Banco Santander SA SAN

Morningstar Rating
€10.88 −0.39 (3.44%)
View Full Chart

Company Report

Santander's Diverse Operations Support Earnings Stability

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 US 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 US 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 LOCK|n$ch<m@ premium.
Price
€11.27
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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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.

News

Trading Information

Previous Close Price
€11.27
Day Range
€10.79–11.08
52-Week Range
€8.48–13.12
Bid/Ask
€10.86 / €10.86
Shares Outstanding
14.45B
Market Cap
€157.39B
Volume/Avg
7M / 21M

Key Statistics

Price/Earnings (Normalized)
12.17
Price/Sales
2.69
Dividend Yield (Trailing)
2.13%
Dividend Yield (Forward)
2.25%
Dividend Payment Schedule
May, Nov
Total Yield
4.14%

Company Profile

Santander runs five global businesses: retail and commercial banking, corporate and investment banking, wealth management and insurance, payments, and a digital platform Openbank. Spain is the largest single profit contributor, followed by Brazil, the United States, Mexico and the United Kingdom.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
185,279

Competitors

Valuation

Metric
SAN
HSBC
C
Price/Earnings (Normalized)
12.178.3813.22
Price/Book Value
1.481.501.06
Price/Sales
2.693.992.32
Price/Cash Flow
4.035.917.05
Price/Earnings
SAN
HSBC
C

Financial Strength

Metric
SAN
HSBC
C
Quick Ratio
———
Current Ratio
———
Interest Coverage
———
Quick Ratio
No chart available

Profitability

Metric
SAN
HSBC
C
Return on Assets (Normalized)
0.81%0.84%—
Return on Equity (Normalized)
14.46%15.18%—
Return on Invested Capital (Normalized)
———
Return on Assets
SAN
HSBC
C

Banks - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPMorgan Chase & Co
JPM
LOCK|s$L&nqjLOCK|@z$892B
Bank of America Corp
BAC
LOCK|$!Vbk^LOCK|tyQ$351B
HSBC Holdings PLC ADR
HSBC
LOCK|dn$>BbLOCK|mnFD#$295B
Royal Bank of Canada
RY
LOCK|%!^&@cLXLOCK|G$w$282B
Wells Fargo & Co
WFC
LOCK|$$@JFKLOCK|^r%$248B
Mitsubishi UFJ Financial Group Inc ADR
MUFG
LOCK|%^>Z<<bLOCK|Zh$241B
The Toronto-Dominion Bank
TD
LOCK|?bqLVnLOCK|fD$206B
Citigroup Inc
C
LOCK|y!$fz@LOCK|MG$203B
Banco Santander SA ADR
SAN
LOCK|??&pqYLOCK|Pp<k$182B
UBS Group AG Registered Shares
UBS
LOCK|%^x<x$bLOCK|q&@@$144B

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