Banco Santander (SAN) AI Stock Analysis

• Market Cap: £105.90B
• Dividend Yield: 2.28%
• Average Volume (3M): 28.57M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.50
• Revenue Growth: 1.26%
• EPS Growth: 20.56%
• Country: ES
• Employees: 206,736
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Diversified
• EPS (TTM): 0.21
• Shares Outstanding: 14,885,325,000
• 10 Day Avg. Volume: 20,126,066
• 30 Day Avg. Volume: 28,573,212
• PEG Ratio: -0.35
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £7.50
• Price Target Upside: 5.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 81 Outperform
• Price Target: €8.00 ▲(12.20%Upside)

Banco Santander's robust financial performance and positive earnings call are the most significant drivers of the stock's score. Technical analysis supports the stock's upward trend, while valuation metrics indicate potential for growth. Challenges in specific markets were noted but are mitigated by strong overall performance.

Positive Factors

Earnings

Santander's guidance suggests a 10% or more earnings upgrade, highlighting the strong future financial outlook for the company.

Financial Performance

The net profit was significantly ahead of expectations, driven by favorable currency adjustments and better-than-expected performance in key regions.

Shareholder Value

The company plans to conduct €10bn in share buy-backs over the next two years, which is expected to enhance shareholder value.

Negative Factors

Interest Rates

Higher than expected rates in Brazil may present challenges, but Santander remains comfortable with the cost of risk guidance.

Banco Santander Business Overview & Revenue Model

Company Description

Banco Santander (SAN) is a leading global financial institution headquartered in Spain, with a significant presence in Europe, Latin America, North America, and Asia. The bank operates through various segments, including retail banking, corporate banking, and investment banking. It offers a wide range of financial products and services, such as loans, deposits, credit cards, wealth management, insurance, and asset management, catering to both individual and corporate clients.

How the Company Makes Money

Banco Santander generates revenue primarily through its retail and commercial banking operations. The bank earns interest income from loans and advances to customers, which includes mortgages, personal loans, and credit facilities provided to businesses. Additionally, Santander collects fee and commission income from services such as payment processing, asset management, and advisory services. The bank also benefits from its operations in investment banking, where it earns through underwriting, trading, and advisory services related to mergers and acquisitions. Furthermore, Banco Santander has established numerous partnerships and collaborations, enhancing its distribution networks and product offerings, which contribute to its earnings. Its diversified geographic presence also mitigates risks and supports steady revenue generation across different markets.

Banco Santander Financial Statement Overview

Summary

Banco Santander demonstrates a strong financial position with consistent revenue and profit growth, manageable leverage, and robust cash flows. Strong income statement, balance sheet, and cash flow performance indicate effective financial management.

Income Statement

Banco Santander has shown consistent revenue and profit growth over recent years. The Gross Profit Margin remains strong, indicating efficient cost management. The Net Profit Margin has also improved, reflecting enhanced profitability. A significant Revenue Growth Rate demonstrates positive business momentum.

Balance Sheet

The Balance Sheet indicates solid financial health with a reasonable Debt-to-Equity Ratio, suggesting manageable leverage levels. Return on Equity has improved, showcasing effective utilization of equity capital. The Equity Ratio is stable, ensuring a sound asset base.

Cash Flow

Strong Free Cash Flow Growth Rate highlights effective cash generation capabilities. The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash earnings. Free Cash Flow to Net Income Ratio supports financial flexibility and potential for further investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.15B	50.80B	59.59B	54.22B	48.41B	46.81B
	Gross Profit
48.76B	50.80B	59.31B	43.36B	41.02B	46.81B
	EBIT
21.66B	18.92B	16.46B	15.25B	18.15B	8.37B
	EBITDA
20.79B	22.22B	19.64B	18.23B	16.87B	0.00
	Net Income Common Stockholders
11.89B	12.57B	11.08B	9.61B	8.12B	-7.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-156.23B	383.73B	220.34B	223.07B	210.69B	153.84B
	Total Assets
1.79T	1.84T	1.80T	1.73T	1.60T	1.51T
	Total Debt
433.29B	327.72B	310.98B	282.96B	249.02B	235.27B
	Net Debt
163.69B	109.83B	64.08B	59.89B	38.33B	81.43B
	Total Liabilities
1.68T	1.73T	1.69T	1.64T	1.50T	1.42T
	Stockholders Equity
95.14B	98.60B	95.42B	89.10B	86.93B	81.48B
Cash Flow		Free Cash Flow
3.16B	49.96B	66.92B	16.87B	45.29B	57.63B
	Operating Cash Flow
3.16B	58.45B	80.56B	27.71B	56.69B	66.15B
	Investing Cash Flow
0.00	-86.32B	-80.91B	-3.90B	-3.71B	-7.22B
	Financing Cash Flow
0.00	-5.51B	-2.06B	-9.96B	-1.32B	-1.91B

Banco Santander Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAN, the sentiment is Positive. The current price of 7.13 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.52, and above the 200-day MA of 5.29, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SAN.

Banco Santander Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAN	81 Outperform	£105.90B	8.24	13.26%	2.28%	1.26%	20.56%
BBVA	76 Outperform	€75.94B	7.34	19.33%	6.21%	20.72%	27.50%
CABK	72 Outperform	€52.90B	8.57	17.33%	7.66%	12.50%	24.07%
UNI	71 Outperform	$4.90B	7.89	9.23%	2.87%	0.62%	90.00%
BKT	71 Outperform	€10.09B	9.88	17.81%	3.82%	8.08%	18.75%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%

Banco Santander Corporate Events

Santander Sells Stake in Santander Polska to Erste Group, Announces Strategic Collaboration

Banco Santander has announced the sale of 49% of its stake in Santander Bank Polska to Erste Group Bank for approximately 7 billion euros. This strategic move includes a collaboration in Corporate & Investment Banking and payments, enhancing Santander’s global platform capabilities. The transaction is expected to generate a net capital gain of 2 billion euros for Santander, improving its CET1 capital ratio and supporting its strategic focus on creating sustainable value for customers and shareholders.

Banco Santander Sells Stake in Santander Bank Polska

Banco Santander has announced the sale of a 49% stake in Santander Bank Polska to Erste Group, a strategic move that could impact its operations and market positioning in the European banking sector. This transaction may have implications for stakeholders, potentially influencing the company’s financial performance and strategic focus in the region.

Banco Santander Sells Stake in Santander Polska to Erste Bank

Banco Santander announced the sale of 49% of its stake in Santander Polska to Erste Bank, which was communicated to analysts via an audioconference. This strategic move may impact Santander’s market positioning in Poland and reflects its efforts to optimize its portfolio and strengthen its financial position.