Banco Santander, S.A.
Banco Santander, S.A. Fundamental Analysis
Banco Santander, S.A. (BSD2.DE) shows strong financial fundamentals with a PE ratio of 10.62, profit margin of 20.13%, and ROE of 13.89%. The company generates $65.6B in annual revenue with strong year-over-year growth of 10.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSD2.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakBSD2.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateBSD2.DE shows balanced valuation metrics.
Growth Score
ExcellentBSD2.DE delivers strong and consistent growth momentum.
Financial Health Score
ModerateBSD2.DE shows balanced financial health with some risks.
Profitability Score
ModerateBSD2.DE maintains healthy but balanced margins.
Key Financial Metrics
Is BSD2.DE Expensive or Cheap?
P/E Ratio
BSD2.DE trades at 10.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BSD2.DE's PEG of 2.31 indicates potential overvaluation.
Price to Book
The market values Banco Santander, S.A. at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.91 times EBITDA. This is generally considered low.
How Well Does BSD2.DE Make Money?
Net Profit Margin
For every $100 in sales, Banco Santander, S.A. keeps $20.13 as profit after all expenses.
Operating Margin
Core operations generate 27.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.89 in profit for every $100 of shareholder equity.
ROA
Banco Santander, S.A. generates $0.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Banco Santander, S.A. generates strong operating cash flow of $78.18B, reflecting robust business health.
Free Cash Flow
Banco Santander, S.A. generates strong free cash flow of $72.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.95 in free cash annually.
FCF Yield
BSD2.DE converts 55.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BSD2.DE Stacks Against Its Sector Peers
| Metric | BSD2.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.62 | 18.66 | Better (Cheaper) |
| ROE | 13.89% | 804.00% | Weak |
| Net Margin | 20.13% | 2258.00% | Weak |
| Debt/Equity | 5.05 | 1.03 | Weak (High Leverage) |
| Current Ratio | 1.76 | 662.03 | Neutral |
| ROA | 0.76% | -24049.00% (disorted) | Weak |
BSD2.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Banco Santander, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.87%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
112.45%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-884.57%
Industry Style: Value, Dividend, Cyclical
Declining