Banco Santander SA (SAN) AI Stock Analysis

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Banco Santander SA

(NYSE:SAN)

Rating:74Outperform

Price Target:

$11.00

▲(16.53% Upside)

Banco Santander SA's stock is supported by strong technical indicators and reasonable valuation, despite financial risks from high leverage and negative cash flow. The absence of earnings call and corporate events data did not impact the score.

Banco Santander SA (SAN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$141.66B

Dividend Yield2.46%

Average Volume (3M)4.31M

Price to Earnings (P/E)9.8

Beta (1Y)0.84

Revenue Growth-14.74%

EPS Growth17.03%

CountryUS

Employees206,736

SectorFinancial

Sector Strength77

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.25

Shares Outstanding14,885,325,000

10 Day Avg. Volume3,760,118

30 Day Avg. Volume4,310,252

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap3.00

Enterprise Value/Revenue5.57

Enterprise Value/Gross Profit8.52

Enterprise Value/Ebitda18.66

Forecast

1Y Price Target

$5.00

Price Target Upside-47.03% Downside

Rating ConsensusHold

Number of Analyst Covering1

Banco Santander SA Business Overview & Revenue Model

Company DescriptionBanco Santander SA (SAN) is a leading global financial institution headquartered in Spain, specializing in a diverse range of banking services. It operates in various segments, including retail banking, wholesale banking, and investment banking, serving millions of customers across Europe, Latin America, North America, and Asia. The bank's core products and services encompass personal banking, commercial banking, corporate banking, asset management, and insurance services, positioning it as a prominent player in both the consumer and corporate finance sectors.

How the Company Makes MoneyBanco Santander generates revenue primarily through interest income from loans and advances made to customers, which constitutes a significant portion of its total earnings. The bank offers a variety of loan products including mortgages, personal loans, and business loans, charging interest on these loans. Additionally, Santander earns fees and commissions from various services, such as account maintenance, payment processing, and wealth management. Another key revenue stream is from investment banking activities, which include underwriting and advisory services for corporate clients. Furthermore, Santander has established partnerships and alliances with fintech companies to enhance its digital offerings, driving growth in transaction volumes and customer engagement, which further contribute to its earnings. The bank's global presence and diversified portfolio also help mitigate risks and stabilize revenue across different market conditions.

Banco Santander SA Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q1-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong profit growth, increased revenue, and improved efficiency, with significant advancements in the U.S. and consumer segments. However, challenges in Argentina, regulatory impacts in Germany, and economic pressures in Brazil and Spain were notable concerns. Overall, the positive aspects significantly outweighed the negative, indicating a robust market position and strategic growth.

Q1-2025 Updates

Positive Updates

Record Profit Growth

Santander achieved a record profit of €3.4 billion in Q1 2025, which is 19% higher than Q1 2024, demonstrating strong business performance across all segments.

Strong Revenue and Efficiency Improvements

Revenue increased by 5% in constant euros, supported by a 4% increase in NII and double-digit growth in fees. Efficiency improved by 1 point, with ROTE increasing by almost 2 points to 15.8%.

Capital and Shareholder Returns

CET1 ratio improved to 12.9%, and Santander plans to distribute up to €10 billion through share buybacks for '25/'26, reflecting confidence in profitability and value creation.

Retail and Consumer Segment Growth

Retail profits grew strongly, driven by solid revenue growth, improved efficiency, and cost control. Digital sales increased by 23% year-on-year.

Wealth and Payments Performance

Wealth segment profits rose double digits with strong fee growth, while payments saw a 30% profit growth with double-digit revenue increase in PagoNxt and cards.

U.S. Market Expansion

Santander announced a multiyear partnership with Verizon in the U.S., contributing to a 23% revenue increase in CIB and strengthening market position.

Negative Updates

Challenges in Argentina

Argentina's economic conditions caused disturbances, affecting NII and introducing distortions in financial lines, with a sharp decrease in interest rates impacting results.

Regulatory Challenges in Germany

The consumer segment in Germany is affected by new insurance regulations, impacting fee income despite overall growth.

Cost of Risk in Brazil

Brazil faced higher cost of risk due to inflation and interest rate increases, with unsecured lending down 10% year-on-year.

Economic Pressures in Spain

Spain's NII might decrease mid-single digits due to potential interest rate cuts, though efforts are being made to reduce interest rate sensitivity.

Company Guidance

During the Santander Q1 2025 Results Call, guidance was provided on several key financial metrics. The bank reported a record profit of €3.4 billion, a 19% increase compared to Q1 2024. Capital allocation has improved, with profitability reaching 15.8% post AT1 and a CET1 ratio of 12.9%. The bank aims to distribute up to €10 billion to shareholders through share buybacks for 2025/2026, subject to regulatory approvals. Santander's efficiency improved by about 1 point, and its ROTE increased by almost 2 points to 15.8%. Revenue grew by 5%, supported by a 4% increase in net interest income (NII), excluding Argentina, and record fees that grew by double digits. Expenses grew below revenue and inflation, and the bank reiterated its target of lower costs in current euros for 2025. The cost of risk improved consistently, and the bank's diversified business model and geographical reach were highlighted as stabilizing factors amidst varied economic environments. The strategic focus on retail and consumer banking, combined with digital transformation efforts, contributed to a 23% increase in digital sales and a 5% reduction in the cost to serve.

Banco Santander SA Financial Statement Overview

Summary

Banco Santander SA shows strong revenue growth and profitability improvements. However, high leverage and negative cash flow present significant risks. The equity ratio and ROE are strengths, but the cash flow challenges require attention.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.16B	50.80B	44.76B	54.22B	48.41B	46.76B
Gross Profit	49.84B	51.20B	59.59B	41.95B	39.01B	31.84B
EBITDA	22.76B	22.32B	19.64B	18.23B	16.87B	734.00M
Net Income	13.12B	12.57B	11.08B	9.61B	8.12B	-8.77B
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	260.32B
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	-8.63B	16.87B	45.29B	57.63B
Operating Cash Flow	17.90B	-24.16B	5.01B	27.71B	56.69B	66.15B
Investing Cash Flow	-1.93B	-3.71B	-5.37B	-3.90B	-3.71B	-7.22B
Financing Cash Flow	-5.25B	-5.51B	-2.06B	-9.96B	-1.32B	-1.91B

Banco Santander SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.44

Price Trends

50DMA

8.93

Positive

100DMA

8.24

Positive

200DMA

6.85

Positive

Market Momentum

MACD

0.18

Positive

RSI

58.74

Neutral

STOCH

34.64

Neutral

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 9.44 is below the 20-day moving average (MA) of 9.50, above the 50-day MA of 8.93, and above the 200-day MA of 6.85, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.64 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$220.38B	12.70	10.69%	5.07%	-2.96%	-13.66%
BCS	78 Outperform	$67.82B	8.98	9.83%	2.20%	16.06%	64.31%
BBVA	75 Outperform	$103.48B	9.17	18.32%	4.35%	7.86%	17.13%
ING	75 Outperform	$70.97B	11.05	12.08%	4.85%	1.13%	-1.14%
SAN	74 Outperform	$141.66B	9.80	12.85%	2.46%	-14.74%	17.03%
C	73 Outperform	$177.78B	14.01	6.64%	2.40%	0.52%	89.25%
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%

* Financial Sector Average

Performance Comparison

SAN

Banco Santander SA

9.58

4.84

102.11%

BBVA

Banco Bilbao

17.99

8.41

87.79%

BCS

Barclays

20.11

8.30

70.28%

Citigroup

97.08

38.26

65.05%

HSBC

HSBC Holdings

65.08

23.59

56.86%

ING

ING Groep

24.07

7.16

42.34%

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.Date of analysis: Aug 29, 2025