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Banco Santander US (SAN)
:SAN
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Banco Santander SA
(NYSE:SAN)
Select Model
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Rating:72Outperform
Price Target:
$11.00
â–²(12.59% Upside)
Banco Santander SA's overall score reflects strong earnings performance and positive sentiment from the latest earnings call, offset by high leverage and negative cash flow. The stock's valuation is reasonable, and technical indicators suggest moderate momentum.
Banco Santander SA (SAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$150.72B
Dividend Yield2.53%
Average Volume (3M)3.31M
Price to Earnings (P/E)10.1
Beta (1Y)0.89
Revenue Growth-15.34%
EPS Growth16.71%
CountryUS
Employees206,736
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.26
Shares Outstanding14,885,325,000
10 Day Avg. Volume3,497,361
30 Day Avg. Volume3,307,324
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.69
Price to Sales (P/S)0.53
P/FCF Ratio-2.09
Enterprise Value/Market Cap3.23
Enterprise Value/Revenue6.42
Enterprise Value/Gross Profit10.19
Enterprise Value/Ebitda22.01
Forecast
1Y Price Target
$4.90Price Target Upside-49.85% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.03
Revenue Forecast (FY)$72.08B
Banco Santander SA Business Overview & Revenue Model
Company DescriptionBanco Santander SA (SAN) is a leading global financial services company based in Spain, operating primarily in the banking sector. With a strong presence in Europe, Latin America, and North America, the bank offers a wide range of financial products and services, including retail banking, commercial banking, investment banking, asset management, and insurance. Santander is known for its commitment to digital transformation and innovation, aiming to provide enhanced customer experiences through technology-driven solutions.
How the Company Makes MoneyBanco Santander generates revenue through multiple key streams. The primary source is net interest income, which comes from the difference between the interest earned on loans and the interest paid on deposits. The bank also earns significant income from fees and commissions related to its retail and commercial banking services, including account maintenance fees, transaction fees, and advisory services. Additionally, Santander's investment banking division contributes to its revenue through underwriting, trading, and asset management services. The bank has established partnerships with various fintech companies to enhance its service offerings and reach new customer segments, further diversifying its revenue sources. Economic conditions, interest rate fluctuations, and regulatory changes can all impact Santander's earnings, making these factors critical to its financial performance.
Banco Santander SA Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive overall sentiment, with record profits, strong fee income growth, and improved efficiency ratios. However, challenges such as currency depreciation, high cost of risk in Brazil, and litigation provisions present areas of concern.Q3-2025 Updates
Positive Updates
Record Quarterly Profit
Santander achieved a record quarterly profit of EUR 3.5 billion, marking the best 9-month period ever in 2025, driven by strong revenue growth across global businesses and a solid customer base.
Increased Customer Base
The customer base increased by 7 million year-on-year to 178 million, enhancing customer experience through global platforms.
RoTE Increase
Return on Tangible Equity (RoTE) increased by 70 basis points to 16.1%, demonstrating efficiency gains and profitability.
Strong Capital Ratio
The capital ratio ended the quarter at an all-time high of 13.1%, with robust credit quality.
Shareholder Value Creation
Tangible Net Asset Value (TNAV) plus cash dividend per share grew 15% despite currency headwinds.
Fee Income Growth
Fee income achieved a record period with an 8% increase, supported by significant customer growth and product mix shift towards value-added products.
Efficiency Improvements
The efficiency ratio improved to 41.3%, the best in over 15 years, with costs dropping 1% year-on-year.
Growth in Payments and Cards
Payments revenue increased by 19%, with Cards and PagoNxt delivering double-digit growth, driving profit growth of more than 60%.
Negative Updates
Currency Depreciation Impact
The difference in growth rates between current and constant euros was around 5 percentage points, mainly due to the depreciation of the Brazilian real and the Mexican peso.
High Cost of Risk in Brazil
Despite some improvements, Brazil's cost of risk remained high at around 4.71%, with a challenging environment due to high real interest rates.
Argentina's Economic Challenges
Argentina faced high inflation and real interest rates, resulting in a cost of risk of nearly 7%, necessitating a cautious credit approach.
Regulatory Headwinds
Expected regulatory and supervisory charges of 20 to 25 basis points for the year, with a portion still pending for the fourth quarter.
Litigation Provisions
Ongoing litigation in the U.K., including motor finance and AXA provisions, with uncertainty regarding final scope and impact.
Company Guidance
During Santander's third-quarter 2025 results presentation, the bank announced a record quarterly profit of EUR 3.5 billion, driven by strong revenue growth and an expanding customer base, which grew by 7 million year-on-year to 178 million. The bank's RoTE increased by 70 basis points to 16.1%, supported by efficiency gains from the ONE Transformation program. Santander's capital ratio reached an all-time high of 13.1%, and TNAV plus cash dividend per share grew 15% despite currency headwinds. The bank plans to distribute at least EUR 10 billion to shareholders through share buybacks in 2025-2026. Notably, fees rose significantly across CIB, Wealth, and Payments by 7%, 19%, and 16%, respectively. Additionally, Santander's cost management led to expenses decreasing by 1% in euros, contributing to a solid net operating income growth. The bank also reported improvements in credit quality, with a cost of risk consistently improving year-on-year.Banco Santander SA Financial Statement Overview
Summary
Banco Santander SA shows strong revenue growth and improved profitability, but high leverage and negative cash flow are significant risks. The balance sheet indicates efficient equity management, though high debt levels are concerning.Income Statement
Banco Santander SA has demonstrated strong revenue growth, with a significant increase from $44.76B in 2023 to $63.49B in 2024. The net profit margin improved from 24.73% to 19.80%, reflecting enhanced profitability. However, the absence of EBIT and EBITDA data for 2024 limits a full assessment of operating efficiency.79
Positive
Balance Sheet
The company's debt-to-equity ratio is approximately 3.30, indicating a high level of leverage. However, the equity ratio remains stable at around 5.37%, and the ROE has increased to 12.75%, suggesting efficient use of equity capital. The high leverage poses a risk, but equity stability and return on equity are strong points.73
Positive
Cash Flow
Operating cash flow turned negative at -$24.16B in 2024 from $5.02B in 2023, raising concerns about cash flow generation. Free cash flow has also decreased significantly. The negative free cash flow to net income ratio suggests challenges in converting income into cash.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.90B | 129.91B | 121.87B | 87.03B | 61.50B | 60.50B |
| Gross Profit | 47.84B | 51.20B | 46.97B | 43.36B | 41.02B | 34.39B |
| EBITDA | 22.14B | 22.32B | 19.64B | 18.23B | 17.30B | 734.00M |
| Net Income | 13.60B | 12.57B | 11.08B | 9.61B | 8.12B | -8.77B |
Balance Sheet | ||||||
| Total Assets | 1.84T | 1.84T | 1.80T | 1.73T | 1.60T | 1.51T |
| Cash, Cash Equivalents and Short-Term Investments | 343.46B | 237.41B | 268.41B | 223.07B | 264.01B | 269.54B |
| Total Debt | 316.62B | 483.38B | 310.98B | 282.96B | 334.39B | 322.17B |
| Total Liabilities | 1.73T | 1.73T | 1.69T | 1.64T | 1.50T | 1.42T |
| Stockholders Equity | 101.08B | 98.60B | 95.42B | 89.10B | 86.93B | 81.48B |
Cash Flow | ||||||
| Free Cash Flow | 20.09B | -32.65B | -8.63B | 16.87B | 45.29B | 57.63B |
| Operating Cash Flow | 25.58B | -24.16B | 5.01B | 27.71B | 56.69B | 66.15B |
| Investing Cash Flow | -969.00M | -3.71B | -5.37B | -3.90B | -3.71B | -7.22B |
| Financing Cash Flow | -11.97B | -5.51B | -2.06B | -9.96B | -1.32B | -1.91B |
Banco Santander SA Technical Analysis
Positive
9.77
Price Trends
10.11
Positive
9.57
Positive
8.28
Positive
Market Momentum
0.09
Positive
48.41
Neutral
9.84
Positive
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 9.77 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 10.11, and above the 200-day MA of 8.28, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 9.84 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $234.15B | 14.56 | 8.66% | 4.76% | -9.54% | -22.46% | |
77 Outperform | $71.37B | 9.55 | 9.44% | 2.09% | 17.50% | 49.25% | |
73 Outperform | $117.17B | 10.29 | 18.00% | 4.08% | 7.52% | 10.40% | |
72 Outperform | $150.72B | 10.13 | 12.54% | 2.53% | -15.34% | 16.71% | |
72 Outperform | $72.71B | 11.14 | 11.71% | 4.70% | 2.20% | -0.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $176.60B | 13.88 | 6.88% | 2.35% | -0.62% | 105.57% |
* Financial Sector Average
SAN
Banco Santander SA
10.17
5.63
124.01%
BBVA
Banco Bilbao
20.40
11.17
121.02%
BCS
Barclays
20.84
7.83
60.18%
C
Citigroup
99.69
30.85
44.81%
HSBC
HSBC Holdings
68.96
24.91
56.55%
ING
ING Groep
24.82
10.35
71.53%
Banco Santander SA Corporate Events
Banco Santander Advances Share Buyback Program in October 2025
Oct 23, 2025
Banco Santander, S.A. announced that between October 16 and October 22, 2025, it executed a significant portion of its share buyback program, purchasing shares worth approximately 833 million Euros. This represents about 49% of the maximum investment amount for the program, which aims to repurchase 14.7% of its outstanding shares as of 2021. The buyback is part of the bank’s strategy to enhance shareholder value and optimize its capital structure.
Banco Santander to Announce Q3 2025 Financial Results
Oct 22, 2025
Banco Santander, S.A. announced on October 22, 2025, that it will release its third-quarter financial results for 2025 on October 29, 2025. The bank plans to host an audio conference for analysts and a separate presentation for the media to discuss these results, indicating a transparent approach to stakeholder communication.
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.