Executive Summary
Banco de Sabadell, S.A. provides personal, business, and private banking services in Spain and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2% per year for the next 3 years
Snowflake Analysis
Undervalued with solid 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
0.9%
SAB
0.5%
ES Banks
1.1%
ES Market
1 Year Return
-10.5%
SAB
-5.5%
ES Banks
9.0%
ES Market
Return vs Industry: SAB underperformed the Spanish Banks industry which returned -5.5% over the past year.
Return vs Market: SAB underperformed the Spanish Market which returned 9% over the past year.
Shareholder returns
| SAB | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 0.5% | 1.1% |
| 30 Day | -15.1% | 4.7% | 2.3% |
| 90 Day | -13.5% | 8.3% | 6.7% |
| 1 Year | -9.7%-10.5% | -2.3%-5.5% | 12.8%9.0% |
| 3 Year | -37.4%-41.8% | -15.6%-24.5% | 17.0%5.9% |
| 5 Year | -56.2%-64.3% | -29.3%-41.9% | 12.7%-6.0% |
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
12 hours ago | Simply Wall St
Are Insiders Selling Banco de Sabadell, S.A. (BME:SAB) Stock?2 weeks ago | Simply Wall St
Some Banco de Sabadell (BME:SAB) Shareholders Have Copped A Big 57% Share Price Drop1 month ago | Simply Wall St
Does Banco de Sabadell, S.A. (BME:SAB) Have A Place In Your Dividend Portfolio?Valuation
Is Banco de Sabadell undervalued compared to its fair value and its price relative to the market?
37.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SAB (€0.85) is trading below our estimate of fair value (€1.37)
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 (6.1x) compared to the Banks industry average (9.6x).
PE vs Market: SAB is good value based on its PE Ratio (6.1x) compared to the Spanish market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: SAB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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?
-2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAB's earnings are forecast to decline over the next 3 years (-2% per year).
Earnings vs Market: SAB's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: SAB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SAB's revenue (5.8% per year) is forecast to grow faster than the Spanish market (4.6% per year).
High Growth Revenue: SAB's revenue (5.8% 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 (5.2%).
Next Steps
Past Performance
How has Banco de Sabadell performed over the past 5 years?
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAB has high quality earnings.
Growing Profit Margin: SAB's current net profit margins (18.4%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: SAB's earnings have grown by 0.6% per year over the past 5 years.
Accelerating Growth: SAB's earnings growth over the past year (177.4%) exceeds its 5-year average (0.6% per year).
Earnings vs Industry: SAB earnings growth over the past year (177.4%) exceeded the Banks industry -3.7%.
Return on Equity
High ROE: SAB's Return on Equity (5.9%) 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 covered by short term assets (assets are 1.2x 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 (4.05%)
Next Steps
Dividend
What is Banco de Sabadell's current dividend yield, its reliability and sustainability?
4.69%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SAB's dividend (4.69%) is higher than the bottom 25% of dividend payers in the Spanish market (2.21%).
High Dividend: SAB's dividend (4.69%) is low compared to the top 25% of dividend payers in the Spanish market (5.34%).
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 (28.8%), 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 (44.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
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 ($USD108.42K) is below average for companies of similar size in the Spanish market ($USD935.16K).
Compensation vs Earnings: Jaime's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 12.4yrs | €100.00k | 0.027% €1.3m | |
| GM, Chief Risk Officer & Executive Director | 4.8yrs | €170.00k | 0.0057% €267.7k | |
| General Secretary & Executive Director | 1.8yrs | €34.00k | 0.0042% €198.8k | |
| GM & CFO | 0yrs | no data | no data | |
| COO, Corporate Development Director and GM of Operations & People | 0yrs | no data | no data | |
| MD and Deputy General Manager of Corporate & Investment Banking | 1.9yrs | no data | no data | |
| Assistant General Manager of Technology Innovation | 1.1yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Assistant General Manager of Legal | 0yrs | no data | no data | |
| Assistant General Manager of Compliance | 1.8yrs | no data | no data |
1.6yrs
Average Tenure
56.5yo
Average Age
Experienced Management: SAB's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 12.4yrs | €100.00k | 0.027% €1.3m | |
| GM, Chief Risk Officer & Executive Director | 4.8yrs | €170.00k | 0.0057% €267.7k | |
| General Secretary & Executive Director | 1.8yrs | €34.00k | 0.0042% €198.8k | |
| General Manager | 0yrs | no data | no data | |
| Independent Vice Chairman of the Board | 9.3yrs | €205.00k | 0.0034% €158.2k | |
| Chairman of Dexia Sabadell | 0yrs | no data | no data | |
| Chairman of Banco Urquijo | 0yrs | no data | no data | |
| Chairman of Solvia | 0yrs | no data | no data | |
| Chairman of BanSabadell Vida | 0yrs | no data | no data | |
| Independent Director | 5.1yrs | €160.00k | 0.00018% €8.5k |
5.1yrs
Average Tenure
58.5yo
Average Age
Experienced Board: SAB's board of directors are considered experienced (5.1 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: €4.722b
- Shares outstanding: 5.54b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BNDS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2001 |
| SAB | BME (Bolsas y Mercados Espanoles) | Yes | Ordinary Shares | ES | EUR | Apr 2001 |
| 0H00 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Apr 2001 |
| BDSB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2001 |
| SABE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Apr 2001 |
| SAB | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Apr 2001 |
| BDSB | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Apr 2001 |
| BNDS.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:18 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.