Popular (BPOP) AI Stock Analysis

• Market Cap: $8.65B
• Dividend Yield: 2.23%
• Average Volume (3M): 544.72K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.94
• Revenue Growth: 6.27%
• EPS Growth: 45.08%
• Country: US
• Employees: 9,274
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.09
• Shares Outstanding: 67,582,850
• 10 Day Avg. Volume: 566,198
• 30 Day Avg. Volume: 544,719
• 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: 1.00
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $137.11
• Price Target Upside: 7.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: $144.00 ▲(12.46% Upside)

Popular's overall stock score reflects its strong financial performance and positive earnings call highlights. The stock's technical indicators suggest a positive trend, though caution is warranted due to potential overbought conditions. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market presence and effective business strategies, supporting long-term financial stability.

Strong Capital Actions

Strategic capital actions like stock buybacks and dividend increases reflect robust financial health and commitment to shareholder returns.

Improved Credit Quality

Improved credit quality reduces risk and enhances profitability, ensuring long-term stability and trust in financial operations.

Negative Factors

Higher Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially impacting financial performance if not managed effectively.

Seasonal Deposit Decrease

Expected seasonal deposit decreases can affect liquidity and interest income, requiring careful management to maintain stability.

Leadership Change

Leadership changes can introduce uncertainty and require time for strategic adjustments, impacting operational continuity and strategic focus.

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: Positive
• Last Price: 128.04
• 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 128.04 is above the 20-day moving average (MA) of 125.48, above the 50-day MA of 120.14, and above the 200-day MA of 103.17, indicating a bullish trend. The MACD of 2.08 indicates Positive momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.69 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
BPOP	79 Outperform	$8.65B	12.42	12.73%	2.23%	6.27%	45.08%
CFR	77 Outperform	$8.29B	13.88	14.51%	3.03%	4.04%	13.30%
CMA	75 Outperform	$8.92B	13.35	10.57%	4.09%	-8.62%	15.37%
ONB	74 Outperform	$8.68B	13.14	6.99%	2.53%	15.94%	-0.47%
ZION	72 Outperform	$8.49B	10.50	12.80%	3.02%	2.64%	32.07%
CBSH	69 Neutral	$7.99B	14.44	15.37%	1.81%	13.77%	17.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.