Banco Santander Sa CAPEX surged on 14.5% in 2015 and Revenue showed almost no change
27 Jan 2016 • About Banco Santander Sa (
$BNC) • By InTwits
Banco Santander Sa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco Santander Sa doesn't have a profitable business model yet: 2015 ROIC is 1.9%
- Banco Santander Sa has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 7,664 in 2015, 6,695 in 2014, 1,877 in 2013, 2,161 in 2012, 1,858 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Banco Santander Sa ($BNC) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 82,796 | 80,999 | 72,976 | 75,046 | 74,920 | -0.2% |
| Net Income | 5,330 | 2,295 | 4,175 | 5,816 | 5,966 | 2.6% |
Balance Sheet
|
|---|
| Cash | 96,524 | 118,488 | 77,103 | 69,428 | 77,751 | 12.0% |
| Short Term Debt | 91,822 | 102,224 | 109,397 | 155,369 | 175,373 | 12.9% |
| Long Term Debt | 220,364 | 224,207 | 191,616 | 214,021 | 226,160 | 5.7% |
Cash flow
|
|---|
| Capex | 1,858 | 2,161 | 1,877 | 6,695 | 7,664 | 14.5% |
Ratios
|
|---|
| Revenue growth | 9.8% | -2.2% | -9.9% | 2.8% | -0.2% | |
| Net Income Margin | 6.4% | 2.8% | 5.7% | 7.7% | 8.0% | 0.2% |
| CAPEX, % of revenue | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% | 1.3% |
| ROIC | 1.8% | 0.6% | 1.1% | 1.7% | 1.9% | 0.2% |
| ROE | 7.1% | 3.1% | 5.9% | 7.7% | 7.1% | -0.6% |
Revenue and profitability
Banco Santander Sa's Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 10.2%. Banco Santander Sa's CAPEX/Revenue increased on 7.6 pp from 2.7% in 2012 to 10.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at low ROIC (1.92%) and ROE (7.07%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.63 pp from 7.7% to 7.1% in 2015.
Leverage (Debt)
Debt increased on 8.7% in 2015 while cash jumped on 12.0% in 2015.
Appendix 1: Peers in Banks
Below we provide Banco Santander Sa benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | 7.1% | 9.1% | 11.7% | 23.9% | |
| |
|---|
| Median (43 companies) | 10.4% | 10.2% | 4.8% | 12.1% | 1.5% |
|---|
| Banco Santander Sa ($BNC) | | -2.2% | -9.9% | 2.8% | -0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| |
|---|
| Median (40 companies) | 2.4% | 2.2% | 2.8% | 2.1% | 2.3% |
|---|
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (43 companies) | 7.1% | 6.4% | 5.7% | 4.5% | 3.1% |
|---|
| Banco Santander Sa ($BNC) | 1.8% | 0.6% | 1.1% | 1.7% | 1.9% |
