
Diversified revenue mix and fee growth
Sustained fee growth alongside net interest income indicates a more diversified revenue base that reduces reliance on trading or rate swings. Persistent fee expansion (payments, wealth, custody) supports more predictable margins and resilience through economic cycles over the next 2–6 months.
Negative Factors
Weak recent cash generation
Negative OCF and FCF in consecutive years erode internal financing capacity, forcing reliance on external funding or capital markets to support buybacks, TLAC/MREL needs and asset mobilization. Persistent weak cash generation raises funding and flexibility risks over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix and fee growth
Sustained fee growth alongside net interest income indicates a more diversified revenue base that reduces reliance on trading or rate swings. Persistent fee expansion (payments, wealth, custody) supports more predictable margins and resilience through economic cycles over the next 2–6 months.
Read all positive factors
Banco Santander SA (SAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$208.45B
Dividend Yield2.16%
Average Volume (3M)8.53M
Price to Earnings (P/E)11.1
Beta (1Y)1.11
Revenue Growth16.84%
EPS Growth33.67%
CountryUS
Employees185,279
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.03
Shares Outstanding14,689,319,000
10 Day Avg. Volume9,585,699
30 Day Avg. Volume8,531,033
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)1.50
Price to Sales (P/S)1.29
P/FCF Ratio-6.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.19
Revenue Forecast (FY)$72.46B
Banco Santander SA Business Overview & Revenue Model
Company Description
Banco Santander, S.A. operates as a global financial institution, delivering a comprehensive suite of retail and commercial banking products and services. It caters to a diverse clientele, including individual consumers, small and medium-sized ent...
How the Company Makes Money
Banco Santander makes money primarily by earning interest income and fees from banking and financial services, supplemented by trading/markets-related income and other operating revenue. Its core revenue engine is net interest income: it gathers c...
Banco Santander SA Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented broad and tangible progress: record profit, top‑line growth across multiple businesses, strong customer and capital metrics, and clear execution on ONE Transformation. Headwinds are present—notably Argentina‑related provisions, motor finance charges in Openbank Europe, transformation costs and localized pressures in Brazil and some CIB trading volatility—but these are described as manageable, often one‑off, and offset by diversified revenue growth and capital generation. Management reiterated targets (including synergies from TSB and expected Webster close) and highlighted continued asset‑mobilization and buybacks.Positive Updates
Record Profit and Best Half Ever
Quarterly profit reached a record EUR 3.8 billion and H1 2026 was the best half ever; underlying profit grew 14% year‑on‑year.
Negative Updates
Argentina‑Related Provisions and Elevated Cost of Risk
Loan loss provisions were materially affected by portfolio deterioration in Argentina; 12‑month cost of risk was ~1.15% (above initial 100–110 bps guidance), with management expecting group cost of risk around 115 bps for 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Profit and Best Half Ever
Quarterly profit reached a record EUR 3.8 billion and H1 2026 was the best half ever; underlying profit grew 14% year‑on‑year.
Read all positive updates
Company Guidance
Management reiterated its 2026 guidance and multi‑year targets while flagging several concrete metrics: they remain on track to deliver >€14.1bn profit in 2026 (ex‑M&A), with underlying profit up 14% y/y, revenue +6% (NII +6%, fees +7%), underlying RoTE 15.6% (close to 17% at normalized CET1), and a Financial North Star of RoE >20% by 2028; CET1 stood at 14% (including a 55bp TSB hit), with net organic capital generation of 27bps in the quarter, an expected year‑end CET1 around the 12.8% target after Webster and regulatory impacts, and continued capital generation and SRT activity (asset mobilization guidance similar to H1, c.€35–40bn pa). They reaffirm cost‑discipline and ONE Transformation benefits—group efficiency ratio improved to 42.8% (Spain 33.6%), costs down 1% y/y (retail/Openbank costs down 3%), and further cost reductions are expected despite inflation—while credit guidance targets cost of risk around 115bps in 2026 (1.0–1.1% average over 2026–28; Brazil ~4.1–4.2%). They expect Santander U.K. RoTE ~16% by 2028 with at least €400m synergies, approved a new €1.8bn buyback (total buybacks ~€9bn; commitment ≥€10bn for 2025–26), and highlighted customer and business KPIs (182m customers, +12m y/y including 4m TSB; fees per active customer +3%).Banco Santander SA Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.09B | 119.89B | 129.91B | 121.87B | 87.03B | 61.50B |
| Gross Profit | 44.62B | 48.02B | 51.20B | 46.97B | 43.36B | 41.02B |
| EBITDA | 21.41B | 21.86B | 22.32B | 19.64B | 18.23B | 17.30B |
| Net Income | 15.64B | 14.10B | 12.57B | 11.08B | 9.61B | 8.12B |
Balance Sheet | ||||||
| Total Assets | 1.86T | 1.87T | 1.84T | 1.80T | 1.73T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 137.46B | 318.20B | 237.41B | 268.41B | 334.02B | 264.01B |
| Total Debt | 434.25B | 496.64B | 483.38B | 310.98B | 425.75B | 334.39B |
| Total Liabilities | 1.75T | 1.75T | 1.73T | 1.69T | 1.64T | 1.50T |
| Stockholders Equity | 106.14B | 103.17B | 98.60B | 95.42B | 89.10B | 86.93B |
Cash Flow | ||||||
| Free Cash Flow | -10.21B | -22.49B | -32.65B | -8.63B | 16.87B | 45.29B |
| Operating Cash Flow | -6.88B | -14.84B | -24.16B | 5.01B | 27.71B | 56.69B |
| Investing Cash Flow | 5.14B | 534.00M | -3.71B | -5.37B | -3.90B | -3.71B |
| Financing Cash Flow | -10.38B | -14.20B | -5.51B | -2.06B | -9.96B | -1.32B |
Banco Santander SA Technical Analysis
Positive
13.54
Price Trends
13.31
Positive
12.49
Positive
11.91
Positive
Market Momentum
0.24
Negative
61.41
Neutral
95.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAN, the sentiment is Positive. The current price of 13.54 is below the 20-day moving average (MA) of 13.77, above the 50-day MA of 13.31, and above the 200-day MA of 11.91, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 95.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAN.
Banco Santander SA Risk Analysis
Banco Santander SA disclosed 41 risk factors in its most recent earnings report. Banco Santander SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Santander SA Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $155.36B | 12.54 | 19.31% | 4.15% | -17.80% | 14.92% | |
72 Outperform | $364.93B | 17.42 | 11.41% | 3.62% | -6.12% | 12.49% | |
71 Outperform | $97.86B | 13.23 | 13.38% | 4.46% | 12.60% | 24.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $92.45B | 10.46 | 10.11% | 1.61% | 12.33% | 22.63% | |
65 Neutral | $208.45B | 11.10 | 15.48% | 2.24% | 16.84% | 33.67% | |
63 Neutral | $227.14B | 14.04 | 8.39% | 1.82% | 3.91% | 37.25% |
* Financial Sector Average
SAN
Banco Santander SA
14.64
5.93
68.08%
BBVA
Banco Bilbao
28.07
11.02
64.62%
BCS
Barclays
28.46
9.28
48.39%
C
Citigroup
137.64
47.32
52.39%
HSBC
HSBC Holdings
102.68
42.91
71.78%
ING
ING Groep
35.92
13.39
59.40%
Banco Santander SA Corporate Events
Banco Santander Integrates TSB After UK Acquisition in First-Half 2026
Jul 24, 2026
Banco Santander has filed its half-year financial report for January to June 2026, approved by its board on 21 July 2026 and structured around group financial performance, risk, solvency and segment information. The report reflects recent changes ...
Banco Santander Nears 60% Completion of €5 Billion Share Buyback by Early June 2026
Jun 4, 2026
On 4 June 2026, Banco Santander reported progress on the share buyback programme approved by its board and launched in February 2026, disclosing transactions executed between 28 May and 3 June 2026 on its ordinary shares in Madrid (XMAD) and Cboe ...
Banco Santander Issues $1.5 Billion AT1 Contingent Convertible Securities to Strengthen Capital
Jun 3, 2026
Banco Santander, S.A., the Spanish global banking group, has issued $1.5 billion of 7.250% non-step-up, non-cumulative contingent convertible perpetual preferred Additional Tier 1 securities, tapping U.S. and international capital markets to bolst...
Banco Santander Completes Acquisition of TSB Banking Group
May 1, 2026
Banco Santander, S.A., the Spanish-headquartered global banking group with a strong presence in retail and commercial banking, continues to pursue scale in key European markets, including the U.K. The bank has historically expanded through targete...
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.