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Opinions Paul Harris, CFA
Banco Santander SASANBUYJun 16, 2016
Paul Harris, CFAStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Chris StuchberryChris Stuchberry
Rick StuchberryInterest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)
Chris StuchberryHe doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.
He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.
Rick Stuchberry
A Spanish bank, and like most banks it trades at a very low multiple, about 8X next year’s earnings, and about .5X BV. About 75% retail, 20% wholesale and 5% asset management. 20% of their business is Latin America, and about half of that is Brazil. The rest of it is North America, UK, Europe and Spain. Over the long-term, Brazil and Latin America will be high growth areas. This is one of the banks you want to own because of its franchise value in the high growth areas.