— Santander, the second-largest U.S. consumer finance company by revenue, has been making significant revenue and earnings strides in recent months, thanks to a combination of its consumer debt and credit card programs.
Its total debt as of June 30 was $6.1 billion, up 11% from the same period last year.
In June, the company reported revenue of $4.9 billion and earnings of $2.9 per share.
The company said that its cash flow was up 24% to $4 billion, as of the end of June.
And in July, the stock was up 11%.
The company has also reported quarterly earnings of about $1.25 per share, which are above analysts’ expectations.
The good news for Santander is that the company’s consumer debt program is now a $2 billion business, meaning that it has much more debt than the average American household.
And with the debt, Santander can offer a wide range of products to its consumers, from credit cards to prepaid debit cards.
But investors don.
The stock fell nearly 12% to under $18 per share in late July, and now sits at $16.40.
It has been trading at more than 20 times earnings before interest, taxes, depreciation and amortization (EBITDA).
The company is trading at about $19 per share compared to about $7 per share a year ago.
It also has a strong cash position, with about $2 trillion in cash on hand as of March 31, according to FactSet data.
The problem is that Santander’s credit card business has seen a lot of churn.
It’s been selling more and more credit cards every month.
That churn has caused the stock to lose value over the past year, but the stock has seen little or no drop in its revenue, which is a big reason why the stock is trading so low right now.
“The company is losing cash, but not at the expense of growth,” said Brian Murphy, an analyst at Credit Suisse.
Santander said it would like to get into the credit card space and build up its credit card revenue to $5 billion, but that it hasn’t gotten that far.
The biggest threat to Santander in the credit cards space, Murphy said, is a new product from the company called its Borrows Manager.
The Borrowings Manager is a way for consumers to pay off their credit card debt in a variety of ways, such as refinancing or selling their home, he said.
But the company said its customers are still paying for a lot more than a loan.
For example, Santando’s revenue from selling credit card products has dropped from about $8 billion to $3.4 billion in the past 12 months, Murphy noted.
Santando also reported revenue from prepaid debit card sales, which rose 9% to about a billion dollars, but it also saw declines in its total credit card program revenue, or total sales, from about 3.2 billion to 2.3 billion.
The credit card company’s cash position is at about the same level as the S&P 500.
But there’s still a lot left to be won for Santande, said Paul Sifakis, an equity analyst at FactSet.
“We would be foolish not to see the company take a serious look at its credit cards,” Sifaks said.
Santander shares are up just over 5% so far this year, up from a 3.5% rise in the last year, and their price-to-earnings ratio is at its highest level since June 2013, when the stock closed at $14.40 per share (which is still well above the SES 500).
The stock is also down about 1% from its IPO price, which was $31.50 in July 2013.
But that price is still a premium of about 14%.
This isn’t the first time Santander investors have complained about the company.
Last year, when its shares fell a bit, investors complained that the stock didn’t deliver a lot in the way of cash flow.
Investors had been waiting for a turnaround in its credit product to help drive revenue and margins.
The consumer debt problem, however, is what the company has been trying to solve for months.
That’s led to an aggressive expansion of the company and a huge new product line that the bank says is expected to boost consumer spending by $6 billion over the next three years.
Santanders chief financial officer has also promised to get back to the top of his customers’ credit card debts and has been touting the new product as a way to make its credit products more attractive to them.
And the company is making some good progress.
Last month, the bank said Santander was on track to meet the debt reduction target it set in June.
The bank said that it expects Santander to have repaid $1 billion in debt by