Stock on Focus: Santander Consumer USA Holdings Inc. (SC)

Company Profile:

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its vehicle finance products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit. The company also offers financial products and services related to motorcycles, recreational vehicles, and marine vehicles; originates vehicle loans through a Web-based direct lending program; purchases vehicle retail installment contracts from other lenders; and services automobile, and recreational and marine vehicle portfolios for other lenders. In addition, it provides personal loans, private-label revolving lines, and other consumer finance products, as well as point-of-sale financing. The company was founded in 1995 and is headquartered in Dallas, Texas. Santander Consumer USA Holdings Inc. is a subsidiary of Santander Holdings USA, Inc.

Recent News:

The company reported net income for the second quarter ended June 30, 2017 of $265 million, or $0.74 per diluted common share. Net leased vehicle income of $131 million, up 5%. It also announced proposed dividends of $0.03 per share in Q4 2017 and $0.05 per share in Q1 and Q2 of 2018.

On July 10, 2017, the company announced that it has priced $800,000,000 in aggregate principal amount of 4.400% senior unsecured notes due 2027 and $440,000,000 in aggregate principal amount of 3.700% senior unsecured notes due 2022.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SC’s strengths can be seen in its better growth and strong profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI(14) stands at 67.99 with positive bias. We rate Santander Consumer USA Holdings Inc. (SC) a STRONG BUY.