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Banco Bilbao (BBVA)
NYSE:BBVA
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Banco Bilbao
(NYSE:BBVA)
82Outperform
Positive Factors
Earnings
Net profit is 8% ahead of consensus.
Growth Potential
BBVA is one of the '25 stocks for 2025' and is added to the Europe 1 list of top ideas, showcasing its potential for growth.
Negative Factors
Costs
Costs were a 10% higher vs. consensus.
Banco Bilbao (BBVA) vs. S&P 500 (SPY)
Market Cap
$78.59B
Dividend Yield4.33%
Average Volume (3M)2.83M
Price to Earnings (P/E)7.6
Beta (1Y)0.77
Revenue Growth10.29%
EPS Growth28.54%
CountryUS
Employees125,916
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)1.87
Shares Outstanding5,763,285,600
10 Day Avg. Volume4,084,405
30 Day Avg. Volume2,831,949
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)1.85
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.68Price Target Upside-0.44% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Banco Bilbao Business Overview & Revenue Model
Company DescriptionSpain-based Banco Bilbao Vizcaya Argentaria SA provides traditional banking services including retail banking, asset management, private banking, and wholesale banking. The company operates in Spain, Mexico, South America, the United States, Turkey, Asia-Pacific, and rest of Europe.
How the Company Makes MoneyBBVA generates revenue primarily through interest income from its lending activities, which include mortgages, consumer loans, and commercial loans. Additionally, the bank earns fees and commissions from various financial services such as wealth management, brokerage, and advisory services. BBVA also benefits from trading and investment activities, including securities trading and foreign exchange operations. The bank's strategic partnerships and acquisitions help enhance its market presence and product offerings, contributing to its overall earnings. Furthermore, BBVA leverages its extensive international network to drive growth in emerging markets, balancing its revenue streams across diverse geographical regions.
Banco Bilbao Financial Statement Overview
Summary
Overall, BBVA exhibits a strong financial position with notable revenue growth, profitability, and efficient cash flow management. The balance sheet remains stable with manageable leverage, although there are periods of variability in operational efficiency and cash flows. The company is well-positioned in the banking industry, though careful attention to debt levels and operational efficiency is advised to maintain its strong financial performance.Income Statement
BBVA demonstrates strong revenue growth with a significant increase in Total Revenue over the years, especially evident in the TTM (Trailing-Twelve-Months) period. The Gross Profit Margin and Net Profit Margin are healthy, indicating efficient cost management and profitability. However, fluctuations in EBIT and EBITDA margins suggest some variability in operational efficiency.82
Very Positive
Balance Sheet
The balance sheet reflects a solid equity base with a stable Debt-to-Equity Ratio, suggesting manageable leverage levels. Return on Equity (ROE) is robust, indicating effective use of equity to generate profits. The Equity Ratio is consistent, highlighting a stable asset structure. Potential risks include the significant Total Debt, which requires careful management.78
Positive
Cash Flow
The cash flow statement shows strong Free Cash Flow growth in the latest period, contributing to financial flexibility. The Operating Cash Flow to Net Income Ratio is favorable, indicating efficient cash generation relative to profits. There are fluctuations in Free Cash Flow, suggesting potential variability in cash generation capabilities.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 45.48B | 27.16B | 11.00M | 22.82B | 23.11B | 24.62B | Gross Profit |
| 45.48B | 29.54B | 11.00M | 22.82B | 23.11B | 24.62B | EBIT |
| 12.31B | 15.30B | 9.95B | 6.56B | 2.69B | 5.57B | EBITDA |
| 7.50B | 0.00 | 11.57B | 8.48B | 0.00 | 8.47B | Net Income Common Stockholders |
| 9.68B | 8.02B | 6.36B | 4.65B | 3.84B | 3.51B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 162.25B | 256.84B | 159.17B | 134.96B | 172.54B | 123.41B | Total Assets |
| 775.56B | 775.56B | 713.14B | 662.88B | 736.26B | 698.69B | Total Debt |
| 68.71B | 179.11B | 60.12B | 61.72B | 64.59B | 63.96B | Net Debt |
| -31.34B | 95.74B | -24.98B | -12.84B | -33.53B | 1.74B | Total Liabilities |
| 68.71B | 720.29B | 662.52B | 614.13B | 686.24B | 643.77B | Stockholders Equity |
| 51.70B | 51.70B | 46.99B | 43.91B | 44.55B | 48.72B |
| Cash Flow | Free Cash Flow | ||||
| 62.25B | -2.54B | 21.28B | -2.19B | 38.23B | -9.59B | Operating Cash Flow |
| 63.59B | -721.00M | 23.72B | -1.24B | 39.35B | -8.21B | Investing Cash Flow |
| -65.33B | -1.42B | -3.91B | -1.63B | -37.00M | 98.00M | Financing Cash Flow |
| -2.90B | -1.84B | -7.56B | -4.35B | -2.07B | -2.70B |
Banco Bilbao Technical Analysis
Positive
13.74
Price Trends
11.73
Positive
10.77
Positive
10.45
Positive
Market Momentum
0.61
Positive
66.27
Neutral
73.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBVA, the sentiment is Positive. The current price of 13.74 is above the 20-day moving average (MA) of 13.14, above the 50-day MA of 11.73, and above the 200-day MA of 10.45, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBVA.
Banco Bilbao Risk Analysis
Banco Bilbao disclosed 22 risk factors in its most recent earnings report. Banco Bilbao reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Bilbao Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $78.59B | 7.57 | 18.77% | 4.33% | 10.29% | 28.54% | |
81 Outperform | $51.83B | 7.30 | 20.84% | 2.99% | 1.25% | 20.03% | |
77 Outperform | $97.73B | 8.10 | 13.16% | 2.35% | 11.61% | 24.35% | |
73 Outperform | $127.20B | 11.34 | 6.04% | 3.28% | 8.20% | 49.26% | |
70 Outperform | $20.06B | 6.87 | 10.44% | 1.58% | -8.06% | 3.79% | |
66 Neutral | $16.15B | ― | 11.61% | 4.98% | -3.94% | ― | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
BBVA
Banco Bilbao
13.74
3.15
29.75%
BBD
Banco Bradesco SA
2.00
-0.67
-25.09%
BSBR
Banco Santander Brasil
4.35
-1.13
-20.62%
C
Citigroup
67.50
11.97
21.56%
ITUB
Itau Unibanco
5.65
-0.81
-12.54%
SAN
Banco Santander SA
6.39
2.12
49.65%
Banco Bilbao Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 19.17% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance by BBVA, with record profitability and significant growth in key areas such as net profit, loan portfolio, and sustainability initiatives. Despite challenges like currency depreciation and competitive pressures in Spain, the overall outlook remains positive with strategic focus on digital transformation and sustainable growth.Highlights
Record-Breaking Profitability
BBVA achieved a return on tangible equity of 19.7% and a return on equity of 18.9%, marking the best figures over the past decade.
Strong Earnings and Growth
Net attributable profit surpassed €10 billion, growing 25% from the previous year, and earnings per share increased by 28% year-over-year.
Significant Loan Portfolio Expansion
The loan portfolio increased by 14.3%, and the bank acquired 11.4 million new customers.
Sustainability Milestones
Channeled €100 billion in sustainable business, surpassing the cumulative 2018-2025 goal of €300 billion one year early.
Shareholder Returns
Total distributions to shareholders amounted to €5 billion, with a cash dividend of €0.70 per share and a new share buyback program.
Lowlights
Currency Depreciation Challenge
Despite strong growth, the bank faced market headwinds with relatively high currency depreciation, particularly in the Mexican peso.
Spanish Market Competition
The competitive environment in Spain, especially in mortgages, may impact loan growth expectations due to aggressive pricing.
Potential Regulatory Impacts
Basel IV impacts might slightly affect capital in 2028 due to operational risk, although no negative impacts are expected in 2025-2027.
Company Guidance
During the call, BBVA highlighted its strong financial performance in 2024, achieving a return on tangible equity of 19.7% and surpassing €10 billion in net attributable profit for the first time. The bank also reported a 14.3% increase in its loan portfolio and added 11.4 million new customers. Shareholders benefited from a €5 billion distribution, including a €0.70 cash dividend per share and a share buyback program worth €993 million. Furthermore, BBVA maintained a CET1 ratio of 12.88%, comfortably above its target. Notably, the bank channeled nearly €100 billion into sustainable business, reinforcing its commitment to sustainability. Looking ahead, BBVA plans to continue its strategic focus on profitable growth and customer satisfaction, with anticipated loan growth in several key markets, while also leveraging AI and digital capabilities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.