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Banco Santander SA (SAN)
NYSE:SAN
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Banco Santander SA
(NYSE:SAN)
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Rating:74Outperform
Price Target:
$11.00
â–²(6.90% 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
$152.58B
Dividend Yield2.26%
Average Volume (3M)3.92M
Price to Earnings (P/E)10.7
Beta (1Y)0.86
Revenue Growth-14.74%
EPS Growth17.03%
CountryUS
Employees206,736
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.25
Shares Outstanding14,885,325,000
10 Day Avg. Volume2,925,154
30 Day Avg. Volume3,922,343
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)0.73
Price to Sales (P/S)1.42
P/FCF Ratio-2.21
Enterprise Value/Market Cap2.78
Enterprise Value/Revenue6.19
Enterprise Value/Gross Profit8.80
Enterprise Value/Ebitda15.70
Forecast
1Y Price Target
$5.00Price Target Upside-51.41% Downside
Rating ConsensusHold
Number of Analyst Covering1
Banco Santander SA Business Overview & Revenue Model
Company DescriptionBanco 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 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 improved profitability. However, high leverage and negative cash flow are significant concerns, indicating potential financial risks.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 | 68.54B | 50.80B | 44.76B | 41.95B | 39.01B | 60.50B |
| Gross Profit | 48.26B | 51.20B | 59.59B | 43.36B | 41.02B | 34.39B |
| EBITDA | 27.04B | 22.32B | 19.64B | 18.23B | 16.87B | 734.00M |
| Net Income | 13.35B | 12.57B | 11.08B | 9.61B | 8.12B | -8.77B |
Balance Sheet | ||||||
| Total Assets | 1.82T | 1.84T | 1.80T | 1.73T | 1.60T | 1.51T |
| Cash, Cash Equivalents and Short-Term Investments | 175.56B | 237.41B | 268.41B | 223.07B | 210.69B | 153.84B |
| Total Debt | 311.96B | 483.38B | 310.98B | 282.96B | 249.02B | 260.32B |
| Total Liabilities | 1.71T | 1.73T | 1.69T | 1.64T | 1.50T | 1.42T |
| Stockholders Equity | 100.50B | 98.60B | 95.42B | 89.10B | 86.93B | 81.48B |
Cash Flow | ||||||
| Free Cash Flow | 31.66B | -32.65B | -8.63B | 16.87B | 45.29B | 57.63B |
| Operating Cash Flow | 38.62B | -24.16B | 5.01B | 27.71B | 56.69B | 66.15B |
| Investing Cash Flow | -1.97B | -3.71B | -5.37B | -3.90B | -3.71B | -7.22B |
| Financing Cash Flow | -9.39B | -5.51B | -2.06B | -9.96B | -1.32B | -1.91B |
Banco Santander SA Technical Analysis
Positive
10.29
Price Trends
9.63
Positive
8.90
Positive
7.42
Positive
Market Momentum
0.21
Positive
59.05
Neutral
50.47
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 10.29 is above the 20-day moving average (MA) of 10.16, above the 50-day MA of 9.63, and above the 200-day MA of 7.42, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 50.47 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $248.57B | 14.31 | 10.69% | 4.54% | -2.96% | -13.66% | |
78 Outperform | $72.40B | 9.63 | 9.83% | 2.08% | 16.06% | 64.31% | |
75 Outperform | $110.83B | 9.77 | 18.32% | 4.07% | 7.86% | 17.13% | |
74 Outperform | $152.58B | 10.68 | 12.85% | 2.26% | -14.74% | 17.03% | |
73 Outperform | $76.73B | 11.89 | 12.08% | 4.52% | 1.13% | -1.14% | |
70 Outperform | $179.93B | 14.45 | 6.64% | 2.33% | 0.52% | 89.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SAN
Banco Santander SA
10.29
5.42
111.29%
BBVA
Banco Bilbao
19.25
9.20
91.54%
BCS
Barclays
20.97
9.16
77.56%
C
Citigroup
97.74
37.01
60.94%
HSBC
HSBC Holdings
72.21
29.09
67.46%
ING
ING Groep
25.78
9.12
54.74%
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.