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Banco Santander SA BNC

Morningstar Rating
GBX 407.50 0.00 (0.00%)
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Company Report

Santander: Despite Exceptional 2023 Results, Future Growth Expected to Slow Down

Santander generates around 45% of its earnings from its highly profitable Latin American operations. The subscale returns Santander has historically recorded in Europe and the U.S. have obscured the high-double-digit/early-20s returns on equity Santander generates from its Latin American operations. Santander is confident that it can significantly improve the profitability of its European and U.S. businesses, supported by higher interest rates. We wonder if Santander could boost its profitability, release capital, and rerate its valuation by trimming its portfolio, so that it operates only in areas where it has a clear competitive advantage.

Price vs Fair Value

BNC is trading at a 18% discount.
Price
GBX 405.00
Fair Value
GBX 245.00
Uncertainty
High
1-Star Price
GBX 779.41
5-Star Price
GBX 423.90
Economic Moat
Rtrwdpx
Capital Allocation
Fhgzx

Bulls Say, Bears Say

Bulls

Santander operates in regions with higher growth prospects and levels of profitability compared with its European peers.

Bears

With 70% of its earnings coming from outside the eurozone, Santander is highly exposed to currency risk, especially emerging-market currency risk.

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News

Trading Information

Previous Close Price
GBX 407.50
Day Range
GBX 403.63–413.50
52-Week Range
GBX 257.00–417.00
Bid/Ask
GBX 0.00 / GBX 0.00
Market Cap
GBX 6.38 Tril
Volume/Avg
115.3 Mil / 21.9 Mil

Key Statistics

Price/Earnings (Normalized)
7.13
Price/Sales
1.27
Dividend Yield (Trailing)
3.21%
Dividend Yield (Forward)
3.21%
Total Yield
6.28%

Company Profile

Santander's focus is on retail and commercial banking. Latin America is geographically the most significant operation, with Brazil making the largest contribution. Its continental European business is mainly in Spain and Portugal. Santander's UK presence is the result of its acquisition of Abbey building society. In the US, Santander operates a vehicle finance business and a regional bank focused on the Northeastern states.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
212,764

Competitors

Valuation

Metric
BNC
C
BBVA
Price/Earnings (Normalized)
7.1312.2110.01
Price/Book Value
0.790.631.15
Price/Sales
1.271.541.86
Price/Cash Flow
2.244.704.08
Price/Earnings
BNC
C
BBVA

Financial Strength

Metric
BNC
C
BBVA
Quick Ratio
———
Current Ratio
———
Interest Coverage
———
Quick Ratio
No chart available

Profitability

Metric
BNC
C
BBVA
Return on Assets (Normalized)
0.69%0.41%1.07%
Return on Equity (Normalized)
13.29%5.31%16.35%
Return on Invested Capital (Normalized)
———
Return on Assets
BNC
C
BBVA
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Capital Allocation
Economic Moat
Market Cap
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RY
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MUFG
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C
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TD
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UBS
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SAN
Banco Santander SA ADRWbdMknrmr$80.0 Bil

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