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Banco Santander SA SAN

Morningstar Rating
€4.75 −0.03 (0.68%)
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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

SAN is trading at a 20% discount.
Price
€4.67
Fair Value
€7.10
Uncertainty
High
1-Star Price
€8.71
5-Star Price
€5.16
Economic Moat
Hgdnzwl
Capital Allocation
Csnk

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
€4.78
Day Range
€4.754.83
52-Week Range
€3.014.83
Bid/Ask
/
Market Cap
€74.28 Bil
Volume/Avg
16.0 Mil / 37.5 Mil

Key Statistics

Price/Earnings (Normalized)
7.27
Price/Sales
1.30
Dividend Yield (Trailing)
2.96%
Dividend Yield (Forward)
2.96%
Total Yield
6.14%

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
SAN
C
BBVA
Price/Earnings (Normalized)
7.2712.2110.01
Price/Book Value
0.800.631.15
Price/Sales
1.301.541.86
Price/Cash Flow
2.294.704.08
Price/Earnings
SAN
C
BBVA

Financial Strength

Metric
SAN
C
BBVA
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
SAN
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
SAN
C
BBVA
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Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPM
JPMorgan Chase & CoHrkqxgqvXttfg$551.8 Bil
BAC
Bank of America CorpNfwcqwlzMmrk$301.5 Bil
WFC
Wells Fargo & CoBjdjwmdrQnx$212.2 Bil
HSBC
HSBC Holdings PLC ADRGxxbdvshnNhjms$156.0 Bil
RY
Royal Bank of CanadaMqknkwkhsZyy$138.0 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRNyjpxkczRcgz$119.2 Bil
C
Citigroup IncKjvxzrzrWjvgy$119.2 Bil
TD
The Toronto-Dominion BankSwxnmfwlnLsnzp$104.0 Bil
UBS
UBS Group AGHdtwftlgMjkgfb$90.7 Bil
SAN
Banco Santander SA ADRKnxqgXdqhp$80.0 Bil

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