Banco de Sabadell (SAB) AI Stock Analysis

• Market Cap: €16.03B
• Dividend Yield: 7.43%
• Average Volume (3M): 16.12M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.25
• Revenue Growth: -6.77%
• EPS Growth: -39.63%
• Country: ES
• Employees: 18,936
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.34
• Shares Outstanding: 5,023,677,700
• 10 Day Avg. Volume: 18,836,257
• 30 Day Avg. Volume: 16,119,384
• PEG Ratio: 0.14
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 1.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.45
• Price Target Upside: 3.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €4.00 ▲(20.12% Upside)

The score is led by improving financial performance (stronger profitability and a rebound in cash generation) and supportive technical momentum with price above key moving averages. The main constraint is higher leverage and historical volatility in cash flows, while valuation is helped by a high dividend yield but tempered by a mid-range P/E.

Banco de Sabadell Business Overview & Revenue Model

Company Description

Banco de Sabadell, S.A. is a Spain-based banking group that provides retail and commercial banking services to individuals, small and medium-sized enterprises, and corporate clients. The group offers products and services such as deposits and current accounts, consumer and business lending (including mortgages), payments and cards, cash management, trade finance, and other banking-related services through its branch network and digital channels.

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, consumer credit, and business loans) and other interest-earning assets, minus interest paid on customer deposits and wholesale funding; this spread is usually the largest driver of bank earnings. (2) Fee and commission income: fees charged for services such as account maintenance, card and payments processing, cash management services for businesses, international payments, trade finance services (e.g., guarantees/letters of credit-related services), and other transaction and service-based commissions. (3) Results from financial operations and investment activities: gains or losses from trading or valuation changes in certain financial instruments, and income related to managing the bank’s securities portfolios, where applicable. (4) Other operating income: may include income from ancillary banking services and other non-interest sources; specific items vary by period and disclosure. Profitability is influenced by factors such as loan volumes and pricing, deposit and funding costs, credit quality (loan loss provisions), operating efficiency, and macroeconomic conditions (e.g., interest-rate environment and borrower performance). Specific significant partnerships or counterparties are not available in this response and are therefore null.

Banco de Sabadell Financial Statement Overview

Summary

Income statement strength (score 78) shows improved profitability and margin expansion, and cash flow improved (score 67) with positive operating and free cash flow in 2024. Offsetting this, the balance sheet score (60) reflects meaningfully higher leverage (debt-to-equity ~3.0x) and historical variability in results/cash flows, increasing risk sensitivity.

Income Statement

Profitability and momentum improved meaningfully: revenue rose in 2024 (+3.0% YoY) after a decline in 2023, while net profit margin expanded to ~32% (from ~27% in 2023 and ~17% in 2022). Net income has grown strongly over the last several years, signaling better earnings power. Offsetting this, results have been more volatile historically (near-breakeven in 2020) and 2023 shows an unusual negative operating margin reading versus positive net margin, suggesting some inconsistency in the underlying line items.

Balance Sheet

The balance sheet shows improved shareholder returns, with return on equity rising to ~12.2% in 2024 (up from ~9.6% in 2023 and ~6.7% in 2022). However, leverage increased notably: total debt climbed to ~45.1B in 2024 from ~25.8B in 2023, pushing debt-to-equity up to ~3.0x (vs ~1.9x in 2023). Total assets were broadly stable over time, but the higher leverage profile raises risk sensitivity.

Cash Flow

Cash generation rebounded sharply in 2024, with operating cash flow at ~6.0B and free cash flow at ~5.8B after large outflows in 2022–2023. Free cash flow is close to net income in 2024 (~0.97x), indicating earnings are reasonably supported by cash in the latest year. The main weakness is variability: operating and free cash flow swung significantly year to year, and the provided operating cash flow coverage figure in 2024 is very low despite positive cash flow, pointing to potential data/denominator effects or reduced coverage versus obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02B	5.71B	4.99B	4.34B	4.06B	3.66B
Gross Profit	9.61B	5.71B	6.25B	5.47B	5.39B	3.66B
EBITDA	3.23B	3.01B	0.00	1.82B	1.15B	267.27M
Net Income	1.72B	1.83B	1.33B	889.39M	530.24M	2.00M
Balance Sheet
Total Assets	252.37B	239.60B	235.17B	251.38B	251.95B	235.76B
Cash, Cash Equivalents and Short-Term Investments	27.20B	31.92B	36.72B	46.12B	50.38B	36.81B
Total Debt	57.49B	45.14B	25.79B	63.53B	69.57B	63.59B
Total Liabilities	237.88B	224.57B	221.29B	238.16B	238.95B	223.27B
Stockholders Equity	14.46B	15.00B	13.84B	13.05B	12.97B	12.42B
Cash Flow
Free Cash Flow	0.00	5.82B	-11.06B	-7.06B	11.84B	19.74B
Operating Cash Flow	0.00	6.02B	-10.52B	-6.63B	12.34B	20.42B
Investing Cash Flow	0.00	-17.33B	-163.02M	-64.80M	419.59M	237.64M
Financing Cash Flow	0.00	-382.29M	-617.00M	-1.24B	1.10B	-460.48M

Banco de Sabadell Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.33 is below the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.24, and above the 200-day MA of 2.97, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAB	72 Outperform	€16.03B	16.58	7.75%	7.43%	-6.77%	-39.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%