Banco Bilbao (BBVA) AI Stock Analysis

• Market Cap: $109.49B
• Dividend Yield: 4.11%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.70
• Revenue Growth: 25.64%
• EPS Growth: 17.13%
• Country: US
• Employees: 124,741
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Diversified
• EPS (TTM): 0.53
• Shares Outstanding: 5,763,285,600
• 10 Day Avg. Volume: 1,714,121
• 30 Day Avg. Volume: 2,190,629
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 4.91
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 12.26
• 1Y Price Target: $19.00
• Price Target Upside: -0.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $19.00 ▼(-0.26% Downside)

BBVA's overall score is driven by strong financial performance with robust income growth and profitability, although high leverage and negative cash flows are areas of concern. The bullish technical indicators and low valuation metrics further support the stock's attractiveness. The positive earnings call, despite some noted challenges, reinforces the stock's potential.

Positive Factors

Earnings

Net profit is 8% ahead of consensus.

Market Position

BBVA is defined as a compounder with high-quality franchise businesses, sustainable revenues, dominant market positions, and pricing power.

Negative Factors

Expenses

Costs were a 10% higher vs. consensus.

Valuation

BBVA trades at a steep discount to peers despite a c.19% ROTE.

Banco Bilbao Business Overview & Revenue Model

Company Description

Banco Bilbao Vizcaya Argentaria (BBVA) is a multinational financial services company based in Spain, primarily operating in the banking sector. Founded in 1857, BBVA has a significant presence in various countries, including Spain, Mexico, the United States, and several countries in South America and Europe. The bank provides a wide range of products and services, including retail banking, corporate banking, investment banking, asset management, and insurance services, catering to both individual customers and businesses.

How the Company Makes Money

BBVA generates revenue through various key streams, primarily from interest income, fees, and commissions. The bank earns interest income by lending money to customers at higher rates than the interest it pays on deposits. This interest rate spread is a major contributor to its profitability. Additionally, BBVA charges fees for services such as account maintenance, transactions, and investment services, which add to its revenue. The bank also engages in investment banking activities, including underwriting and advisory services, which provide further income. Significant partnerships, especially in the fintech sector, enhance BBVA's technological capabilities and customer reach, contributing to its earnings through innovative financial products and services. Furthermore, the bank's focus on digital transformation and customer-centric services has positioned it to capture a broader market share and increase profitability.

Banco Bilbao Financial Statement Overview

Summary

BBVA demonstrates strong growth and profitability in its income statement with a 37.5% revenue increase and a high net profit margin of 24.3%. However, the high leverage indicated by a debt-to-equity ratio of 1.96 and negative operating and free cash flow raise concerns about liquidity and financial risk.

Income Statement

The income statement shows strong revenue growth with a 37.5% increase in revenue year-over-year from 2024 to TTM. The gross profit margin stands at 76.9% for TTM, demonstrating high profitability. The net profit margin is also impressive at 24.3%, indicating efficient cost management. EBIT and EBITDA margins are healthy at 40.1% and 41.1%, respectively, which reflect robust operational efficiency. Overall, the income statement reflects strong revenue and profit growth, a key strength for BBVA.

Balance Sheet

BBVA's balance sheet shows a relatively high debt-to-equity ratio of 1.96 for TTM, indicating significant leverage, which is typical for banks but presents potential risk. However, the return on equity is strong at 19.2%, showcasing effective use of shareholder capital. The equity ratio is 7.1%, slightly on the lower side, suggesting a lower proportion of equity financing. The balance sheet reflects a stable financial position with some leverage risk.

Cash Flow

The cash flow statement reveals a challenging situation with negative operating cash flow of -30.98 billion and free cash flow of -32.2 billion for TTM. The free cash flow to net income ratio is negative, indicating cash flow issues compared to profitability. Despite a significant free cash flow growth rate of 66.2% from 2024 to TTM, the overall negative cash flow is a concern. The cash flow analysis highlights liquidity challenges that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.52B	75.63B	27.16B	22.98B	22.82B	23.11B
Gross Profit	31.93B	33.63B	28.97B	22.98B	22.82B	23.11B
EBITDA	17.83B	16.94B	13.82B	11.60B	8.48B	6.54B
Net Income	10.55B	10.05B	8.02B	6.36B	4.65B	1.30B
Balance Sheet
Total Assets	772.86B	772.40B	775.56B	712.09B	662.88B	733.80B
Cash, Cash Equivalents and Short-Term Investments	151.20B	250.00B	256.84B	225.41B	228.87B	208.37B
Total Debt	107.72B	144.43B	179.11B	114.64B	116.09B	110.80B
Total Liabilities	713.60B	712.39B	720.29B	661.57B	614.13B	683.78B
Stockholders Equity	55.08B	55.65B	51.70B	46.90B	43.91B	44.55B
Cash Flow
Free Cash Flow	-32.20B	-19.39B	-2.54B	21.28B	-2.19B	38.23B
Operating Cash Flow	-30.98B	-18.19B	-721.00M	23.72B	-1.24B	39.35B
Investing Cash Flow	-1.32B	-1.42B	-1.42B	-3.91B	-1.63B	-37.00M
Financing Cash Flow	-3.21B	-2.57B	-1.84B	-7.56B	-4.35B	-2.07B

Banco Bilbao Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 19.05 is above the 20-day moving average (MA) of 16.69, above the 50-day MA of 15.79, and above the 200-day MA of 12.84, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 79.87 is Negative, neither overbought nor oversold. The STOCH value of 94.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBVA.

Banco Bilbao Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	80 Outperform	$224.34B	13.04	10.69%	4.99%	-2.96%	-13.66%
SAN	78 Outperform	$139.47B	9.75	12.85%	2.42%	-14.74%	17.03%
BBVA	78 Outperform	$109.49B	9.67	18.32%	4.11%	25.64%	17.13%
BCS	78 Outperform	$71.50B	9.37	9.83%	2.09%	16.06%	64.31%
NWG	77 Outperform	$58.84B	9.41	13.80%	4.25%	10.03%	29.51%
ING	75 Outperform	$73.96B	11.51	12.08%	4.67%	1.13%	-1.14%
Sector *	62 Neutral	C$15.64B	6.67	13.72%	5.97%	22.38%	-10.22%