Fact based stock research
Banco Santander-Chile (SNSE:BSANTANDER)

CLP1506A1070

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Banco Santander-Chile stock research in summary

santander.cl

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Banco Santander-Chile (Diversified Banks, Chile) shares have much better financial characteristics than comparable stocks. Shares of Banco Santander-Chile are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 84, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Banco Santander-Chile's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Banco Santander-Chile exhibits low value (Obermatt Value Rank of 21), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 84) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	21
Growth Rank	75
Safety Rank	84
Combined Rank	82

Country	Chile
Industry	Diversified Banks
Index	IPSA, Independent Boards Growth Markets
Size class	XX-Large

This stock has achievements: Top 10 Stock.

21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Banco Santander-Chile

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	23	35	19	21
GROWTH
GROWTH	80	27	89	75
SAFETY
SAFETY	28	79	19	84
SENTIMENT
SENTIMENT	n/a	15	1	^new
360° VIEW
360° VIEW	n/a	15	3	^new

Most recent update of the stock research: 21-Mar-2024. Financial reporting date used for calculating ranks: 30-Sep-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Banco Santander-Chile is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	23	35	19	21
GROWTH
GROWTH	80	27	89	75
SAFETY
SAFETY	28	79	19	84
COMBINED
COMBINED	30	39	19	82

Last update of combined financial performance: 21-Mar-2024. Stock analysis on combined financial performance: The higher the rank of Banco Santander-Chile the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), Banco Santander-Chile shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Banco Santander-Chile. Price-to-Sales is 18 which means that the stock price compared with what market professionals expect for future profits is higher than 82% of comparable companies, indicating a low value concerning Banco Santander-Chile's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 21, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Banco Santander-Chile. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 23 and Dividend Yield, which is lower than 59% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on Banco Santander-Chile's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Banco Santander-Chile? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Banco Santander-Chile? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Banco Santander-Chile may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17	25	22	18
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31	29	23	23
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	19	19	21
DIVIDEND YIELD
DIVIDEND YIELD	66	90	43	41
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	23	35	19	21

Last update of Value Rank: 21-Mar-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Banco Santander-Chile; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Banco Santander-Chile shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Banco Santander-Chile. Sales Growth has a rank of 67 which means that currently, professionals expect the company to grow more than 67% of its competitors. Both Profit Growth, with a rank of 98, and Stock Returns, with a rank of 81, are also above average. But Capital Growth only has a rank of 10, which means that, currently, professionals expect the company to grow its invested capital less than 90% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	69	4	96	67
PROFIT GROWTH
PROFIT GROWTH	n/a	55	1	98
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	91	10
STOCK RETURNS
STOCK RETURNS	32	31	87	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	80	27	89	75

Last update of Growth Rank: 21-Mar-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Banco Santander-Chile.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 84 (better than 84% compared with alternatives) for 2024, the company Banco Santander-Chile has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Banco Santander-Chile is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Banco Santander-Chile. Refinancing is at 100, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. Liquidity is also good at 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 7, which means the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 84 (better than 84% compared with alternatives), Banco Santander-Chile has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Banco Santander-Chile could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Banco Santander-Chile and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	20	6	6	7
REFINANCING
REFINANCING	84	88	100	100
LIQUIDITY
LIQUIDITY	11	91	7	84
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	28	79	19	84

Last update of Safety Rank: 21-Mar-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Banco Santander-Chile and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	51	22	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	34	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	28	11	^new
MARKET PULSE
MARKET PULSE	n/a	18	4	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	1	^new

Last update of Sentiment Rank: 21-Mar-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Banco Santander-Chile.
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