Banco De Sabadell, S.a

Banco De Sabadell maintains a capital structure characterized by a debt-to-equity ratio of 1.92, reflecting significant leverage typical of the banking sector. The bank holds total assets of €245.4 billion against total liabilities of €231.3 billion, resulting in total equity of €14.0 billion. Liquidity is assessed as medium risk, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow stands at €1.68 billion, while free cash flow is negative at -€127.7 million due to capital expenditures of €610.8 million.

Profitability metrics indicate a return on equity (ROE) of 12.64% and a return on assets (ROA) of 0.72%. The bank reports net income of €1.78 billion on revenue of €3.54 billion, demonstrating a net margin of approximately 50%. While specific cohort medians are not provided for direct comparison, the ROE suggests efficient use of equity capital relative to the asset base. The valuation snapshot shows a price-to-earnings ratio of 9.1 and a price-to-book ratio of 1.15, indicating the market values the bank slightly above its book value.

Revenue concentration by segment and geography is not detailed in the available data. The analysis relies on aggregate financial figures, with no specific breakdown of income sources by business line or regional exposure provided in the input.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, preventing a year-over-year or multi-year trend assessment. The share count remains stable with 4.998 billion basic and diluted shares outstanding, indicating no recent significant dilution events.

Risk assessment highlights medium liquidity risk and low dilution risk. The primary financial flag is the negative net cash position after debt subtraction, which requires monitoring of funding stability. The debt-to-equity ratio of 1.92 is a standard metric for banking leverage but contributes to the overall risk profile.

Recent observations include analyst estimates with a mean price target of €3.38 and a median target of €3.45, against a current market price of €3.232. The mean recommendation is 2.67, with 1 strong buy, 7 buy, and 11 hold ratings, suggesting a cautious but generally positive sentiment from analysts. No specific filing, news, or transcript observations are provided in the input data.

Net income grew at a 35.3% CAGR over four years, demonstrating strong historical profitability expansion.

Analysts project 4.7% upside to the mean price target of 3.38, suggesting modest valuation improvement potential.

The stock trades at 1.15x tangible book value, offering a reasonable entry point relative to intrinsic asset value.

Free cash flow turned negative to -127.7 million in FY2026, signaling a severe deterioration in cash generation.

Revenue declined 6.0% year-over-year in FY2026, indicating weakening top-line growth momentum for the bank.

Debt-to-equity ratio of 1.92 is in the bottom quartile of peers, reflecting elevated financial leverage risk.

Cash conversion of 0.95 is below the banking cohort median of 1.13, indicating weaker earnings quality.

Revenue €855.0M, −3,4% YoY; Net income −29,0% YoY.

• ▍Revenue €855.0M, −3,4% YoY
• ▍Net income −29,0% YoY
• ▍Net margin 40.6%

Revenue €1.20B, −4,0% YoY; Net income −17,3% YoY.

• ▍Revenue €1.20B, −4,0% YoY
• ▍Net income −17,3% YoY
• ▍Net margin 34.6%

Revenue €885.0M; Net margin 55.3%.

• ▍Revenue €885.0M
• ▍Net margin 55.3%

Revenue €1.25B; Net margin 40.1%.

• ▍Revenue €1.25B
• ▍Net margin 40.1%

Revenue €3.54B, −6,0% YoY; Net income −2,8% YoY.

• ▍Revenue €3.54B, −6,0% YoY
• ▍Net income −2,8% YoY
• ▍Free cash flow −115,2% YoY
• ▍Net margin 50.2%

Revenue €3.76B, −20,4% YoY; Net income +37,1% YoY.

• ▍Revenue €3.76B, −20,4% YoY
• ▍Net income +37,1% YoY
• ▍Free cash flow −18,7% YoY
• ▍Net margin 48.6%

Revenue €4.72B, +24,3% YoY; Net income +49,8% YoY.

• ▍Revenue €4.72B, +24,3% YoY
• ▍Net income +49,8% YoY
• ▍Free cash flow +43,8% YoY
• ▍Net margin 28.2%

Revenue €3.80B, +10,9% YoY; Net income +67,7% YoY.

• ▍Revenue €3.80B, +10,9% YoY
• ▍Net income +67,7% YoY
• ▍Free cash flow +30,4% YoY
• ▍Net margin 23.4%

Revenue €3.43B; Net margin 15.5%.

• ▍Revenue €3.43B
• ▍Net margin 15.5%