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Banco de Sabadell SA (ES:SAB)
BME:SAB
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Banco de Sabadell (SAB) AI Stock Analysis

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ES:SAB

Banco de Sabadell

(BME:SAB)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
€4.00
▲(9.89% Upside)
Action:Upgraded
Date:08/06/26
The score is driven by attractive valuation (low P/E and high dividend yield) and solid technical strength (price above key moving averages with positive momentum). These positives are tempered by a middling financial profile due to a sharp 2025 revenue decline, elevated/variable leverage, and multi-year cash-flow volatility.
Positive Factors
Improved Profitability
Sustained net income improvement to €1.77B and high margins across 2022–2025 indicate stronger core earnings power. This durable profitability boosts internal capital generation, supports dividend capacity, and provides a buffer to absorb credit losses or cyclical pressure over the medium term.
Negative Factors
Elevated & Variable Leverage
Wide swings in leverage and a relatively elevated debt-to-equity profile increase sensitivity to funding and market stress. That structural volatility limits capital flexibility, raises regulatory and refinancing risk, and can force more conservative lending or capital raises in adverse conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Sustained net income improvement to €1.77B and high margins across 2022–2025 indicate stronger core earnings power. This durable profitability boosts internal capital generation, supports dividend capacity, and provides a buffer to absorb credit losses or cyclical pressure over the medium term.
Read all positive factors

Banco de Sabadell (SAB) vs. iShares MSCI Spain ETF (EWP)

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 makes money through a banking model centered on interest income, fees and commissions, and results from financial operations. (1) Net interest income: The core earnings engine is the spread between interest earned on in...

Banco de Sabadell Financial Statement Overview

Summary
Profitability has improved materially (net income up to €1.77B in 2025 with strong margins in 2022–2025), but 2025 revenue fell sharply (-18.9% YoY). Balance-sheet leverage is elevated and variable (debt-to-equity ~1.9x to ~5.4x; ~3.7x in 2025), and cash flows have been highly volatile despite strong 2025 operating/free cash flow.
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.12B7.77B8.66B4.99B4.34B4.06B
Gross Profit5.28B4.64B5.14B5.55B4.34B5.39B
EBITDA2.43B2.32B3.01B2.29B1.82B1.05B
Net Income1.77B1.77B1.83B1.33B889.39M530.24M
Balance Sheet
Total Assets199.08B245.39B239.60B235.17B251.38B251.95B
Cash, Cash Equivalents and Short-Term Investments5.46B33.33B31.92B37.14B46.12B50.38B
Total Debt43.71B43.47B45.14B50.85B63.53B22.84B
Total Liabilities186.91B231.31B224.57B221.29B238.16B238.95B
Stockholders Equity12.14B14.05B15.00B13.84B13.05B12.97B
Cash Flow
Free Cash Flow-7.38B1.38B5.82B-11.06B-7.06B11.84B
Operating Cash Flow-7.17B1.68B6.02B-10.52B-6.63B12.34B
Investing Cash Flow-235.37M-238.15M-17.33B-163.02M-64.80M419.59M
Financing Cash Flow-1.70B-2.42B-382.29M-617.00M-1.24B1.10B

Banco de Sabadell Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€141.34B13.1619.31%3.62%-8.98%6.81%
75
Outperform
€94.18B15.3616.09%3.71%-6.84%3.21%
73
Outperform
€17.78B8.8913.05%6.24%-33.66%-32.82%
70
Outperform
€15.16B13.2817.70%3.31%-4.58%12.95%
69
Neutral
€193.07B11.5915.48%1.86%8.23%24.66%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:SAB
Banco de Sabadell
3.74
0.92
32.82%
ES:ALNT
Alantra
9.78
2.08
26.98%
ES:SAN
Banco Santander
12.89
4.76
58.64%
ES:BKT
Bankinter
16.84
4.64
38.04%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
25.38
10.24
67.67%
ES:CABK
CAIXABANK
13.46
5.16
62.09%
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.Date of analysis: Aug 06, 2026