Fact based stock research
Santander (BME:SAN)

ES0113900J37

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Santander stock research in summary

santander.com

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), Santander (Diversified Banks, Spain) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Santander are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives) but show below-average growth (Growth Rank of 41), and are riskily financed (Safety Rank of 5), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on Santander's financial characteristics. As the company Santander's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 41) and risky financing practices (Obermatt Safety Rank of 5), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 79% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	79
Growth Rank	41
Safety Rank	5
Combined Rank	27

Country	Spain
Industry	Diversified Banks
Index	EURO STOXX 50, IBEX 35, Customer Focus EU, Employee Focus EU, Renewables Users
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Santander

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	85	76	79
GROWTH
GROWTH	47	11	52	41
SAFETY
SAFETY	81	3	4	5
SENTIMENT
SENTIMENT	n/a	43	26	^new
360° VIEW
360° VIEW	n/a	11	28	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Santander is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	85	76	79
GROWTH
GROWTH	47	11	52	41
SAFETY
SAFETY	81	3	4	5
COMBINED
COMBINED	77	11	38	27

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Santander the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, Santander shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Santander. Price-to-Sales (P/S) is 88, which means that the stock price compared with what market professionals expect for future sales is lower than for 88% of comparable companies, indicating a good value regarding Santander's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 88% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 79. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 30% of all competitors have even lower dividend yields than Santander (a Dividend Yield Rank of 30). 70% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on Santander's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	88	86	88	88
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50	90	79	88
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	74	77	70	79
DIVIDEND YIELD
DIVIDEND YIELD	30	43	49	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	63	85	76	79

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Santander; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Santander shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Santander. Sales Growth has a rank of 54 which means that currently, professionals expect the company to grow more than 54% of its competitors. Both Profit Growth, with a rank of 66, and Stock Returns, with a rank of 61, are also above average. But Capital Growth only has a rank of 27, which means that, currently, professionals expect the company to grow its invested capital less than 73% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	15	51	75	54
PROFIT GROWTH
PROFIT GROWTH	20	47	24	66
CAPITAL GROWTH
CAPITAL GROWTH	n/a	5	41	27
STOCK RETURNS
STOCK RETURNS	98	33	74	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	11	52	41

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Santander.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 5 (better than 5% compared with alternatives), the company Santander has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Santander is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Santander. Liquidity is at 13, meaning that the company generates less profit to service its debt than 87% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 20, meaning the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. Finally, Refinancing is at a rank of 48 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 5 (worse than 95% compared with alternatives), Santander has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Santander because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	68	24	28	20
REFINANCING
REFINANCING	66	30	37	48
LIQUIDITY
LIQUIDITY	77	15	10	13
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	81	3	4	5

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Santander and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	56	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	32	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	68	48	^new
MARKET PULSE
MARKET PULSE	n/a	38	25	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	26	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Santander.
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