Thursday February 25, 2021 25 February 2021

NEWS BITES - EUROPE

Banco Santander, S.A. (MA:SAN), Spain's largest Bank by market cap, hit a 52-week high of EUR3.07 during the day.

Banco Santander's stock price has increased 1.0c (0.3%) from its previous trading session to close at EUR2.97. Compared with the IBEX 35 Index which rose 48.2 points (0.6%) in the day, the relative price change was -0.2%.

There were 67,700,000 shares worth EUR201.1 million ($244.2 million) traded today. The volume was 0.6 times the average daily trading volume of 112.1 million shares.

SAN Stock Dashboard (traded in EUR)

CurrencyEUR 1 = USD 1.21SectorBank
Feb 25 closeEUR2.97Market CapEUR49.4 billion [$59.9 billion]
P/E (FY2019)14.5EPS (FY2019)36c
EPS Growth (FY2019 vs FY2018)-20%DPS (TTM)22c
Ave Daily Volume112,107,750 sharesShares Outstanding16,618,115,000
52-Week Range (In EUR)0.85 - 3.07

SAN ADR Dashboard (traded in $)

Home ExchangeSpainRatio1 ADR equals 1 ordinary share
CodeSANTypeSponsored
ISINUS05964H1059Feb 24 close$3.60
CUSIP05964H105EPS Growth (FY2019 vs FY2018)-20%
*No. Held by Institutions265,228,283Ave Daily Volume11,842,377 ADRs
% of shares outstanding1.6%

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
MadridSANEUR2.97112,107,73295.90.6
LondonBNCGBX254.647,304,8413.90.1
XetraBSD2EUR2.96533,4110.20.3
Total100.00

1 EUR= 0.0117 GBX [Pence Sterling];

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

INDEX

SECTION 1 RECENT NEWS

SECTION 2 CORPORATE PROFILE

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 TODAY'S BEARISH SIGNALS

SECTION 6 ONGOING BEARISH PARAMETERS

SECTION 7 BANK METRICS

SECTION 8 NEWS ARCHIVES (APR 2017 - NOV 2020)

SECTION 9 CURRENCY SYNOPSIS: EURO (EUR)

SECTION 10 HISTORICAL PERSPECTIVE

SECTION 11 MACROECONOMIC INDICATORS

SECTION 12 CREDIT RATING SUMMARY

GLOSSARY

DATA & ARCHIVE DOWNLOAD CENTER

SAN: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON - STOCK IN BANK SECTOR AND STOCK IN INDICES

SAN: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - SAN PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ USD vs EUR EXCHANGE RATE CHARTS IN HTML

SECTION 1 RECENT NEWS

1.1 Share Capital

December 29 2020: Banco Santander Sanofi: Information concerning the total number of voting rights and shares - November 2020

Information concerning the total number of voting rights and shares, provided pursuant to article L. 233-8 II of the Code de commerce

Source: West Corporation

December 10 2020: Banco Santander announces Right Issue

Banco Santander has announced a 1 for 1 rights issue effective Friday, December 11. To subscribe to new shares the price has been fixed at 50.0c.

November 30 2020: Banco Santander Sanofi: Disclosure of trading in own shares

Disclosure of trading in own shares from November 23, 2020 to November 27, 2020

Attachment

2020_11_27_Reporting_action_SANOFI_EN

Source: West Corporation

1.2 Acquisitions

January 11: Banco Santander Sanofi to acquire Kymab, adding KY1005 to its pipeline, a human monoclonal antibody targeting key immune system regulator OX40L

Sanofi and Kymab, a clinical-stage biopharmaceutical company developing fully human monoclonal antibodies with a focus on immune-mediated diseases and immuno-oncology therapeutics, have entered into an agreement under which Sanofi will acquire Kymab for an upfront payment of approximately $1.1 billion and up to $350 million upon achievement of certain milestones.

Source: West Corporation

1.3 Press Releases

February 12: Banco Santander The Lancet publishes Libtayo(Registered) (cemiplimab) data showing extended overall survival in patients with first-line advanced non-small cell lung cancer with PD-L1 expression of 50%

PARIS and TARRYTOWN, N.Y. aEUR February 12, 2021 aEUR The Lancet today published results from a pivotal trial designed to evaluate the investigational use of the PD-1 inhibitor LibtayoA(Registered) (cemiplimab) compared to platinum-doublet chemotherapy in patients with locally advanced or

Source: West Corporation

February 10: Banco Santander FDA approves Libtayo (Cemiplimab-rwlc) as first immunotherapy indicated for patients with advanced basal cell carcinoma

The U.S. Food and Drug Administration (FDA) has approved the PD-1 inhibitor LibtayoA(Registered) (cemiplimab-rwlc) as the first immunotherapy indicated for patients with advanced basal cell carcinoma (BCC) previously treated with a hedgehog pathway inhibitor (HHI) or for whom an HHI is not appropriate. Full approval was granted for patients with locally advanced BCC and accelerated approval was granted for patients with metastatic BCC.

Source: West Corporation

February 05: Banco Santander Capital Markets Day 2021: Sanofi progresses on its strategy to drive growth across its businesses and innovation with emerging leadership in immunology

Execution of strategic plan announced in December 2019 is well underway with key growth drivers delivering New business focus in General Medicines and Consumer Healthcare designed to accelerate SanofiaEUR(TradeMark)s growth, cash flow generation, and improve profitability

Source: West Corporation

December 18 2020: Banco Santander Availability of the Q4 2020 Memorandum for modelling purposes

Paris, France - December 17, 2020 - Sanofi announced today that its Q4 2020 Memorandum for modelling purposes is available on the "Investors" page of the company's website: https://www.sanofi.com/en/investors/financial-results-and-events/financial-results/Q4-results-2020

Source: West Corporation

December 15 2020: Banco Santander Sanofi renews partnership with the WHO to fight Neglected Tropical Diseases and eliminate sleeping sickness before 2030

Sanofi has signed on December 10th a renewed partnership agreement with the World Health Organization (WHO), consolidating a 20-year collaboration to fight some of the most Neglected Tropical Diseases (NTDs) and supporting the WHO in its commitment to sustainably eliminate sleeping sickness before 2030.

Source: West Corporation

December 11 2020: Banco Santander CHMP recommends approval of Plavix (clopidogrel) with aspirin in adults for certain types of strokes

The European Medicines AgencyaEUR(TradeMark)s Committee for Medicinal Products for Human Use (CHMP) has adopted a positive opinion for an additional indication for PlavixA(Registered) (clopidogrel) in adult patients with high-risk transient ischemic attack (TIA) or minor ischemic stroke (IS). This new indication includes Plavix used alongside aspirin within 24 hours of an event and continued for 21 days, followed by long-term single anti-platelet therapy.

Source: West Corporation

December 10 2020: Banco Santander Sanofi and GSK announce a delay in their adjuvanted recombinant protein-based COVID-19 vaccine program to improve immune response in the elderly

Phase 1/2 interim results showed an immune response comparable to patients who recovered from COVID-19 in adults aged 18 to 49 years Insufficient response in older adults demonstrates the need to refine the concentration of antigen in order to provide high-level immune response across all age groups Companies plan a Phase 2b study with an improved antigen formulation With support from BARDA as part of Operation Warp Speed, study to start in February 2021, including a proposed comparison with an authorized COVID-19 vaccine Product availability now expected in Q4 2021 pending successful completion of the development plan

Source: West Corporation

November 30 2020: Banco Santander Dupixent(Registered) (dupilumab) approved by European Commission as first and only biologic medicine for children aged 6 to 11 years with severe atopic dermatitis

Pivotal trial showed more than four times as many children achieved itch reduction and more than three times as many children achieved clear or almost clear skin with Dupixent plus topical corticosteroids (TCS) compared to TCS alone

Source: West Corporation

SECTION 2 CORPORATE PROFILE

2.1 Activities

Banco Santander SA. (the Bank) is a financial group that offers a range of financial products.

2.2 Contact Details

Websitehttp://www.gruposantander.com
Physical AddressCiudad Grupo Santander Boadilla del Monte Madrid, 28660 Spain

2.3 Industry & Sector

Classification LevelName of Sector
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials
Business SectorBanking & Investment Services

SECTION 3 TODAY'S BULLISH SIGNALS

3.1 Momentum Up 2.4% Past Week

Banco Santander outperformed the IBEX35 index in 3 out of 5 days. The price ranged between a low of EUR2.86 on Feb 18 and a high of EUR2.98 on Feb 19.

FebBanco SantanderClose price [EUR]Price change %Relative change % *Comment
Thu 18Falls for a second consecutive day, a two-day fall of 1.7%2.86-1.0-0.5Week-low of 2.86
Fri 19Offers lowest Price Earnings in IBEX 35 Index, despite price rise2.984.23.0Week-high of 2.98; Top Rise
Mon 22Drops 2.7%2.9-2.7-1.5Steepest Fall
Tue 23Offers lowest Price Earnings in IBEX 35 Index, despite price rise2.951.70.004Up 18.47% in the past month
Wed 24Up 2.1% in 2 days2.960.30.1Rises for a second consecutive day

* Relative change is price change of stock with respect to Benchmark Index, IBEX35 index.

3.2 Rank in the top 25% by Relative Valuation in the Spanish market

DescriptionValueRank
Price to Book Value0.6In Top 17%
P/E * P/NTA8.54In Top 25%

3.3 Rank in the top 20% by Price Performance in the Spanish market

DescriptionValueRank
Rel Strength 6 mo98In Top 3%
PV1000 [1 yr] $1,668In Top 13%
1-month Price Change %19.3In Top 17%
Price/MAP501.1In Top 20%

3.4 Uptrend

Beta > 1 combined with price rise. The Beta of the stock is 1.5.

Exponential Moving Average Price of 1.1 and positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 2.89 minus the 26-day EMA of 2.78 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

- The price to 50-day EMAP ratio is 1.1, a bullish indicator. In the past 50 days this ratio has exceeded 1.1, 37 times suggesting further upside. The 50-day EMAP has increased to EUR2.58. An increase is another bullish indicator.

Past Month:

- Rises to Falls: In the past month the number of rises outnumbered falls 13:8 or 1.6:1.

Past Quarter:

- In the last three months the stock has hit a new 52-week high fourteen times, pointing to a significant uptrend.

The Best 3 weeks in the past quarter

In the past quarter the week beginning Monday December 07 saw the highest weekly rise of 51.8% for a relative price increase of 54.9%.

Mon-FriChange %IBEX35 index Change %RPC %Vol Ind [1 is avg]
Dec 07-1151.8-3.154.90.8
Nov 30-Dec 0415.81.614.21.2
Feb 01-0515.35.99.40.6

Relative Strength (6 months) 98 percentile:

- The stock has a 6-month relative strength of 98 in the Spanish market of 120 stocks which means it is beating 98% of the market.

- A price rise combined with a high relative strength is a bullish signal.

3.5 Undervaluation

Price/Earnings:

Banco Santander stock is trading at the eleventh lowest P/E multiple in the IBEX 35 Index.

Earnings Yield of 6.9% > Spanish ave of 1.5% > Bond Yield of 0.4%:

- Earnings yield of 6.9% is greater than the Spanish average earning yield of 1.5%.

- The earnings yield of 6.9% is 17.5 times the 10-year bond yield of 0.4%.

(All figures in %)

Earnings Yield6.9
Spanish avg1.5
Bond Yield0.4

3.6 Other Bullish Signals

- Net profit margin has averaged 17.6% in the last 3 years. This is considered superior and suggests a high margin of safety.

- As per the Du Pont analysis, Return on Equity is less than stellar at 7.3%. This is computed as net profit margin of 16.5% times asset turnover [sales/assets] of 0.03 times leverage factor [total assets/shareholders' equity] of 13.8.Also, this has deteriorated from 8.7% last year.

ROE (%)Profit Margin (%)Asset TurnoverEquity Multiplier
Current Year7.316.50.0313.8
Previous Year8.719.20.0313.6

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Present Value of EUR1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVEUR1000 > 1,180

PVEUR1,0003 mo ago1 yr ago3 yrs ago
SAN.MAEUR2,031EUR1,486EUR1,181
Bank sectorEUR1,136EUR925EUR659
IBEX 35 IndexEUR1,024EUR899EUR847

4.2 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 1.3

3-Year price change of 1.4% for Banco Santander outperformed the change of -15.3% in the IBEX35 index for a relative price change of 16.7%.

Price Change %QuarterYear3 Years
Banco Santander103.148.61.4
Bank sector13.7-9.7-34.1
IBEX35 index1.6-12.3-15.3

4.3 Moving Annual Return of 48.6% in the past year:

Moving Annual Return was 48.6% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 24.7%. The Moving Annual Return has been positive in 3 of the last 5 years.

SANClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
Feb 252.97-48.6-48.6
1 Yr ago20.16(11.5)7(4.5)
2 Yrs ago2.260.21(22.9)7.1(15.8)
3 Yrs ago2.930.218.98.327.2
4 Yrs ago2.460.1955.712.167.8

Close 5 years ago EUR1.58

Prices are adjusted for a bonus share. On November 16, 2020 shareholders received 1 additional share for every 23 shares held prior to that date.

4.4 MCap: 5-Year Increase of EUR121 million [$147 million]

In the past 5 years Market Capitalization has increased by EUR120.9 million (0%) from EUR49.2 billion to EUR49.4 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 3 out of 5 years.

PriceMCap (EUR B)MCap ($ B)
LastEUR2.9749.459.9
1 Year agoEUR2.058.363.3
2 Years agoEUR2.266776
3 Years agoEUR2.9391.2112.2
4 Years agoEUR2.4673.677.9
5 Years agoEUR1.5849.254.3

4.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 5.5%

TSR %1 yr3 yrs5 yrs
SAN.MA48.65.620.7

4.6 Increased Volume, up 25% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 25.0% to 112.1 million shares.

Avg. Daily Volume Traded 12 months ended Feb 25, million shares

YearADVT
2021112.1
202052.9
201975.4
201877.9
201789.7

4.7 Satisfies one criteria of Benjamin Graham

- The P/E of 14.5 multiplied by the P/NTA of 0.6 is 8.5. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 5 TODAY'S BEARISH SIGNALS

5.1 Overbought/Bearish Signals:

- The Stochastic indicator of 89.1 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 6 ONGOING BEARISH PARAMETERS

6.1 Total Shares on Issue: 5-Year Increase of 29.9%

In the past 5 years total shares on issue have increased by 3.8 billion (29.9%) from 12.6 billion to 16.3 billion. Based on a dynamic start date of 5 years ago, there has been no decline in issued capital over the last 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue
201916,348,415,883
201816,150,090,739
201715,394,458,789
201614,789,880,000
201514,559,590,740
201412,584,000,000

6.2 EPS growth [FY2019 vs FY2018] of -20.0%:

FYEPS (c)Growth %
201936.0-20.0
201845.012.5

6.3 Declining VWAP, down 32% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has decreased by 32.0% to EUR1.37. .

Past five years, 12 months ended Feb 25 (EUR)

YearHigh PriceVWAPLow Price
20213.071.370.85
20202.562.221.88
20192.982.472.06
20183.142.892.46
20172.652.021.46

6.4 Declining share turnover, down 57% in 5 years

In the past five years, average daily share turnover has decreased 56.6% to EUR148.2 million ($180.1 million). This suggests decreased liquidity.

Past five years, 12 months ended Feb 25 (EUR million)

YearAverage Daily Turnover
2021148.2
2020208.3
2019321.2
2018407.4
2017341.5

6.5 Satisfies 1 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

SECTION 7 BANK METRICS

7.1 Bank Metrics (FY2019)

DescriptionEUR B FY2019EUR B FY2018]Change
Interest Income56.8 54.3 Up 4.5%
Interest Expense21.5 20 Up 7.6%
Provision3.5 2.2 Up 57%

Favourable Changes:

- Interest Income up 4.5% from EUR54.3b to EUR56.8b

Unfavourable Changes:

- Interest Expense up 7.6% from EUR20b to EUR21.5b

- Provision up 57% from EUR2.2b to EUR3.5b

SECTION 8 NEWS ARCHIVES (APR 2017 - NOV 2020)

HTML PAGES ARE AVAILABLE TO EXPORT AS FOLLOWS:

http://www.buysellsignals.net/BuySellSignals/report/Spain/Stock/Daily/Html/SAN_Corporate_Wire.html

SECTION 9 CURRENCY SYNOPSIS: EURO (EUR)

9.1 % Change of USD vs Currency Basket Period-Based

In the past three years the US Dollars rose 1.1% against the Euro. However, in the past year the US Dollars fell 10.9% against the Euro.

LastCountry1-day %1-week %1-Year %3-Yrs %
USD1=0.822EUREuropean Union-0.2-1.0-10.91.1
USD1=8.275SEKSweden-0.1-0.6-15.01.3
USD1=0.707GBPUnited Kingdom-0.2-1.9-8.6-1.2
USD1=8.38NOKNorway-1.0-1.4-10.46.8
USD1=1.256AUDAustralia-0.6-2.7-17.1-1.6
USD1=6.457CNYChina-0.1--8.11.9
USD1=105.867JPYJapan0.6--4.4-0.9
USD1=1.251CADCanada-0.6-1.5-5.8-0.9
USD1=1.0USDUnited States Of America0.0---
USD1=20.389MXNMexico-0.70.87.19.9
USD1=1,107.692KRWSouth Korea-0.20.1-9.12.9
USD1=7.755HKDHong Kong---0.5-0.9
USD1=0.907CHFSwitzerland0.20.9-7.4-3.1
USD1=1.343NZDNew Zealand-1.4-3.5-14.9-2.1
USD1=1.319SGDSingapore-0.1-0.7-5.8-0.1

9.2 % Change of EUR vs Currency Basket Period-Based

In the past year the Euro fell 3.9% against the New Zealand Dollar; in the past three years the Euro fell 2.4% against the New Zealand Dollar.

LastCountry1-day %1-week %1-Year %3-Yrs %
EUR1=1.644NZDNew Zealand-1.0-2.1-3.9-2.4
EUR1=1.102CHFSwitzerland0.82.04.0-4.3
EUR1=1.604SGDSingapore-0.25.8-1.1
EUR1=1.534AUDAustralia-0.3-1.4-6.4-2.3
EUR1=10.264NOKNorway-0.90.21.36.4
EUR1=128.626JPYJapan0.60.96.9-2.0
EUR1=7.836CNYChina-0.20.83.00.6
EUR1=24.904MXNMexico-0.82.020.29.1
EUR1=1.213USDUnited States Of America-0.10.812.2-1.3
EUR1=1.526CADCanada-0.5-0.46.1-2.0
EUR1=1,347.526KRWSouth Korea-0.41.12.01.8
EUR1=9.409HKDHong Kong-0.811.6-2.2
EUR1=1.0EUREuropean Union0.0---
EUR1=10.094SEKSweden-0.5-4.60.5
EUR1=0.86GBPUnited Kingdom-0.4-1.12.5-2.4

SECTION 10 HISTORICAL PERSPECTIVE

Year-on-Year Comparison USD/EUR (Trailing year - ended 24 Feb)

In the past 5 years, the EUR has appreciated against the USD at an average compound annual growth rate of 2.1%.

202120202019201820172016
Close0.820.920.880.810.950.91
% Change-10.94.58.5-14.14.323.4
Range0.88 - 0.89

USD1 buys EUR 0.82 today: Appreciation of EUR from 0.84 v/s USD fifteen years ago

Last5 Yrs ago10 Yrs ago15 Yrs ago
USD/EUR0.820.910.770.84

Present Value of EUR1000 Invested in USD 10 years ago is EUR1,073

PVEUR1,0005 yrs ago10 yrs ago
USD/EUREUR905EUR1,073

SECTION 11 MACROECONOMIC INDICATORS

INDICATORUNITED STATES[USD]EURO[EUR]
GDP (Billion USD)21,43313,336
GDP growth yoy (%)-2.5-5.1
Interest rate (%)0.250.05
Inflation rate (%)1.40.9
Unemployment rate (%)6.38.3
Budget / (Deficit) to GDP ratio (%)(4.6)(0.6)
Current account / (Deficit) to GDP ratio (%)-2.32.3
Debt to GDP ratio (%)107.677.6

SECTION 12 CREDIT RATING SUMMARY

United States:

Rating AgencyLong TermForeign CurrencyDescription
MOODYAaa
S&PAA+Very strong capacity to meet financial commitments. The plus (+) sign shows relative standing within the major rating category.
FITCHAAA Highest credit quality: 'AAA' ratings denote the lowest expectation of default risk. This capacity is highly unlikely to be adversely affected by foreseeable events.
DAGONGA-High Credit Quality: "A" ratings denote expectations of relatively low default risk. The capacity for payment of financial commitments is considered sufficient. However, this capacity may be more vulnerable than those of the higher ratings to adverse business or economic conditions due to any foreseeable event. The minus (-) sign shows relative standing within the major rating category.

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com