Banco Santander Sa Net Income dropped on 16.6%
29 Jan 2020 • About Banco Santander Sa (
$BNC) • By InTwits
Banco Santander Sa reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- The company has potentially unprofitable business model: ROIC is 2.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.5%.
Net Income margin decreased on 2.2 pp from 10.7% to 8.6% in FY2019. During the last 5 years Net Income margin topped in FY2018 at 10.7%.
Return on investment
The company operates at low ROIC (2.2%) and ROE (6.6%). ROIC showed almost no change in FY2019. ROE decreased slightly on 1.6 pp from 8.2% to 6.6% in FY2019. During FY2015-FY2019 ROIC topped in FY2018 at 2.3%.
Leverage (Debt)
Debt increased on 4.1% while cash dropped on 11.1%.
Banco Santander Sa has short term refinancing risk: cash is only 53.4% of short term debt.
Management team
Jose Antonio Alvarez Alvarez is a the company's CEO. Jose Antonio Alvarez Alvarez is a founder and has spent 1 year with the company. Jose Antonio Garcia Cantera is a Banco Santander Sa's CFO. Jose Antonio Garcia Cantera has spent 5 years at the company.
Financial and operational results
FY ended 30 Nov -0001
Banco Santander Sa ($BNC) key annual financial indicators| mln. € | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 74,920 | 72,578 | 74,326 | 72,849 | 76,115 | 4.5% |
| Tax | | | | 4,886 | | |
| Net Income | 5,966 | 6,204 | 6,619 | 7,810 | 6,515 | -16.6% |
Balance Sheet
|
|---|
| Cash | 77,751 | 76,454 | 137,273 | 113,663 | 101,067 | -11.1% |
| Inventory | | | | 147 | | |
| Short Term Debt | 175,373 | 149,398 | 232,902 | 186,702 | 189,286 | 1.4% |
| Long Term Debt | 226,160 | 228,869 | 163,823 | 246,619 | 261,977 | 6.2% |
Cash flow
|
|---|
| Capex | 7,664 | 6,572 | 7,450 | 10,726 | | |
| Dividends | | | | 3,118 | | |
| Acquisitions | | | | 730 | | |
Ratios
|
|---|
| Revenue growth | -0.2% | -3.1% | 2.4% | -2.0% | 4.5% | |
|
|---|
| Net Income Margin | 8.0% | 8.5% | 8.9% | 10.7% | 8.6% | -2.2% |
| CAPEX, % of revenue | 10.2% | 9.1% | 10.0% | 14.7% | | |
|
|---|
| ROIC | 1.9% | 2.0% | 2.3% | 2.3% | 2.2% | -0.2% |
| ROE | 7.1% | 6.9% | 6.7% | 8.2% | 6.6% | -1.6% |
People
|
|---|
| Insider ownership | | | | 0.8% | | |
| Employees | | | | 202,713 | | |
| Revenue/Employee, th. € | | | | 359 | | |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| Yapi Ve Kredi Bankasi As ($YKBD) | 25.3% | 17.8% | 18.8% | 51.8% | |
| Turkiye Garanti Bankasi ($39IS) | 10.3% | 20.4% | 18.6% | 50.6% | |
| Finansbank ($FBKD) | 6.9% | 16.8% | 19.0% | 50.1% | |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| |
|---|
| Median (19 companies) | 5.5% | 3.9% | 4.5% | 12.9% | 8.4% |
|---|
| Banco Santander Sa ($BNC) | | -3.1% | 2.4% | -2.0% | 4.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | 2.5% | 3.0% | 7.3% | 5.9% | |
| Barclays ($BARC) | 7.1% | 6.3% | 5.4% | 4.9% | |
| Royal Bank Of Scotland Group ($RBS) | 4.6% | 5.6% | 7.1% | 3.7% | |
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 6.0% | 3.3% | 1.9% | 2.5% | |
| |
|---|
| Median (16 companies) | 2.5% | 2.0% | 1.8% | 1.3% | 1.2% |
|---|
| Banco Santander Sa ($BNC) | 10.2% | 9.1% | 10.0% | 14.7% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | |
| |
|---|
| Median (34 companies) | 3.5% | 4.6% | 4.6% | 4.5% | 4.6% |
|---|
| Banco Santander Sa ($BNC) | 1.9% | 2.0% | 2.3% | 2.3% | 2.2% |
