Here’s why Santander Bank Polska (WSE:SPL) has caught investors’ attention

Investors are often driven by the idea of ​​discovering “the next big thing,” even if that means buying “historic stocks” without any income, let alone profit. Sometimes these stories can cloud investors’ minds, leading them to invest with their emotions rather than based on the company’s sound fundamentals. Loss-making companies can act as a sponge for capital. Investors should therefore be careful not to waste money after losing it.

So if this idea of ​​high risk and high reward doesn’t suit you, you might be more interested in profitable, growing businesses, like Bank Santander Poland (WSE:SPL). While this doesn’t necessarily mean it’s undervalued, the company’s profitability is enough to warrant some appreciation, especially if it’s growing.

View our latest analysis for Santander Bank Polska

Santander Bank Polska improves profits

Over the past three years, Santander Bank Polska’s earnings per share have taken off; so much so that it is a bit misleading to use these figures to try to derive long-term estimates. As a result, we will instead focus on last year’s growth. Impressively, Santander Bank Polska’s EPS grew from zł29.66 to zł50.92 over the last year. Annual growth of 72% is certainly a sight to behold. Shareholders hope this is a sign the company is reaching an inflection point.

It’s often useful to look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another view of the quality of the company’s growth. Not all Santander Bank Polska income this year is income operations, so keep in mind that the revenue and margin numbers used in this article may not be the best representation of the underlying business. Santander Bank Polska maintained stable EBIT margins over the last year, while increasing revenue by 27% to 15 billion zł. This is encouraging news for the company!

You can take a look at the company’s revenue and earnings growth trend in the chart below. For more details, click on the image.

Even though we live in the present moment, there is no doubt that the future matters most in the investment decision process. So why not check out this interactive chart showing future EPS estimates for Santander Bank Polska?

Are Santander Bank Polska insiders aligned with all shareholders?

It is a good habit to check a company’s compensation policies to ensure that the CEO and management team are not putting their own interests ahead of those of the shareholder with excessive salaries. For companies with market capitalizations above 32 billion zł, such as Santander Bank Polska, the median CEO salary is around 18 million zł.

The CEO of Santander Bank Polska took home a total remuneration of 6.2 million zł in the year to December 2023. First impressions seem to indicate a shareholder-friendly remuneration policy. CEO pay levels are not the most important metric for investors, but when compensation is modest, it promotes better alignment between the CEO and common shareholders. It can also be a sign of a culture of integrity, in a broader sense.

Is Santander Bank Polska worth watching?

Santander Bank Polska’s earnings per share have soared, with extremely high growth rates. With growing profits, it seems likely that the company has a rosy future; and it may have reached an inflection point. Additionally, the fact that the CEO’s compensation is entirely reasonable is a sign that the company is aware of excessive spending. This will certainly require further research to be sure, but it appears that Santander Bank Polska has the characteristics of a quality company; and it would be worth watching. We should say that we discovered 2 warning signs for Santander Bank Polska which you should be aware of before investing here.

While opting for stocks without earnings growth and insider buying can yield results, for investors who value these key metrics, here is a carefully selected list of PL companies with promising growth potential and preferred trust .

Please note that the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Any feedback on this article? Worried about the content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Any feedback on this article? Worried about the content? Contact us directly. You can also email [email protected]