Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BSMX • US05969B1035

5.46 USD
+0.13 (+2.44%)
At close: May 4, 2023
5.35 USD
-0.11 (-2.01%)
After Hours: 5/4/2023, 8:04:01 PM
Fundamental Rating

4

Taking everything into account, BSMX scores 4 out of 10 in our fundamental rating. BSMX was compared to 383 industry peers in the Banks industry. BSMX has a bad profitability rating. Also its financial health evaluation is rather negative. BSMX is valued quite cheap, while showing a decent growth score. This is a good combination! BSMX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • BSMX had positive earnings in the past year.
  • BSMX had a positive operating cash flow in the past year.
BSMX Yearly Net Income VS EBIT VS OCF VS FCFBSMX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20B -20B 40B -40B

1.2 Ratios

  • BSMX has a better Return On Assets (2.53%) than 99.30% of its industry peers.
  • BSMX has a Return On Equity of 28.08%. This is amongst the best in the industry. BSMX outperforms 99.77% of its industry peers.
Industry RankSector Rank
ROA 2.53%
ROE 28.08%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
BSMX Yearly ROA, ROE, ROICBSMX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15

1.3 Margins

  • The Profit Margin of BSMX (25.43%) is worse than 62.00% of its industry peers.
  • In the last couple of years the Profit Margin of BSMX has grown nicely.
  • BSMX does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 25.43%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.15%
PM growth 5Y2.57%
GM growth 3YN/A
GM growth 5YN/A
BSMX Yearly Profit, Operating, Gross MarginsBSMX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

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1

2. Health

2.1 Basic Checks

  • BSMX does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • BSMX has about the same amout of shares outstanding than it did 1 year ago.
  • BSMX has a worse debt/assets ratio than last year.
BSMX Yearly Shares OutstandingBSMX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B
BSMX Yearly Total Debt VS Total AssetsBSMX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500B 1T 1.5T

2.2 Solvency

  • BSMX has a debt to FCF ratio of 14.73. This is a negative value and a sign of low solvency as BSMX would need 14.73 years to pay back of all of its debts.
  • The Debt to FCF ratio of BSMX (14.73) is comparable to the rest of the industry.
  • BSMX has a Debt/Equity ratio of 0.80. This is a neutral value indicating BSMX is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.80, BSMX is doing worse than 73.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 14.73
Altman-Z N/A
ROIC/WACCN/A
WACC7.02%
BSMX Yearly LT Debt VS Equity VS FCFBSMX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50B -50B 100B 150B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
BSMX Yearly Current Assets VS Current LiabilitesBSMX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100B 200B 300B 400B

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6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 46.84% over the past year.
  • The Earnings Per Share has been growing by 8.34% on average over the past years. This is quite good.
  • Looking at the last year, BSMX shows a very strong growth in Revenue. The Revenue has grown by 92.10%.
  • Measured over the past years, BSMX shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
EPS 1Y (TTM)46.84%
EPS 3Y7.58%
EPS 5Y8.34%
EPS Q2Q%20.34%
Revenue 1Y (TTM)92.1%
Revenue growth 3Y3.19%
Revenue growth 5Y5.74%
Sales Q2Q%324.02%

3.2 Future

  • BSMX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.83% yearly.
  • BSMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.69% yearly.
EPS Next Y6.69%
EPS Next 2Y4.49%
EPS Next 3Y5.83%
EPS Next 5YN/A
Revenue Next Year16.62%
Revenue Next 2Y11.48%
Revenue Next 3Y11.69%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
BSMX Yearly Revenue VS EstimatesBSMX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
BSMX Yearly EPS VS EstimatesBSMX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 4.92, which indicates a rather cheap valuation of BSMX.
  • 84.85% of the companies in the same industry are more expensive than BSMX, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, BSMX is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 4.61, the valuation of BSMX can be described as very cheap.
  • BSMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BSMX is cheaper than 90.44% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. BSMX is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 4.92
Fwd PE 4.61
BSMX Price Earnings VS Forward Price EarningsBSMX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSMX indicates a rather cheap valuation: BSMX is cheaper than 87.18% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.03
EV/EBITDA N/A
BSMX Per share dataBSMX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.74
PEG (5Y)0.59
EPS Next 2Y4.49%
EPS Next 3Y5.83%

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5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.13%, BSMX is a good candidate for dividend investing.
  • BSMX's Dividend Yield is rather good when compared to the industry average which is at 2.73. BSMX pays more dividend than 81.59% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, BSMX pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.13%

5.2 History

  • On average, the dividend of BSMX grows each year by 14.94%, which is quite nice.
  • BSMX has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of BSMX decreased recently.
Dividend Growth(5Y)14.94%
Div Incr Years1
Div Non Decr Years1
BSMX Yearly Dividends per shareBSMX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 0.5 1 1.5

5.3 Sustainability

  • BSMX pays out 38.30% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of BSMX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.3%
EPS Next 2Y4.49%
EPS Next 3Y5.83%
BSMX Yearly Income VS Free CF VS DividendBSMX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 20B -20B 40B -40B
BSMX Dividend Payout.BSMX Dividend Payout, showing the Payout Ratio.BSMX Dividend Payout.PayoutRetained Earnings

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Banco Santander Mexico SA Institucion de Banca Multiple Grupo / BSMX FAQ

What is the fundamental rating for BSMX stock?

ChartMill assigns a fundamental rating of 5 / 10 to BSMX.


What is the valuation status of Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) stock?

ChartMill assigns a valuation rating of 9 / 10 to Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX). This can be considered as Undervalued.


Can you provide the profitability details for Banco Santander Mexico SA Institucion de Banca Multiple Grupo?

Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) has a profitability rating of 6 / 10.


What is the financial health of Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) stock?

The financial health rating of Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) is 1 / 10.


Can you provide the dividend sustainability for BSMX stock?

The dividend rating of Banco Santander Mexico SA Institucion de Banca Multiple Grupo (BSMX) is 8 / 10 and the dividend payout ratio is 38.3%.