Popular (BPOP) AI Stock Analysis

• Market Cap: $8.47B
• Dividend Yield: 2.17%
• Average Volume (3M): 479.62K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.97
• Revenue Growth: 6.27%
• EPS Growth: 45.08%
• Country: US
• Employees: 9,274
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 3.09
• Shares Outstanding: 67,582,850
• 10 Day Avg. Volume: 644,301
• 30 Day Avg. Volume: 479,618
• 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: 1.02
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.34
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $135.00
• Price Target Upside: 7.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $136.00 ▲(8.50% Upside)

Popular, Inc. receives a strong overall score due to its robust financial performance and positive earnings call highlights, including significant loan and deposit growth and strategic capital actions. Technical indicators also support a bullish outlook. While valuation metrics are reasonable, there is room for improvement in equity levels and free cash flow growth.

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 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 demonstrates strong profitability and financial stability, with consistent revenue growth and effective cost management. The balance sheet reflects a low leverage environment and effective equity utilization. However, the company should focus on improving equity levels and enhancing free cash flow growth to ensure sustained financial health.

Income Statement

Popular has shown solid revenue growth with a TTM (Trailing-Twelve-Months) revenue of $4.20 billion, marking a 0.18% increase from 2024 to 2025. The gross profit margin stands at 61.7%, indicating good cost management, while the net profit margin improved to 16.4%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 20.5% and 21.9%, respectively, reflecting operational efficiency. However, revenue growth from 2023 to 2024 was modest at 11.48%, needing attention for long-term growth.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.21, indicating low leverage. The return on equity (ROE) is strong at 11.87%, showcasing effective utilization of equity. The equity ratio is 7.8%, slightly low, suggesting reliance on liabilities. Overall, the balance sheet reflects a stable financial position with manageable debt levels, though equity levels could be improved.

Cash Flow

Popular's operating cash flow to net income ratio is 0.99, indicating strong cash generation capability relative to net income. Free cash flow to net income ratio is 0.69, showcasing adequate free cash flow generation. However, the free cash flow growth rate is 2.79%, which is modest, indicating room for improvement in cash flow management.

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
EBITDA	856.63M	737.23M	1.29B	1.31B	683.41M
Net Income	614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet
Total Assets	73.05B	70.76B	67.64B	75.10B	65.93B
Cash, Cash Equivalents and Short-Term Investments	25.02B	24.08B	23.76B	42.84B	33.57B
Total Debt	1.31B	1.24B	1.58B	1.34B	1.58B
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	674.72M	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: 125.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 125.34 is above the 20-day moving average (MA) of 121.31, above the 50-day MA of 116.84, and above the 200-day MA of 101.55, indicating a bullish trend. The MACD of 3.07 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 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
BPOP	78 Outperform	$8.47B	12.16	12.73%	2.17%	6.27%	45.08%
ONB	78 Outperform	$8.94B	13.55	8.00%	2.45%	15.94%	-0.47%
CMA	77 Outperform	$9.07B	13.58	11.07%	4.12%	-8.62%	15.37%
CFR	75 Outperform	$8.38B	14.02	15.34%	3.04%	4.04%	13.30%
ZION	74 Outperform	$8.58B	10.60	13.23%	3.08%	2.64%	32.07%
CBSH	72 Outperform	$8.08B	14.62	16.31%	1.79%	13.77%	17.71%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%

Popular Corporate Events

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.

Popular Reports Strong Q2 2025 Financial Results

Popular, Inc. reported strong financial results for the second quarter of 2025, with a net income of $210.4 million, up from $177.5 million in the first quarter. The company saw improvements across various financial metrics, including net interest income, net interest margin, and credit quality. Additionally, Popular announced an increase in its quarterly dividend and a new stock repurchase program, reflecting its robust capital position and commitment to shareholder value.

Popular Announces Dividend Increase and Stock Buyback

On July 16, 2025, Popular, Inc. announced plans to increase its quarterly common stock dividend from $0.70 to $0.75 per share, starting in the fourth quarter of 2025, pending board approval. Additionally, the company unveiled a new $500 million common stock repurchase program, supplementing the existing 2024 Repurchase Program. These capital actions underscore Popular’s strong capital position and its commitment to delivering sustainable returns to shareholders while continuing to invest in its franchise and support its clients and communities.

Popular Appoints Javier Ferrer as New CEO

On June 27, 2025, Popular, Inc. announced the appointment of Javier D. Ferrer as President and Chief Executive Officer, effective July 1, 2025. Mr. Ferrer, who has been with the company since May 2024, will also lead its subsidiaries, overseeing strategic planning and business operations across various regions. This leadership change is part of the company’s ongoing strategic initiatives, with Mr. Ferrer having no special arrangements or family ties influencing his selection. The announcement reflects Popular’s commitment to maintaining robust leadership and continuity in its operations.