For today’s bulletin, we take a look at the latest news on Santander Consumer Holdings USA $SC and provide a link to download a FREE STOCK REPORT on the company
VALUATION WATCH: Overvalued stocks now make up 57.38% of our stocks assigned a valuation and 21.97% of those equities are calculated to be overvalued by 20% or more. Thirteen sectors are calculated to be overvalued.
To subscribe to our bulletins and receive content whenever it is published, subscribe at our blog HERE
Michael Mauboussin: Here’s what active managers can do
Santander Consumer USA Holdings Inc. (SC) 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.
We opened up the week talking about Fiat-Chrysler and the auto industry. Today, we take a look at our latest top-ranked STRONG BUY upgrade, Santander Consumer USA Holdings. This company provides vehicle financing for Fiat-Chrysler buyers.
The stock has been in play recently, with a big volume spike last week. Although the stock took a dip of @1.1% that day, it traded at a volume more than twice the normal average.
In other news, the company recently won a case before the US Supreme Court by a unanimous vote of 9-0. In that case, it was determined that the company did not violate the Fair Debt Collection Practices Act. In this case, it was ruled that Santander was allowed to collect debts on car loans it had not originated, but had bought from others. That resolution will surely help the company moving forward.
Of course, there is a potential downside here. Some analysts worry that auto loans are currently in a bubble situation akin to the one that cause the financial collapse and the subsequent Bush recession of 2007-2008. While we have come roaring back from that debacle–at least from a market perspective, it is important to remember that car loans and vehicle-related debts are rife with possibilities for the same sorts of abuses by unscrupulous salesman, dealers, financiers, etc.
According to a recent Bloomberg article, fraud is a real problem within the industry and this can ” include borrowers lying about their income and their jobs, including falsifying paystubs. Loan applications can also include bogus information about the type of car being financed, or its value. The deception can be perpetrated by consumers, or car dealers, or both. . . Losses from auto loan fraud this year will likely be $4 billion to $6 billion, up from $2 billion to $3 billion in 2015?
Below is our latest data for Santander Consumer USA Holdings Inc. (SC):
ValuEngine updated its recommendation from BUY to STRONG BUY for Santander Consumer USA Holdings Inc. on 2017-06-27. Based on the information we have gathered and our resulting research, we feel that Santander Consumer USA Holdings Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Book Market Ratio.
You can download a free copy of detailed report on at Santander Consumer USA Holdings Inc.(SC) from the link below.
|Valuation & Rankings|
|Valuation||31.32% overvalued||Valuation Rank(?)||12|
|1-M Forecast Return||1.09%||1-M Forecast Return Rank||99|
|12-M Return||27.86%||Momentum Rank(?)||67|
|Sharpe Ratio||-0.64||Sharpe Ratio Rank(?)||13|
|5-Y Avg Annual Return||-24.92%||5-Y Avg Annual Rtn Rank||19|
|Expected EPS Growth||5.63%||EPS Growth Rank(?)||31|
|Market Cap (billions)||4.32||Size Rank||81|
|Trailing P/E Ratio||6.75||Trailing P/E Rank(?)||98|
|Forward P/E Ratio||6.39||Forward P/E Ratio Rank||95|
|PEG Ratio||1.20||PEG Ratio Rank||39|
ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or [email protected]
ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.
Contact ValuEngine Capital at [email protected]
Article by ValuEngine