Popular (BPOP) AI Stock Analysis

• Market Cap: $7.23B
• Dividend Yield: 2.65%
• Average Volume (3M): 516.30K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.98
• Revenue Growth: 9.33%
• EPS Growth: 43.64%
• Country: US
• Employees: 9,274
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 2.56
• Shares Outstanding: 68,510,770
• 10 Day Avg. Volume: 569,487
• 30 Day Avg. Volume: 516,298
• PEG Ratio: 0.63
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.19
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 1.05
• 1Y Price Target: $116.86
• Price Target Upside: 12.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $118.00 ▲(13.67%Upside)

Popular's overall score reflects strong technical momentum and a positive earnings call with improved financial metrics. However, challenges include concerns about cash flow management and potential economic impacts from tariff uncertainties. The reasonable valuation and positive corporate event further support the stock's appeal.

Positive Factors

Deposit Base

Retail deposits are substantially higher compared to pre-pandemic levels, indicating a strong deposit base.

Long-Term Outlook

The longer-term outlook remains attractive, with expectations for net interest income to benefit from the repricing of public funds.

Negative Factors

Deposit Outflows

The company is facing uncertainty due to an accelerated pace of retail deposit outflows and a worse deposit mix.

Earnings Revision

BPOP's NII fell short of our Street-low est and guided down due to a smaller b/s, leading to a 6% EPS miss and likely lower consensus ahead.

Financial Guidance

The company's preliminary guidance for net interest income in the upcoming fiscal year is below prior estimates, contributing to the earnings revision.

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, Inc. generates revenue through various streams, primarily through its banking operations. The company's income is largely derived from interest earned on loans and advances to customers, such as personal loans, mortgages, and commercial loans. Additionally, Popular, Inc. earns non-interest income through fees and commissions from services such as transaction processing, asset management, and investment advisory. The company also benefits from its wealth management services, which contribute to its fee-based income. Popular, Inc.'s strategic partnerships and expansive branch network further bolster its revenue generation capabilities by enhancing customer reach and service offerings.

Popular Financial Statement Overview

Summary

Popular demonstrates stable financial health with consistent revenue and profitability margins. The balance sheet is strong with manageable debt levels, but cash flow management is a concern due to unavailable data on free cash flow.

Income Statement

Popular's income statement shows a moderate performance with a positive trend in profitability. The gross profit margin is solid at 100%, indicating strong revenue retention. The net profit margin has slightly decreased from the previous year to approximately 22.9%, but remains competitive within the banking sector. Revenue growth is slightly positive at 1.5% compared to the prior year, suggesting stable demand. However, there's a noticeable decrease in EBIT margin from 30% to 39.1%, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a sound financial position with a debt-to-equity ratio of 0.16, indicating low leverage. The equity ratio is stable at 7.7%, though slightly low for the industry, suggesting moderate reliance on external financing. Return on equity stands at 10.9%, pointing to efficient use of equity despite a decline from previous years. The company maintains a healthy level of cash and short-term investments, supporting liquidity.

Cash Flow

Popular's cash flow performance is mixed. The operating cash flow to net income ratio is not calculable due to missing data, which limits insights into cash generation efficiency. Free cash flow growth is unavailable, impacting the ability to assess future investment capacity. However, cash flow management remains a concern as free cash flow is not currently reported, indicating potential operational cash constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.19B	3.76B	3.24B	2.64B	2.49B
	Gross Profit
2.54B	2.44B	2.85B	2.67B	1.96B
	EBIT
796.62M	675.54M	1.23B	1.24B	618.56M
	EBITDA
856.63M	737.23M	1.29B	1.31B	683.41M
	Net Income Common Stockholders
614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
419.64M	7.42B	23.76B	25.30B	21.93B
	Total Assets
73.05B	70.76B	67.64B	75.10B	65.93B
	Total Debt
1.25B	1.14B	1.41B	1.24B	1.22B
	Net Debt
-5.55B	-6.28B	-4.83B	-16.73B	-10.73B
	Total Liabilities
67.43B	65.61B	63.54B	69.13B	59.90B
	Stockholders Equity
5.61B	5.15B	4.09B	5.97B	6.03B
Cash Flow		Free Cash Flow
461.31M	478.57M	910.75M	931.47M	618.62M
	Operating Cash Flow
667.67M	686.61M	1.01B	1.01B	678.77M
	Investing Cash Flow
-1.63B	-2.61B	5.35B	-10.52B	-13.07B
	Financing Cash Flow
959.58M	1.88B	-6.32B	9.45B	12.49B

Popular Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 103.81 is below the 20-day moving average (MA) of 104.09, above the 50-day MA of 96.65, and above the 200-day MA of 95.64, indicating a bullish trend. The MACD of 2.12 indicates Positive momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 is Neutral, 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
BOKF	74 Outperform	$6.15B	10.97	10.17%	2.37%	6.58%	26.56%
PB	74 Outperform	$6.67B	13.37	6.83%	3.33%	9.02%	20.88%
SNV	73 Outperform	$6.75B	13.22	10.63%	3.21%	-1.56%	22.50%
ONB	73 Outperform	$7.75B	11.88	9.29%	2.67%	13.68%	-6.57%
ZION	72 Outperform	$7.19B	9.24	13.06%	3.53%	4.84%	28.90%
BPOP	71 Outperform	$7.23B	10.72	12.54%	2.65%	9.33%	43.64%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%

Popular Corporate Events

Popular Approves Key Proposals at Annual Meeting

Popular, Inc. held its Annual Meeting of Shareholders on May 8, 2025, where shareholders voted on three key proposals. The election of eleven directors for a one-year term was approved, along with an advisory vote on executive compensation and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (BPOP) stock is a Buy with a $112.00 price target. To see the full list of analyst forecasts on Popular stock, see the BPOP Stock Forecast page.

Popular Announces Quarterly Cash Dividend Approval

On May 8, 2025, Popular, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.70 per share on its outstanding common stock. This dividend will be payable on July 1, 2025, to shareholders of record at the close of business on May 29, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may positively impact investor confidence and the company’s market position.

Popular Reports Q1 2025 Financial Results

Popular, Inc. reported a net income of $177.5 million for the first quarter of 2025, slightly down from $177.8 million in the previous quarter. The company saw an increase in net interest income and improved credit quality metrics, with decreases in non-performing loans and net charge-offs. Despite a volatile operating environment, Popular, Inc. maintained strong capital and liquidity levels, positioning itself well for various macroeconomic scenarios. The company also repurchased shares as part of its capital actions and experienced growth in loans and deposits, particularly in Puerto Rico.