olivLaw · European equity research
Banco de Sabadell, S.A. SAB.MC
Spain · BME Madrid · ISIN ES0113860A34 · Vertical: Listed companies from Spain
Banco de Sabadell is a commercial bank with a strong focus on the Spanish market, financing households and companies. In 2025 the bank reported gross loans of 160,708 million euros, and its 2025-2027 Strategic Plan emphasises profitable growth and differentiated shareholder remuneration while the sale of TSB was pending.
At the close of 05 Nov 2026, Banco de Sabadell, S.A. (SAB.MC) stock was 3.60 EUR (+0.53% on the day), with market capitalisation 20.0 bn EUR, P/E 11.3 on diluted EPS of 0.32 EUR over the last 12 months, dividend yield 6.94%, beta 1.17, 52-week range 2.81–3.76 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 54.3
- neutral
- Bollinger (20, 2)
- 3.42 – 3.64
- in the upper half of the band · %B 0.83 · band width 6.3%
- SMA 50 / 200
- 3.61 / 3.32
- mixed trend
- MACD (12, 26, 9)
- -0.02 / -0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −1.4% | −0.6% | −0.8 pp | — |
| 3 months | +4.9% | −4.2% | +9.1 pp | — |
| 6 months | +5.8% | +4.3% | +1.5 pp | — |
| Year to date | +7.1% | +7.5% | −0.4 pp | — |
| 1 year | +10.0% | +9.9% | +0.1 pp | +4.9% |
| 3 years | +202.6% | +49.8% | +152.8 pp | +30.5% |
| 5 years | +435.5% | +42.8% | +392.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 4.8, median 5.9, max 10.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | 1.3 bn | 1.8 bn | 1.8 bn |
| Net income YoY | unavailable | +37.1% | −2.8% |
| Diluted EPS | 0.23 | 0.32 | 0.32 |
| Diluted EPS YoY | unavailable | +39.1% | 0.0% |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | -10.8 bn | -11.3 bn | 1.4 bn |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 12.4 bn EUR
- Financial debt
- unavailable EUR
- Net debt
- unavailable EUR
- Equity
- 14.1 bn EUR
- Total assets
- 245.4 bn EUR
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 12.2%
- ROA
- 0.7%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (EUR)
Income statement · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Gross profit | 5.9 bn | 5.0 bn | 4.9 bn | esef· 20 Oct 2026verified |
| Operating income | 2.0 bn | 2.1 bn | 2.1 bn | esef· 20 Oct 2026verified |
| Depreciation & amortisation | 519.0 m | 435.8 m | 421.0 m | esef· 20 Oct 2026verified |
| EBITDA | 2.5 bn ≈ | 2.5 bn ≈ | 2.6 bn ≈ | esef· 20 Oct 2026derived |
| Pre-tax income | 1.9 bn | 2.0 bn | 2.1 bn | esef· 20 Oct 2026verified |
| Income tax | 557.2 m | 558.6 m | 685.4 m | esef· 20 Oct 2026verified |
| Net income | 1.3 bn | 1.8 bn | 1.8 bn | esef· 20 Oct 2026verified |
| Diluted EPS | 0.23 | 0.32 | 0.32 | esef· 20 Oct 2026verified |
| Dividend per share | 0.23 | 0.25 | 0.25 | esef· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 30.0 bn | 18.4 bn | 12.4 bn | esef· 20 Oct 2026verified |
| Property, plant & equipment, net | 2.1 bn | 2.0 bn | 1.6 bn | esef· 20 Oct 2026verified |
| Goodwill | 1.0 bn | 1.0 bn | 1.0 bn | esef· 20 Oct 2026verified |
| Intangibles (excl. goodwill) | 1.5 bn | 1.5 bn | 1.5 bn | esef· 20 Oct 2026verified |
| Total assets | 235.2 bn | 239.6 bn | 245.4 bn | esef· 20 Oct 2026verified |
| Total liabilities | 221.3 bn | 224.6 bn | 231.3 bn | esef· 20 Oct 2026verified |
| Equity | 13.9 bn | 15.0 bn | 14.1 bn | esef· 20 Oct 2026verified |
| Shares outstanding at year end | 5.8 bn | 5.7 bn | 5.5 bn | esef· 20 Oct 2026derived |
Cash flow · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -10.5 bn | -11.1 bn | 1.7 bn | esef· 20 Oct 2026verified |
| Capex | 236.4 m | 206.0 m | 298.5 m | esef· 20 Oct 2026verified |
| Free cash flow | -10.8 bn ≈ | -11.3 bn ≈ | 1.4 bn ≈ | esef· 20 Oct 2026derived |
| Investing cash flow | -163.0 m | -253.6 m | -238.1 m | esef· 20 Oct 2026verified |
| Financing cash flow | -617.0 m | -382.3 m | -2.4 bn | esef· 20 Oct 2026verified |
| Dividends paid | 273.7 m | 591.3 m | 1.4 bn | esef· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 35.4% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 20.0 bn EUR
Key indicators
Coverage and freshness
Score by group
35% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.40 – 7.18 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E5.06 – 7.18 (Mid 6.38)19 companies used · median multiple 19.9x · quartiles 15.8x – 22.4xACS.MC, ADX.MC, AEDAS.MC, AENA.MC, AMS.MC, ANA.MC, CAF.MC, CLEO.MC, CMO.MC, DESA.MC, DIA.MC, EAT.MC, EDR.MC, ELE.MC, ENER.MC, ENO.MC, FAE.MC, FCC.MC, FDR.MC
- Dividend discount (DDM)3.40 – 4.64 (Mid 3.92)
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | 77.7% | 68 (on a fixed band) | 18% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 11.3x | 91 (vs peers) | 29% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.9% | 86 (on a fixed band) | 24% |
| Shareholder yield (distributions) · Returns | 6.8% | 98 (on a fixed band) | 18% |
| Payout ratio (FCF) · Returns | 99.1% | 30 (on a fixed band) | 12% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial68/100 · 1/3 factors with a value
- Returns71/100 · 2/2 factors with a value
- Valuation89/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BANCO DE SABADELL S.A. (SAB.MC). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: ROE 12.2%.
The estimated value range is 4.23–5.91 EUR per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 5.15 EUR, the price of 3.60 EUR leaves a potential of 43.0% (value / price − 1) and a margin of safety of 30.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- P/E (TTM): 11.3x
- FCF yield: 6.9%
- Shareholder yield (distributions): 6.8%
- The price is below the estimated value range
What contradicts it
- Payout ratio (FCF): 99.1%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.
Versus the vertical median
Listed companies from Spain · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ELE.MCEndesa SA | 46.9 bn | 21.4 | 26.4% | 10.5% | +0.5% | +43% / +134% |
| AENA.MCAena S.m.e. SA | 42.6 bn | 19.9 | 24.2% | 34.0% | +8.9% | +21% / +79% |
| AMS.MCAmadeus It Group Sociedad Anonima | 26.2 bn | 19.8 | 26.9% | 20.5% | +6.1% | −6% / −5% |
| ACS.MCAcs Actividades De Construccion Y Servicios, S.A. | 21.9 bn | 23.0 | 19.9% | 1.9% | +19.7% | +7% / +134% |
| ANA.MCAcciona SA | 11.7 bn | 14.5 | 16.9% | 4.0% | +5.5% | +24% / +66% |
| FCC.MCFomento De Construcciones Y Contratas S.A. | 5.0 bn | 30.3 | 5.3% | 1.7% | +6.9% | −8% / −14% |
| FDR.MCFluidra S.A. | 3.8 bn | 21.3 | 10.9% | 7.8% | +4.1% | −17% / +4% |
| DIA.MCDistribuidora Internacional De Alimentacion SA | 2.7 bn | 20.6 | 165.6% | 2.2% | −2.7% | +51% / +380,733% |
| CMO.MCCementos Molins S.A. | 2.5 bn | 13.6 | 14.3% | 18.0% | −3.1% | +31% / unavailable |
| ENO.MCElecnor SA | 2.4 bn | 21.9 | 10.5% | 2.5% | +15.1% | −3% / +58% |
| ALM.MCAlmirall S.A. | 2.4 bn | 51.1 | 3.1% | 4.2% | +12.4% | −11% / +32% |
| FAE.MCFaes Farma SA | 1.5 bn | 19.3 | 10.8% | 13.0% | +23.7% | +3% / +57% |
| AEDAS.MCAedas Homes SA | 1.0 bn | 17.1 | 57.8% | 7.0% | −24.8% | +0% / +38% |
| EDR.MCEdreams Odigeo SA | 574.4 m | 11.5 | 21.0% | 7.8% | −0.4% | +40% / −24% |
| EAT.MCAmRest Holdings SE | 506.0 m | 31.4 | 4.3% | 0.6% | +0.1% | −34% / −61% |
| ADX.MCAudax Renovables S.A. | 468.5 m | 23.9 | 9.3% | 1.0% | −5.4% | −23% / −18% |
| ATRY.MCAtrys Health, S.A. | 200.4 m | — | -49.5% | -71.1% | +8.5% | −3% / −29% |
| ENER.MCEcoener, S.A. | 175.6 m | 32.2 | 4.2% | 6.4% | +3.6% | −34% / −6% |
| ADZ.MCAdolfo Dominguez SA | 62.9 m | 38.3 | 9.0% | 1.2% | +1.8% | +39% / +40% |
| DESA.MCDesarrollos Especiales De Sistemas De Anclaje S.A. | 44.8 m | 9.2 | 152.3% | 10.0% | +2.2% | +19% / unavailable |
| EZE.MCGrupo Ezentis SA | 29.0 m | — | — | -9.3% | +147.2% | −30% / −37% |
| CLEO.MCCompañia Levantina De Edificacion Y Obras Publicas SA | 17.3 m | 14.4 | 4.1% | 3.4% | +13.4% | unavailable / unavailable |
| AYC.MCAyco Grupo Inmobiliario, S.A. | 16.4 m | — | -33.8% | — | −100.0% | unavailable / unavailable |
| EBRO.MCEbro Foods, S.A. | 3.0 m | 0.0 | 10.0% | 7.7% | −4.0% | −0% / +19% |
| A3M.MCAtresmedia Corporacion De Medios De Comunicacion, S.A. | — | — | 7.9% | 6.9% | −2.7% | +13% / +60% |
1- and 3-year price returns: for SAB.MC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Banco de Sabadell is a commercial bank with a strong focus on the Spanish market, financing households and companies. In 2025 the bank reported gross loans of 160,708 million euros, and its 2025-2027 Strategic Plan emphasises profitable growth and differentiated shareholder remuneration while the sale of TSB was pending.
SWOT
Strengths
- Solid liquidity and a capital position above regulatory requirements, with a high solvency indicator, according to the annual report.
- Loan growth in Spain and Mexico across the main segments shows the capacity to finance the real economy.
- A clear Spain-focused strategy, with a 2025-2027 plan targeting profitability and a differentiated shareholder remuneration policy.
Weaknesses
- CET1 ratios remain below the European banking average, which may limit flexibility under stress.
- Dependence on interest margins and on Spanish market conditions makes the bank sensitive to monetary policy changes.
- International exposure is significant, and the UK business is being reshaped through the TSB sale.
Opportunities
- Spanish economic growth and European funding programmes could support demand for mortgages and consumer credit.
- European regulatory simplification could reduce compliance costs and speed up digitisation of services.
- Development of the mobile app and AI-based solutions could improve efficiency and customer acquisition.
Threats
- Trade and geopolitical tensions could affect the economy and the quality of the loan portfolio.
- Regulatory pressure and consumer protection requirements could raise compliance costs.
- Continued cuts in interest rates could compress the interest margin if not offset by volume growth.
Risks
- Conduct riskhigh
Regulation on protecting vulnerable customers and claims over clauses and fees are a focus for the bank, which could generate additional costs.
- Credit riskmedium
A deterioration of the economic environment could raise problematic assets, even though the portfolio is diversified.
- Market and interest rate riskmedium
Lower interest rates could weigh on net interest income, and changes in balance sheet structure may alter exposure.
- Geopolitical riskmedium
Conflicts in Ukraine and the Middle East and US trade policy could affect the European economy and financial markets.
- Operational and technology risklow
System migration and accelerated digitisation carry risks to reliability, cybersecurity and operational continuity.
Investment thesis
What would need to be true (bull case)
- If the Spanish economy keeps its growth pace, loan demand could continue to support the bank's volumes and revenues.
- The 2025-2027 Strategic Plan and organic capital generation could support an attractive shareholder remuneration policy.
- Improving asset quality and solid liquidity could reduce risks in case of an economic slowdown.
What would break the thesis
- If interest rates keep falling, the interest margin could be pressured and revenue growth could slow down.
- A CET1 ratio below the European average could limit the competitive advantage in case of severe macroeconomic shocks.
- Geopolitical and trade tensions could affect the economy, while compliance costs could rise.
What to watch
- Completion of the TSB sale and use of excess capital2026
- Trend of the NPL ratio and cost of risk2026
- Execution of the 2025-2027 Strategic Plan2027
- Rollout of the new mobile app and AI solutions2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Banco Sabadell group provides banking services to retail, business, SME, private and corporate clients, mainly in Spain and in several other markets. According to the 2025 annual report, the bank concentrates its strategy on Spain as its main market, leveraging favourable macroeconomic prospects. The 2025-2027 Strategic Plan, approved in July 2025, rests on four pillars: a focus on Spain, profitable growth, execution of digital transformation and a differentiated shareholder remuneration policy.
Internationally the group operates in the United Kingdom through TSB and in Mexico, where lending grew significantly in 2025. Operating performance was also shaped by the sale of TSB Banking Group plc, which allows the return of excess capital and focuses development on the Spanish market. The bank considers the transaction positive for both solvency and profitability.
In terms of risk, the group reports a medium-low risk profile with solid liquidity and a capital position above regulatory requirements for 2026. Technology investment, including a new mobile app and AI-based tools, is part of the strategy to improve efficiency and customer experience.
Segments
Spain
Spain is the group's main market, where gross performing loans grew 4.9 percent in 2025, with increases across all segments, notably mortgages and consumer credit. The 2025-2027 Strategic Plan places this market at the centre of growth.
United Kingdom (TSB)
At TSB, gross performing loans were stable at constant exchange rates in 2025. The bank has however announced the sale of TSB Banking Group plc, which changes the structure of the international segment.
Mexico
In Mexico, gross performing loans grew 23.5 percent at constant exchange rates in 2025, well above the pace in Spain. The growth came alongside a still weak economy and a restrictive monetary policy, according to the report.
Market context
The annual report describes a European environment in which Spanish banks stood out for profitability, although their CET1 ratios remained below the European average. Spanish economic growth of around 3 percent and ECB rate cuts supported loan demand and asset quality.
European authorities have promoted regulatory simplification and initiatives such as the Savings and Investment Union, which could reduce administrative burdens for banks. Trade and geopolitical tensions nonetheless remain a source of uncertainty for market prospects.
Trends
- Lower interest ratesmixed
The ECB cut the deposit facility rate through late 2025, easing funding costs but potentially pressuring net interest margins if reductions continue.
- Spanish economic growthtailwind
The Spanish economy grew above the euro area average, supported by demographics and Next Generation EU funds, which underpins loan demand and portfolio quality.
- Trade and geopolitical tensionsheadwind
Higher US tariffs and conflicts in Ukraine and the Middle East create uncertainty that could weigh on economic activity and loan quality.
- European regulatory simplificationtailwind
Omnibus packages and the Savings and Investment Union initiative could reduce administrative burdens and facilitate banking activity.
Competitive position
The supplied sources do not describe the bank's direct competitors. The annual report does mention a Spanish banking sector with good profitability in a European context, which points to constant competitive pressure in the domestic market.
- Unnamed Spanish bank, not identified in source
The source does not name competitors; the analysis is limited to the Spanish sector context.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202520 Oct 2026
- Annual report 202408 May 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Banco de Sabadell, S.A. · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.