Intrinsic value of Santander Consumer USA Holdings - SC

Previous Close

$17.99

  Intrinsic Value

$12.39

stock screener

  Rating & Target

sell

-31%

Previous close

$17.99

 
Intrinsic value

$12.39

 
Up/down potential

-31%

 
Rating

sell

Our model is not good at valuating stocks of financial companies, such as SC.

We calculate the intrinsic value of SC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 6.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.68
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  5,628
  5,741
  5,873
  6,024
  6,193
  6,381
  6,587
  6,811
  7,054
  7,315
  7,596
  7,897
  8,217
  8,558
  8,921
  9,306
  9,714
  10,145
  10,602
  11,084
  11,593
  12,131
  12,697
  13,295
  13,924
  14,587
  15,285
  16,020
  16,793
  17,606
  18,461
Variable operating expenses, $m
 
  964
  986
  1,011
  1,040
  1,071
  1,105
  1,143
  1,183
  1,227
  1,274
  1,316
  1,370
  1,427
  1,487
  1,551
  1,619
  1,691
  1,767
  1,848
  1,932
  2,022
  2,116
  2,216
  2,321
  2,431
  2,548
  2,670
  2,799
  2,935
  3,077
Fixed operating expenses, $m
 
  3,701
  3,794
  3,889
  3,986
  4,086
  4,188
  4,292
  4,400
  4,510
  4,622
  4,738
  4,856
  4,978
  5,102
  5,230
  5,361
  5,495
  5,632
  5,773
  5,917
  6,065
  6,217
  6,372
  6,531
  6,695
  6,862
  7,034
  7,209
  7,390
  7,574
Total operating expenses, $m
  4,467
  4,665
  4,780
  4,900
  5,026
  5,157
  5,293
  5,435
  5,583
  5,737
  5,896
  6,054
  6,226
  6,405
  6,589
  6,781
  6,980
  7,186
  7,399
  7,621
  7,849
  8,087
  8,333
  8,588
  8,852
  9,126
  9,410
  9,704
  10,008
  10,325
  10,651
Operating income, $m
  1,161
  1,075
  1,093
  1,123
  1,167
  1,224
  1,294
  1,376
  1,471
  1,579
  1,700
  1,842
  1,991
  2,154
  2,332
  2,525
  2,734
  2,960
  3,203
  3,464
  3,744
  4,044
  4,364
  4,707
  5,072
  5,461
  5,875
  6,316
  6,784
  7,282
  7,810
EBITDA, $m
  2,256
  2,194
  2,237
  2,297
  2,374
  2,467
  2,576
  2,702
  2,844
  3,002
  3,178
  3,371
  3,582
  3,811
  4,059
  4,326
  4,614
  4,923
  5,255
  5,609
  5,988
  6,392
  6,822
  7,280
  7,767
  8,285
  8,834
  9,417
  10,035
  10,690
  11,383
Interest expense (income), $m
  797
  1,096
  1,117
  1,145
  1,176
  1,211
  1,250
  1,292
  1,338
  1,389
  1,443
  1,501
  1,563
  1,629
  1,700
  1,774
  1,854
  1,938
  2,028
  2,122
  2,222
  2,327
  2,438
  2,555
  2,678
  2,809
  2,946
  3,090
  3,242
  3,401
  3,569
Earnings before tax, $m
  1,161
  -21
  -25
  -21
  -8
  14
  44
  84
  133
  190
  258
  342
  428
  525
  632
  750
  880
  1,021
  1,175
  1,342
  1,522
  1,717
  1,927
  2,152
  2,394
  2,653
  2,930
  3,226
  3,543
  3,880
  4,240
Tax expense, $m
  395
  0
  0
  0
  0
  4
  12
  23
  36
  51
  70
  92
  116
  142
  171
  203
  238
  276
  317
  362
  411
  464
  520
  581
  646
  716
  791
  871
  957
  1,048
  1,145
Net income, $m
  766
  -21
  -25
  -21
  -8
  10
  32
  61
  97
  139
  188
  249
  313
  383
  461
  548
  642
  746
  858
  980
  1,111
  1,253
  1,406
  1,571
  1,747
  1,936
  2,139
  2,355
  2,586
  2,833
  3,096

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  160
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  38,539
  39,051
  39,950
  40,976
  42,129
  43,406
  44,808
  46,334
  47,985
  49,765
  51,675
  53,718
  55,898
  58,220
  60,687
  63,304
  66,079
  69,015
  72,121
  75,402
  78,866
  82,522
  86,377
  90,441
  94,723
  99,232
  103,980
  108,977
  114,236
  119,769
  125,588
Adjusted assets (=assets-cash), $m
  38,379
  39,051
  39,950
  40,976
  42,129
  43,406
  44,808
  46,334
  47,985
  49,765
  51,675
  53,718
  55,898
  58,220
  60,687
  63,304
  66,079
  69,015
  72,121
  75,402
  78,866
  82,522
  86,377
  90,441
  94,723
  99,232
  103,980
  108,977
  114,236
  119,769
  125,588
Revenue / Adjusted assets
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
  0.147
Average production assets, $m
  7,627
  7,778
  7,957
  8,162
  8,391
  8,646
  8,925
  9,229
  9,558
  9,912
  10,293
  10,700
  11,134
  11,596
  12,088
  12,609
  13,162
  13,747
  14,365
  15,019
  15,709
  16,437
  17,205
  18,015
  18,867
  19,766
  20,711
  21,707
  22,754
  23,856
  25,015
Working capital, $m
  0
  -161
  -164
  -169
  -173
  -179
  -184
  -191
  -198
  -205
  -213
  -221
  -230
  -240
  -250
  -261
  -272
  -284
  -297
  -310
  -325
  -340
  -356
  -372
  -390
  -408
  -428
  -449
  -470
  -493
  -517
Total debt, $m
  31,324
  31,921
  32,700
  33,591
  34,592
  35,701
  36,917
  38,242
  39,675
  41,220
  42,878
  44,651
  46,544
  48,559
  50,700
  52,972
  55,380
  57,929
  60,625
  63,473
  66,480
  69,653
  73,000
  76,527
  80,243
  84,157
  88,279
  92,616
  97,181
  101,983
  107,034
Total liabilities, $m
  33,300
  33,897
  34,676
  35,567
  36,568
  37,677
  38,893
  40,218
  41,651
  43,196
  44,854
  46,627
  48,520
  50,535
  52,676
  54,948
  57,356
  59,905
  62,601
  65,449
  68,456
  71,629
  74,976
  78,503
  82,219
  86,133
  90,255
  94,592
  99,157
  103,959
  109,010
Total equity, $m
  5,239
  5,155
  5,273
  5,409
  5,561
  5,730
  5,915
  6,116
  6,334
  6,569
  6,821
  7,091
  7,379
  7,685
  8,011
  8,356
  8,722
  9,110
  9,520
  9,953
  10,410
  10,893
  11,402
  11,938
  12,503
  13,099
  13,725
  14,385
  15,079
  15,809
  16,578
Total liabilities and equity, $m
  38,539
  39,052
  39,949
  40,976
  42,129
  43,407
  44,808
  46,334
  47,985
  49,765
  51,675
  53,718
  55,899
  58,220
  60,687
  63,304
  66,078
  69,015
  72,121
  75,402
  78,866
  82,522
  86,378
  90,441
  94,722
  99,232
  103,980
  108,977
  114,236
  119,768
  125,588
Debt-to-equity ratio
  5.979
  6.190
  6.200
  6.210
  6.220
  6.230
  6.240
  6.250
  6.260
  6.270
  6.290
  6.300
  6.310
  6.320
  6.330
  6.340
  6.350
  6.360
  6.370
  6.380
  6.390
  6.390
  6.400
  6.410
  6.420
  6.420
  6.430
  6.440
  6.440
  6.450
  6.460
Adjusted equity ratio
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  766
  -21
  -25
  -21
  -8
  10
  32
  61
  97
  139
  188
  249
  313
  383
  461
  548
  642
  746
  858
  980
  1,111
  1,253
  1,406
  1,571
  1,747
  1,936
  2,139
  2,355
  2,586
  2,833
  3,096
Depreciation, amort., depletion, $m
  1,095
  1,119
  1,144
  1,173
  1,206
  1,243
  1,282
  1,326
  1,373
  1,423
  1,478
  1,529
  1,591
  1,657
  1,727
  1,801
  1,880
  1,964
  2,052
  2,146
  2,244
  2,348
  2,458
  2,574
  2,695
  2,824
  2,959
  3,101
  3,251
  3,408
  3,574
Funds from operations, $m
  4,252
  1,097
  1,119
  1,152
  1,198
  1,252
  1,315
  1,387
  1,470
  1,562
  1,666
  1,778
  1,903
  2,040
  2,188
  2,349
  2,523
  2,709
  2,910
  3,125
  3,355
  3,602
  3,864
  4,144
  4,443
  4,760
  5,098
  5,456
  5,837
  6,241
  6,669
Change in working capital, $m
  -221
  -3
  -4
  -4
  -5
  -5
  -6
  -6
  -7
  -7
  -8
  -8
  -9
  -10
  -10
  -11
  -11
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
Cash from operations, $m
  4,473
  1,100
  1,123
  1,157
  1,203
  1,258
  1,320
  1,393
  1,476
  1,570
  1,674
  1,786
  1,912
  2,049
  2,198
  2,360
  2,534
  2,721
  2,923
  3,139
  3,370
  3,617
  3,880
  4,161
  4,460
  4,779
  5,117
  5,477
  5,858
  6,263
  6,693
Maintenance CAPEX, $m
  0
  -1,090
  -1,111
  -1,137
  -1,166
  -1,199
  -1,235
  -1,275
  -1,318
  -1,365
  -1,416
  -1,470
  -1,529
  -1,591
  -1,657
  -1,727
  -1,801
  -1,880
  -1,964
  -2,052
  -2,146
  -2,244
  -2,348
  -2,458
  -2,574
  -2,695
  -2,824
  -2,959
  -3,101
  -3,251
  -3,408
New CAPEX, $m
  -5,620
  -152
  -179
  -205
  -230
  -254
  -279
  -304
  -329
  -354
  -380
  -407
  -434
  -462
  -491
  -521
  -553
  -585
  -619
  -654
  -690
  -728
  -768
  -809
  -853
  -898
  -946
  -995
  -1,047
  -1,102
  -1,159
Cash from investing activities, $m
  -5,268
  -1,242
  -1,290
  -1,342
  -1,396
  -1,453
  -1,514
  -1,579
  -1,647
  -1,719
  -1,796
  -1,877
  -1,963
  -2,053
  -2,148
  -2,248
  -2,354
  -2,465
  -2,583
  -2,706
  -2,836
  -2,972
  -3,116
  -3,267
  -3,427
  -3,593
  -3,770
  -3,954
  -4,148
  -4,353
  -4,567
Free cash flow, $m
  -795
  -141
  -167
  -185
  -193
  -196
  -194
  -186
  -171
  -150
  -123
  -91
  -51
  -4
  50
  112
  180
  256
  340
  433
  534
  644
  764
  894
  1,034
  1,185
  1,348
  1,522
  1,710
  1,911
  2,126
Issuance/(repayment) of debt, $m
  928
  597
  780
  891
  1,001
  1,109
  1,216
  1,325
  1,434
  1,545
  1,658
  1,774
  1,892
  2,015
  2,141
  2,272
  2,408
  2,549
  2,696
  2,848
  3,007
  3,173
  3,346
  3,527
  3,716
  3,914
  4,121
  4,338
  4,565
  4,802
  5,051
Issuance/(repurchase) of shares, $m
  8
  97
  143
  157
  160
  159
  153
  140
  121
  96
  64
  20
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  936
  694
  923
  1,048
  1,161
  1,268
  1,369
  1,465
  1,555
  1,641
  1,722
  1,794
  1,892
  2,015
  2,141
  2,272
  2,408
  2,549
  2,696
  2,848
  3,007
  3,173
  3,346
  3,527
  3,716
  3,914
  4,121
  4,338
  4,565
  4,802
  5,051
Total cash flow (excl. dividends), $m
  141
  553
  756
  863
  968
  1,072
  1,175
  1,279
  1,384
  1,490
  1,599
  1,703
  1,842
  2,011
  2,192
  2,384
  2,588
  2,805
  3,036
  3,281
  3,541
  3,817
  4,110
  4,421
  4,750
  5,099
  5,469
  5,860
  6,275
  6,713
  7,177
Retained Cash Flow (-), $m
  -806
  -97
  -143
  -157
  -160
  -169
  -185
  -201
  -218
  -235
  -252
  -270
  -288
  -306
  -326
  -346
  -366
  -388
  -410
  -433
  -457
  -483
  -509
  -536
  -565
  -595
  -627
  -660
  -694
  -730
  -768
Prev. year cash balance distribution, $m
 
  160
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  616
  613
  706
  808
  903
  990
  1,078
  1,166
  1,256
  1,347
  1,433
  1,554
  1,705
  1,866
  2,038
  2,222
  2,418
  2,626
  2,848
  3,084
  3,335
  3,601
  3,885
  4,185
  4,504
  4,842
  5,201
  5,580
  5,983
  6,409
Discount rate, %
 
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.10
  33.71
  35.40
  37.17
  39.02
  40.97
  43.02
  45.17
  47.43
  49.81
PV of cash for distribution, $m
 
  549
  482
  485
  478
  455
  418
  376
  331
  286
  241
  198
  163
  132
  105
  81
  61
  45
  32
  22
  15
  10
  6
  4
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  98.5
  96.3
  94.0
  91.8
  89.8
  87.9
  86.2
  84.8
  83.8
  83.2
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0
  83.0

Santander Consumer USA Holdings Inc. is the holding company for Santander Consumer USA Inc., and subsidiaries, a consumer finance company focused on vehicle finance and third party servicing. The Company operates through Consumer Finance segment. Its Consumer Finance business is focused on vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles (RVs), and marine vehicles. It also includes its personal loan and point-of-sale financing operations. The Company's primary business is the indirect origination and securitization of retail installment contracts, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. The Company offers auto financing products and services to Fiat Chrysler Automobiles US LLC (FCA) customers and dealers under the Chrysler Capital brand.

FINANCIAL RATIOS  of  Santander Consumer USA Holdings (SC)

Valuation Ratios
P/E Ratio 8.4
Price to Sales 1.1
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 1.4
Price to Free Cash Flow -5.6
Growth Rates
Sales Growth Rate -2.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 8.7%
Cap. Spend. - 3 Yr. Gr. Rate 18.1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 597.9%
Total Debt to Equity 597.9%
Interest Coverage 2
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. 3.6%
Return On Total Capital 2.1%
Ret/ On T. Cap. - 3 Yr. Avg. 2.4%
Return On Equity 15.8%
Return On Equity - 3 Yr. Avg. 19.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 85.6%
Gross Margin - 3 Yr. Avg. 88.3%
EBITDA Margin 54.2%
EBITDA Margin - 3 Yr. Avg. 48%
Operating Margin 20.6%
Oper. Margin - 3 Yr. Avg. 21.4%
Pre-Tax Margin 20.6%
Pre-Tax Margin - 3 Yr. Avg. 21.4%
Net Profit Margin 13.6%
Net Profit Margin - 3 Yr. Avg. 13.9%
Effective Tax Rate 34%
Eff/ Tax Rate - 3 Yr. Avg. 35.2%
Payout Ratio 0%

SC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SC stock intrinsic value calculation we used $5628 million for the last fiscal year's total revenue generated by Santander Consumer USA Holdings. The default revenue input number comes from 2016 income statement of Santander Consumer USA Holdings. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SC stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 12.1%, whose default value for SC is calculated based on our internal credit rating of Santander Consumer USA Holdings, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Santander Consumer USA Holdings.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SC stock the variable cost ratio is equal to 16.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3611 million in the base year in the intrinsic value calculation for SC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Santander Consumer USA Holdings.

Corporate tax rate of 27% is the nominal tax rate for Santander Consumer USA Holdings. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SC are equal to 135.5%.

Life of production assets of 7 years is the average useful life of capital assets used in Santander Consumer USA Holdings operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SC is equal to -2.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5239 million for Santander Consumer USA Holdings - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 359.324 million for Santander Consumer USA Holdings is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Santander Consumer USA Holdings at the current share price and the inputted number of shares is $6.5 billion.

RELATED COMPANIES Price Int.Val. Rating
CPSS Consumer Portf 4.32 12.45  str.buy
CACC Credit Accepta 326.00 398.54  buy
NICK Nicholas Finan 8.54 6.82  sell
ATLC Atlanticus Hol 2.40 7.69  str.buy

COMPANY NEWS

▶ Santander Consumer beats 3Q profit forecasts   [06:29AM  Associated Press]
▶ Looking for Value in a Bull Market   [Oct-20-17 02:23PM  Zacks]
▶ [$$] Santander replaces chief of US subprime auto lender unit   [Aug-28-17 12:36PM  Financial Times]
▶ New Strong Sell Stocks for August 17th   [Aug-17-17 09:25AM  Zacks]
▶ Roundtable: 1 Dark Horse Stock I'm Watching   [Aug-01-17 05:21PM  Motley Fool]
▶ Santander Consumer beats 2Q profit forecasts   [Jul-28-17 10:43PM  Associated Press]
▶ Slowdown in loan offers for poor credit leasers   [Jun-07-17 02:34PM  CNBC Videos]
▶ [$$] Debt pile up in US car market sparks subprime fear   [May-30-17 12:00AM  Financial Times]
▶ Trouble Brews in Subprime Auto Loan Market   [May-22-17 04:12PM  Bloomberg]
▶ Santander Consumer beats 1Q profit forecasts   [06:26AM  Associated Press]
▶ Analyst: Last year marked the top of the auto sector   [Apr-03-17 01:08PM  CNBC Videos]
▶ Santander to pay $26M to settle sub-prime auto loan case   [Mar-30-17 09:30AM  at bizjournals.com]
▶ Santander to pay $26M to settle sub-prime auto loan case   [09:30AM  American City Business Journals]
Financial statements of SC
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.