Banco Santander US (SAN)
NYSE:SAN
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Banco Santander SA
(NYSE:SAN)
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Rating:64Neutral
Price Target:
$14.50
▲(13.19% Upside)
Action:Downgraded
Date:06/05/26
The score is driven primarily by mixed financial quality: improving profitability and revenue trends are offset by elevated leverage and negative operating/free cash flow in 2024–2025. Technicals are supportive with a clear uptrend, and valuation is favorable with a low P/E and moderate dividend yield.
Positive Factors
Retail & Commercial Scale (UK acquisition)
Completing the TSB acquisition materially expands Santander's UK retail footprint and deposit base, increasing cross-sell opportunity to consumers and SMEs. The deal strengthens geographic diversification and scale economics, supporting durable fee and NII generation and potential cost synergies over the medium term.
Negative Factors
Elevated Leverage
Significantly higher leverage reduces financial flexibility and raises sensitivity to adverse funding or credit events. A debt-to-equity near 5x limits room for cyclical provisioning, makes regulatory capital management more complex, and increases the likelihood of costly external funding or capital actions during economic stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail & Commercial Scale (UK acquisition)
Completing the TSB acquisition materially expands Santander's UK retail footprint and deposit base, increasing cross-sell opportunity to consumers and SMEs. The deal strengthens geographic diversification and scale economics, supporting durable fee and NII generation and potential cost synergies over the medium term.
Read all positive factors
Banco Santander SA (SAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$198.63B
Dividend Yield1.85%
Average Volume (3M)8.82M
Price to Earnings (P/E)10.8
Beta (1Y)1.10
Revenue Growth-14.46%
EPS Growth36.76%
CountryUS
Employees206,736
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.88
Shares Outstanding14,689,319,000
10 Day Avg. Volume9,553,858
30 Day Avg. Volume8,819,697
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 Cap2.37
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit10.40
Enterprise Value/Ebitda21.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.19
Revenue Forecast (FY)$73.34B
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:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call presented a strong set of FY'25 results with multiple encouraging metrics (record profit, customer growth, higher RoTE, improved efficiency, fee momentum, strong wealth/CIB/payments performance) and a clear strategic rationale for the Webster bolt-on to accelerate U.S. returns. Key near-term negatives are the expected CET1 compression (~140 bps), sizable integration and restructuring costs (EUR ~800m), shareholder dilution from the share consideration, and some operational timing risk (delayed Openbank rollout). Management emphasized disciplined capital hierarchy, conservative synergy recognition and pathways to restore CET1 above 13% by 2027, and set ambitious group RoTE targets (>20% by 2028). Overall, the positives — strong underlying results, credible transformation gains, and an acquisition with quantified synergies and accretion — outweigh the near-term capital and execution headwinds.Positive Updates
Record Annual Profit and Earnings Growth
Reported best-ever annual profit of EUR 14.1 billion for FY'25 (up 12% YoY; +15% YoY ex-Argentina). Quarterly profit also hit a record. Earnings per share rose 17%.
Negative Updates
Near-term CET1 Ratio Impact from Webster
Acquisition expected to reduce group CET1 by ~140 bps (cash portion ~110 bps), leaving CET1 around 12.8% at closing (management expects to be back above 13% in 2027).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Profit and Earnings Growth
Reported best-ever annual profit of EUR 14.1 billion for FY'25 (up 12% YoY; +15% YoY ex-Argentina). Quarterly profit also hit a record. Earnings per share rose 17%.
Read all positive updates
Company Guidance
The management gave detailed forward guidance: ex‑M&A for 2026 they expect revenue to grow mid‑single‑digit in constant euros (double‑digit including M&A), fee growth to outpace NII, costs to be lower in absolute terms (constant euros), cost of risk broadly stable and attributable profit to increase, with group CET1 close to 12.8–13.0% by end‑2026; for 2027 they target double‑digit revenue growth, net profit up mid‑teens and CET1 >13%. On Webster, the headline consideration is €12.2bn (≈€10.3bn in euros), paid 65% cash/35% shares (exchange ratio 2.0548), implying ~6.8x P/E including synergies, ~10x 2028 consensual P/E and ~2x Q4’25 TBV; the deal is expected to reduce group CET1 by ~140 bps at closing (group CET1 ≈12.8% at close, back >13% in 2027), deliver ~€800m pre‑tax cost synergies phased in by end‑2028 (≈€480m HQ/branch, €280m tech & ops, €35m other) plus ~€200m from One Transformation and €100m balance‑sheet optimisation, cut the combined cost base to ~€3.5bn and push the combined efficiency ratio below 40% by 2028. Financial returns: Santander U.S. RoTE to ~18% post‑AT1 by 2028, 7–8% EPS accretion in 2028, ~15% cash‑on‑cash ROIC, while the group targets RoTE in excess of 20% in 2028; they reiterated at least €10bn of buybacks for ’25–’26 and a new up‑to €5bn buyback starting immediately.Banco Santander SA Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 119.89B | 129.91B | 121.87B | 87.03B | 61.50B |
| Gross Profit | 48.02B | 51.20B | 46.97B | 43.36B | 41.02B |
| EBITDA | 21.86B | 22.32B | 19.64B | 18.23B | 17.30B |
| 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 | 318.20B | 237.41B | 268.41B | 334.02B | 264.01B |
| Total Debt | 496.64B | 483.38B | 310.98B | 425.75B | 334.39B |
| 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 | -22.49B | -32.65B | -8.63B | 16.87B | 45.29B |
| Operating Cash Flow | -14.84B | -24.16B | 5.01B | 27.71B | 56.69B |
| Investing Cash Flow | 534.00M | -3.71B | -5.37B | -3.90B | -3.71B |
| Financing Cash Flow | -14.20B | -5.51B | -2.06B | -9.96B | -1.32B |
Banco Santander SA Technical Analysis
Positive
12.81
Price Trends
12.27
Positive
12.00
Positive
11.30
Positive
Market Momentum
0.31
Negative
66.94
Neutral
84.86
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 12.81 is above the 20-day moving average (MA) of 12.55, above the 50-day MA of 12.27, and above the 200-day MA of 11.30, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 84.86 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $137.55B | 11.26 | 18.94% | 3.27% | -10.12% | 13.24% | |
73 Outperform | $325.61B | 14.69 | 12.07% | 4.14% | -6.12% | 12.49% | |
71 Outperform | $90.91B | 12.37 | 12.71% | 4.14% | 10.57% | 19.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $245.33B | 15.54 | 7.53% | 1.94% | 3.02% | 27.74% | |
64 Neutral | $198.63B | 10.80 | 15.73% | 1.85% | -14.46% | 36.76% | |
62 Neutral | $88.76B | 9.48 | 9.46% | 1.71% | 12.95% | 21.64% |
* Financial Sector Average
SAN
Banco Santander SA
13.50
5.65
71.87%
BBVA
Banco Bilbao
24.48
10.16
70.94%
BCS
Barclays
26.31
9.05
52.46%
C
Citigroup
143.06
65.46
84.36%
HSBC
HSBC Holdings
94.97
38.78
69.02%
ING
ING Groep
31.36
11.56
58.35%
Banco Santander SA Corporate Events
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.