Banco Santander, S.A. Fundamental Analysis (XETRA: BSD2.DE)
Banco Santander, S.A. Fundamental Analysis (XETRA: BSD2.DE)
Banco Santander, S.A. (XETRA: BSD2.DE) shows moderate financial fundamentals with a PE ratio of 11.94, profit margin of 23.91%, and ROE of 15.54%. The company generates $64.0B in annual revenue with weak year-over-year growth of 1.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.1/100 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
ExcellentBSD2.DE trades at attractive valuation levels.
Growth Score
ModerateBSD2.DE shows steady but slowing expansion.
Financial Health Score
WeakBSD2.DE carries high financial risk with limited liquidity.
Profitability Score
ExcellentBSD2.DE achieves industry-leading margins.
Key Financial Metrics
Is BSD2.DE Expensive or Cheap?
P/E Ratio
BSD2.DE trades at 11.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BSD2.DE's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Banco Santander, S.A. at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.41 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 $23.91 as profit after all expenses.
Operating Margin
Core operations generate 28.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.54 in profit for every $100 of shareholder equity.
ROA
Banco Santander, S.A. generates $0.80 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 $60.56B, reflecting robust business health.
Free Cash Flow
Banco Santander, S.A. generates strong free cash flow of $56.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.99 in free cash annually.
FCF Yield
BSD2.DE converts 32.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How BSD2.DE Stacks Against Its Sector Peers
| Metric | BSD2.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.94 | 20.75 | Better (Cheaper) |
| ROE | 15.54% | 644.00% | Weak |
| Net Margin | 23.91% | -1529.00% (disorted) | Strong |
| Debt/Equity | 3.18 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.11 | 830.27 | Weak Liquidity |
| ROA | 0.80% | -577.00% (disorted) | Weak |
BSD2.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
130.76%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
287.22%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
47.04%
Industry Style: Value, Dividend, Cyclical
High Growth