Popular (BPOP) AI Stock Analysis

• Market Cap: $7.55B
• Dividend Yield: 2.49%
• Average Volume (3M): 565.06K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.96
• 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: 66,959,870
• 10 Day Avg. Volume: 582,142
• 30 Day Avg. Volume: 565,060
• 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: 1.25
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $142.83
• Price Target Upside: 24.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $125.00 ▲(9.13% Upside)

Popular's overall stock score reflects a strong financial foundation with robust growth and profitability. However, technical indicators point to bearish momentum, and the earnings call revealed challenges related to credit metrics and increased provisions for credit losses. The valuation suggests the stock may be undervalued, providing potential upside if operational challenges are managed effectively.

Positive Factors

Strong Financial Health

Popular's robust financial health, with strong cash flow and low leverage, supports its ability to invest in growth and withstand economic fluctuations.

Loan Growth

Significant loan growth, particularly in commercial and construction lending, enhances Popular's revenue base and strengthens its market position.

Digital Banking Initiatives

Advancements in digital banking enhance customer experience and operational efficiency, positioning Popular for long-term competitiveness in financial services.

Negative Factors

Impact of Large Commercial Loans

The impact of large commercial loans on credit metrics poses a risk to Popular's financial stability, potentially affecting future lending capacity and profitability.

Increased Provision for Credit Losses

Rising provisions for credit losses indicate potential challenges in loan quality, which could pressure profitability and necessitate more conservative lending practices.

Nonperforming Loan Ratio Increase

An increase in nonperforming loans suggests deteriorating asset quality, which could strain Popular's financial resources and impact its ability to generate consistent returns.

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 primarily through interest income from loans, including personal, commercial, and mortgage loans. The bank collects interest on the loans it disburses, which constitutes a significant portion of its earnings. Additionally, Popular earns non-interest income from service fees, transaction fees, and asset management services. The company also benefits from its investment activities and trading services. Strategic partnerships with other financial institutions and companies enhance its product offerings and customer reach, contributing to its overall profitability. Furthermore, the bank's focus on expanding its digital banking capabilities and improving customer experience helps attract and retain clients, thus bolstering its revenue streams.

Popular Financial Statement Overview

Summary

Popular exhibits strong financial health with consistent revenue growth, a solid capital structure, and robust cash flow generation. The income statement reflects strong growth and profitability, while the balance sheet shows low leverage and effective equity use. Cash flow supports future growth and stability.

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	4.26B	4.19B	3.76B	3.24B	2.64B	2.49B
Gross Profit	2.69B	2.54B	2.44B	2.85B	2.67B	1.96B
EBITDA	940.91M	856.63M	737.23M	1.29B	1.31B	683.41M
Net Income	721.08M	614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet
Total Assets	76.07B	73.05B	70.76B	67.64B	75.10B	65.93B
Cash, Cash Equivalents and Short-Term Investments	27.20B	25.02B	24.08B	23.76B	42.84B	33.57B
Total Debt	1.54B	1.31B	1.24B	1.58B	1.34B	1.58B
Total Liabilities	70.11B	67.43B	65.61B	63.54B	69.13B	59.90B
Stockholders Equity	5.95B	5.61B	5.15B	4.09B	5.97B	6.03B
Cash Flow
Free Cash Flow	633.51M	461.31M	478.57M	910.75M	931.47M	618.62M
Operating Cash Flow	847.71M	674.72M	686.61M	1.01B	1.01B	678.77M
Investing Cash Flow	-2.21B	-1.63B	-2.61B	5.35B	-10.52B	-13.07B
Financing Cash Flow	1.41B	959.58M	1.88B	-6.32B	9.45B	12.49B

Popular Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 114.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BPOP, the sentiment is Neutral. The current price of 114.54 is below the 20-day moving average (MA) of 114.74, below the 50-day MA of 121.10, and above the 200-day MA of 106.84, indicating a neutral trend. The MACD of -2.51 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BPOP.

Popular Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	76 Outperform	$7.91B	12.73	14.68%	3.21%	2.85%	20.57%
CMA	73 Outperform	$9.99B	14.96	9.64%	3.73%	-7.07%	31.09%
BPOP	70 Outperform	$7.55B	9.98	13.05%	2.49%	5.87%	53.36%
ONB	70 Outperform	$8.05B	12.10	8.26%	2.72%	20.72%	3.63%
ZION	70 Outperform	$7.57B	9.17	12.71%	3.36%	0.12%	27.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBSH	63 Neutral	$7.16B	12.81	15.48%	2.06%	13.07%	14.27%

Popular Corporate Events

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.

The most recent analyst rating on (BPOP) stock is a Buy with a $136.00 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 August 22, 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 October 1, 2025, to shareholders of record as of September 12, 2025. This decision reflects Popular’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position as a leading financial institution in Puerto Rico and among the top U.S. bank holding companies.

The most recent analyst rating on (BPOP) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Popular stock, see the BPOP Stock Forecast page.

Popular Inc. Reports Strong Q2 2025 Earnings

Popular, Inc. is a leading financial institution based in Puerto Rico, offering a wide range of banking services including retail, mortgage, and commercial banking across Puerto Rico, the U.S., and the British Virgin Islands. The company also provides auto and equipment leasing and financing, as well as broker-dealer and insurance services.

Popular Inc. Earnings Call Highlights Strong Growth

The recent earnings call for Popular Inc. painted a largely positive picture, highlighting the company’s robust financial performance, marked loan growth, and improved credit quality. Despite some concerns over rising operating expenses and anticipated deposit seasonality effects, the overall sentiment was optimistic, with the positive aspects significantly outweighing the challenges.