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Banco de Sabadell
(BME:SAB)
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Rating:66Neutral
Price Target:
€3.00
▼(-10.71% Downside)
Action:Downgraded
Date:02/23/26
The score is driven mainly by improving profitability and strong recent cash generation, tempered by elevated/variable leverage and a sharp 2025 revenue decline. Valuation is a clear positive (low P/E and high dividend yield), while technical signals are neutral with slightly negative MACD.
Positive Factors
Improved profitability
Net income rising to €1.77B with sustained net profit margins (~20–32% in 2022–2025) indicates the bank has restored core profitability. That stronger earnings base improves internal capital generation, resilience to cyclical shocks, and supports ongoing lending and shareholder returns.
Negative Factors
Sharp revenue decline
An 18.9% year-over-year revenue drop in 2025 after prior growth highlights top-line vulnerability. Sustained revenue weakness would pressure margins and the durability of recent profits, forcing reliance on cost cuts, one-offs, or margin expansion to sustain earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Net income rising to €1.77B with sustained net profit margins (~20–32% in 2022–2025) indicates the bank has restored core profitability. That stronger earnings base improves internal capital generation, resilience to cyclical shocks, and supports ongoing lending and shareholder returns.
Read all positive factors
Banco de Sabadell (SAB) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€15.54B
Dividend Yield7.43%
Average Volume (3M)16.12M
Price to Earnings (P/E)6.7
Beta (1Y)1.22
Revenue Growth-27.66%
EPS Growth-52.23%
CountryES
Employees18,936
SectorGeneral
Sector StrengthN/A
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.47
Shares Outstanding4,888,211,400
10 Day Avg. Volume18,836,257
30 Day Avg. Volume16,119,384
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.33
Price to Sales (P/S)2.40
P/FCF Ratio13.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€3.05Price Target Upside-9.23% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.28
Revenue Forecast (FY)€5.22B
Banco de Sabadell Business Overview & Revenue Model
Company Description
Established in Alicante, Spain, in 1881, Banco de Sabadell, S.A. offers a comprehensive suite of banking and financial services to a diverse clientele, including individuals, businesses, and private customers, both within Spain and globally. Its r...
How the Company Makes Money
Banco de Sabadell primarily earns revenue by operating as a deposit-taking bank and lending those funds to customers. Key revenue streams typically include: (1) Net interest income: income generated from interest on loans (e.g., mortgages, consume...
Banco de Sabadell Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.94B | 7.77B | 8.66B | 4.99B | 4.34B | 4.06B |
| Gross Profit | 7.56B | 4.64B | 5.14B | 5.55B | 4.34B | 5.39B |
| EBITDA | 2.78B | 2.32B | 3.01B | 2.29B | 1.82B | 1.05B |
| Net Income | 1.63B | 1.77B | 1.83B | 1.33B | 889.39M | 530.24M |
Balance Sheet | ||||||
| Total Assets | 248.89B | 245.39B | 239.60B | 235.17B | 251.38B | 251.95B |
| Cash, Cash Equivalents and Short-Term Investments | 9.54B | 33.33B | 31.92B | 37.14B | 46.12B | 50.38B |
| Total Debt | 46.99B | 43.47B | 45.14B | 50.85B | 63.53B | 22.84B |
| Total Liabilities | 234.88B | 231.31B | 224.57B | 221.29B | 238.16B | 238.95B |
| Stockholders Equity | 13.98B | 14.05B | 15.00B | 13.84B | 13.05B | 12.97B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.38B | 5.82B | -11.06B | -7.06B | 11.84B |
| Operating Cash Flow | 1.68B | 1.68B | 6.02B | -10.52B | -6.63B | 12.34B |
| Investing Cash Flow | -238.15M | -238.15M | -17.33B | -163.02M | -64.80M | 419.59M |
| Financing Cash Flow | -2.42B | -2.42B | -382.29M | -617.00M | -1.24B | 1.10B |
Banco de Sabadell Technical Analysis
Positive
3.36
Price Trends
3.01
Positive
2.90
Positive
2.87
Positive
Market Momentum
0.06
Positive
57.80
Neutral
65.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAB, the sentiment is Positive. The current price of 3.36 is above the 20-day moving average (MA) of 3.15, above the 50-day MA of 3.01, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SAB.
Banco de Sabadell Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €125.64B | 12.01 | 18.94% | 3.39% | -16.71% | 4.95% | |
71 Outperform | €175.85B | 10.98 | 15.73% | 1.82% | -21.02% | 26.47% | |
70 Outperform | €87.08B | 14.35 | 15.83% | 4.05% | -10.19% | -2.06% | |
66 Neutral | €15.54B | 6.75 | 11.54% | 7.43% | -27.66% | -52.23% | |
64 Neutral | €13.92B | 12.70 | 17.37% | 3.64% | -9.30% | 8.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ES:SAB
Banco de Sabadell
3.20
0.73
29.85%
ES:ALNT
Alantra
10.25
2.55
33.08%
ES:SAN
Banco Santander
11.97
4.94
70.29%
ES:BKT
Bankinter
15.49
4.60
42.21%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
22.21
10.03
82.27%
ES:CABK
CAIXABANK
12.34
5.23
73.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.