BME:SAB

Stock Analysis Report

Banco de Sabadell

Executive Summary

Banco de Sabadell, S.A. provides personal, business, and private banking services in Spain and internationally.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Banco de Sabadell's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

SAB

-2.8%

ES Banks

-0.4%

ES Market


1 Year Return

-7.9%

SAB

-8.8%

ES Banks

7.7%

ES Market

Return vs Industry: SAB matched the Spanish Banks industry which returned -8.8% over the past year.

Return vs Market: SAB underperformed the Spanish Market which returned 7.7% over the past year.


Shareholder returns

SABIndustryMarket
7 Day2.2%-2.8%-0.4%
30 Day-10.6%4.9%3.3%
90 Day-15.3%3.2%6.5%
1 Year-7.1%-7.9%-5.6%-8.8%11.4%7.7%
3 Year-32.3%-37.1%-15.8%-24.7%17.5%6.4%
5 Year-55.7%-63.9%-33.0%-45.0%9.3%-8.8%

Price Volatility Vs. Market

How volatile is Banco de Sabadell's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco de Sabadell undervalued compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAB (€0.87) is trading below our estimate of fair value (€1.34)

Significantly Below Fair Value: SAB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAB is good value based on its PE Ratio (6.9x) compared to the Banks industry average (9.4x).

PE vs Market: SAB is good value based on its PE Ratio (6.9x) compared to the Spanish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SAB is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: SAB is good value based on its PB Ratio (0.4x) compared to the ES Banks industry average (0.4x).


Next Steps

Future Growth

How is Banco de Sabadell forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAB's forecast earnings growth (1.3% per year) is above the savings rate (0.4%).

Earnings vs Market: SAB's earnings (1.3% per year) are forecast to grow slower than the Spanish market (11.3% per year).

High Growth Earnings: SAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAB's revenue (5.4% per year) is forecast to grow faster than the Spanish market (4.7% per year).

High Growth Revenue: SAB's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAB's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Banco de Sabadell performed over the past 5 years?

0.01%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAB has a high level of non-cash earnings.

Growing Profit Margin: SAB's current net profit margins (16.3%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: SAB's earnings have grown by 0.01% per year over the past 5 years.

Accelerating Growth: SAB's earnings growth over the past year (150.9%) exceeds its 5-year average (0.01% per year).

Earnings vs Industry: SAB earnings growth over the past year (150.9%) exceeded the Banks industry -3.7%.


Return on Equity

High ROE: SAB's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banco de Sabadell's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAB's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: SAB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SAB has a low allowance for bad loans.

Low Risk Liabilities: SAB's liabilities are made up of primarily low risk sources of funding.

Loan Level: SAB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SAB's loans are broadly funded by customer deposits.

Level of Bad Loans: SAB has a high level of bad loans (3.58%)


Next Steps

Dividend

What is Banco de Sabadell's current dividend yield, its reliability and sustainability?

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAB's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Spanish market (2.29%).

High Dividend: SAB's dividend (4.59%) is low compared to the top 25% of dividend payers in the Spanish market (5.36%).


Stability and Growth of Payments

Stable Dividend: SAB's dividend payments have been volatile in the past 10 years.

Growing Dividend: SAB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.9%), SAB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAB's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jaime Guardiola Romojaro (62yo)

12.4yrs

Tenure

€100,000

Compensation

Mr. Jaime Guardiola Romojaro has been an Executive Director of Banco de Sabadell SA since September 27, 2007. Mr. Guardiola Romojaro serves as a Managing Manager at Banco de Sabadell SA since September 201 ...


CEO Compensation Analysis

Compensation vs Market: Jaime's total compensation ($USD108.62K) is below average for companies of similar size in the Spanish market ($USD936.89K).

Compensation vs Earnings: Jaime's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Josep Oliu Creus
Executive Chairman of the Board20.2yrs€269.00k0.0076% 374.6k
Jaime Guardiola Romojaro
CEO, MD & Executive Director12.4yrs€100.00k0.027% 1.3m
José Negro Rodríguez
GM & Director7.8yrs€118.00k0.050% 2.4m
David Vegara Figueras
GM, Chief Risk Officer & Executive Director4.8yrs€116.39k0.0056% 273.7k
María José García Beato
General Secretary & Executive Director1.8yrs€100.00k0.0042% 203.2k
Tomás Varela Muiña
GM & CFO0yrsno datano data
Miquel Montes Güell
COO, Corporate Development Director and GM of Operations & People0yrsno datano data
José Nieto de la Cierva
MD and Deputy General Manager of Corporate & Investment Banking1.9yrsno datano data
Alfonso Calle
Assistant General Manager of Technology Innovation1.1yrsno datano data
Cecilia Romero
Head of Investor Relations0yrsno datano data

1.4yrs

Average Tenure

59yo

Average Age

Experienced Management: SAB's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Josep Oliu Creus
Executive Chairman of the Board20.2yrs€269.00k0.0076% 374.6k
Jaime Guardiola Romojaro
CEO, MD & Executive Director12.4yrs€100.00k0.027% 1.3m
José Negro Rodríguez
GM & Director7.8yrs€118.00k0.050% 2.4m
David Vegara Figueras
GM, Chief Risk Officer & Executive Director4.8yrs€116.39k0.0056% 273.7k
María José García Beato
General Secretary & Executive Director1.8yrs€100.00k0.0042% 203.2k
Fernando Pérez-Hickman Muñoz
General Manager0yrsno datano data
José Javier Echenique Landiríbar
Independent Vice Chairman of the Board9.3yrs€205.00k0.0033% 162.1k
Francisco Vallejo López
Chairman of Banco Urquijo0yrsno datano data
Josep Tarrés i Busquets
Chairman of Solvia0yrsno datano data
Jochen Schwarz
Chairman of BanSabadell Vida0yrsno datano data

8.5yrs

Average Tenure

65yo

Average Age

Experienced Board: SAB's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SAB insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Banco de Sabadell, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco de Sabadell, S.A.
  • Ticker: SAB
  • Exchange: BME
  • Founded: 1881
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €4.897b
  • Shares outstanding: 5.62b
  • Website: https://www.bancsabadell.com

Number of Employees


Location

  • Banco de Sabadell, S.A.
  • Torre Banco Sabadell
  • Av. Diagonal, 407 bis
  • Alicante
  • 8008
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNDS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2001
SABBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURApr 2001
0H00LSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2001
BDSBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2001
SABEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 2001
SABWBAG (Wiener Boerse AG)YesOrdinary SharesATEURApr 2001
BDSBETLX (Eurotlx)YesOrdinary SharesITEURApr 2001
BNDS.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

Biography

Banco de Sabadell, S.A. provides personal, business, and private banking services in Spain and internationally. The company offers various accounts; deposits and long-term saving plans; cards; investments in exchange and markets, funds, and structured deposits; mortgages and personal loans; auto and technology products renting services; car, house, health, life care, and death insurance; and home banking services. It also provides financing products comprising lines of credit, collections, payments, loans and credits, preferred/subsidized financing, bonds and guarantees, and electronic invoicing, as well as leasing and renting services; and other services. The company operates 2,457 branches. Banco de Sabadell, S.A. was founded in 1881 and is headquartered in Alicante, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:25
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.