Popular (BPOP) AI Stock Analysis

• Market Cap: $8.33B
• Dividend Yield: 2.3%
• Average Volume (3M): 593.04K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.89
• Revenue Growth: 5.87%
• EPS Growth: 53.36%
• Country: US
• Employees: 9,274
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.14
• Shares Outstanding: 66,674,860
• 10 Day Avg. Volume: 733,445
• 30 Day Avg. Volume: 593,040
• PEG Ratio: 0.80
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 14.60
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 9.60
• 1Y Price Target: $141.00
• Price Target Upside: 11.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $133.00 ▲(5.29% Upside)

Popular's strong financial performance and attractive valuation are key strengths, supported by positive technical indicators. However, challenges in cash flow management and credit metrics from large commercial loans slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable business model and effective market strategies, supporting long-term financial health.

Loan Growth

Strong loan growth reflects robust demand and effective lending strategies, contributing to future revenue and market expansion.

Digital Banking Initiatives

Advancements in digital banking enhance customer experience and operational efficiency, positioning the company for sustained growth.

Negative Factors

Credit Metrics Impact

Large commercial loans affecting credit metrics can increase risk exposure and necessitate higher provisions, impacting profitability.

Nonperforming Loan Ratio Increase

An increase in nonperforming loans suggests potential asset quality issues, which could strain future earnings and capital reserves.

Cash Flow Management

Challenges in cash flow management may hinder the company's ability to reinvest and manage liabilities effectively, affecting long-term sustainability.

Popular Business Overview & Revenue Model

Company Description

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. As of December 31, 2021, it operated 169 branches; and 616 ATMs in Puerto Rico, 23 ATMs in the Virgin Islands, and 91 ATMs in the United States Mainland. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

How the Company Makes Money

Popular generates revenue through several key streams, including net interest income from loans and deposits, non-interest income from fees associated with banking services, and investment income. The bank earns interest by lending money at higher rates than it pays on deposits. Non-interest income is derived from service charges, transaction fees, and wealth management services. Additionally, Popular engages in partnerships with various financial institutions and service providers, enhancing its product offerings and customer reach, which contributes to its overall earnings.

Popular Financial Statement Overview

Summary

Popular exhibits strong financial health across all verticals. The income statement shows robust growth and profitability, while the balance sheet reflects a solid capital structure with low leverage. Cash flow generation is strong, supporting operational and strategic initiatives. The company is well-positioned for continued growth and stability, with effective management of resources and risks.

Income Statement

Popular has demonstrated consistent revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.51%. The gross profit margin remains strong at 63.19%, indicating efficient cost management. Net profit margin improved to 16.93%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showing effective operational management. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company's debt-to-equity ratio is low at 0.23, indicating prudent leverage management. Return on equity is solid at 12.46%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a strong capital structure. However, the slight increase in total debt warrants monitoring. Overall, the balance sheet is robust with a strong equity position.

Cash Flow

Operating cash flow to net income ratio is low, but free cash flow growth is strong at 33.61%, indicating improved cash generation. The free cash flow to net income ratio is healthy at 74.73%, reflecting efficient cash conversion. Despite fluctuations in operating cash flow coverage, the overall cash flow position is strong, supporting future growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35B	4.19B	3.76B	3.24B	2.64B	2.49B
Gross Profit	2.82B	2.54B	2.44B	2.85B	2.67B	1.96B
EBITDA	994.62M	856.63M	737.23M	1.29B	1.31B	683.41M
Net Income	797.08M	614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet
Total Assets	75.07B	73.05B	70.76B	67.64B	75.10B	65.93B
Cash, Cash Equivalents and Short-Term Investments	25.78B	25.02B	24.08B	23.76B	42.84B	33.57B
Total Debt	1.39B	1.31B	1.24B	1.58B	1.34B	1.58B
Total Liabilities	68.95B	67.43B	65.61B	63.54B	69.13B	59.90B
Stockholders Equity	6.12B	5.61B	5.15B	4.09B	5.97B	6.03B
Cash Flow
Free Cash Flow	599.05M	461.31M	478.57M	910.75M	931.47M	618.62M
Operating Cash Flow	809.46M	674.72M	686.61M	1.01B	1.01B	678.77M
Investing Cash Flow	-3.26B	-1.63B	-2.61B	5.35B	-10.52B	-13.07B
Financing Cash Flow	2.40B	959.58M	1.88B	-6.32B	9.45B	12.49B

Popular Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.32
• 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 BPOP, the sentiment is Positive. The current price of 126.32 is above the 20-day moving average (MA) of 118.56, above the 50-day MA of 115.73, and above the 200-day MA of 108.91, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 72.59 is Negative, neither overbought nor oversold. The STOCH value of 95.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BPOP.

Popular Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONB	80 Outperform	$9.12B	13.73	8.26%	2.41%	20.72%	3.63%
CFR	77 Outperform	$8.25B	13.28	14.68%	3.05%	2.85%	20.57%
BPOP	77 Outperform	$8.33B	11.06	13.05%	2.30%	5.87%	53.36%
ZION	74 Outperform	$8.85B	10.72	12.71%	2.92%	0.12%	27.30%
CBSH	73 Outperform	$7.34B	13.25	15.45%	1.98%	12.63%	14.25%
CMA	71 Outperform	$11.28B	16.89	9.64%	3.20%	-7.07%	31.09%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Popular Corporate Events

Popular Announces Quarterly Dividend for Shareholders

On November 14, 2025, Popular, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.75 per share on its outstanding common stock, payable on January 2, 2026, to shareholders of record as of December 5, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

Popular Reports Q3 2025 Financial Results

Popular, Inc. reported a net income of $211.3 million for the third quarter of 2025, slightly up from $210.4 million in the previous quarter. The company saw growth in net interest income and margin, as well as non-interest income, while managing operating expenses effectively. However, there was an increase in non-performing loans and net charge-offs, primarily due to two large commercial loans. Despite a decrease in deposits, the company maintained a strong capital position, with a Common Equity Tier 1 ratio of 15.79%. Popular continues to focus on its strategic framework aimed at being the top bank for customers, improving efficiency, and delivering sustainable returns.