Popular (BPOP) AI Stock Analysis

• Market Cap: $7.83B
• Dividend Yield: 2.45%
• Average Volume (3M): 551.38K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.00
• Revenue Growth: 9.33%
• EPS Growth: 43.64%
• Country: US
• Employees: 9,274
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 2.56
• Shares Outstanding: 68,510,770
• 10 Day Avg. Volume: 619,433
• 30 Day Avg. Volume: 551,383
• PEG Ratio: 0.79
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.93
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.68
• Enterprise Value/Ebitda: 0.55
• 1Y Price Target: $121.43
• Price Target Upside: 6.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $128.00 ▲(11.99%Upside)

Popular, Inc. exhibits strong financial performance with effective cost management and low leverage. Despite current overbought technical indicators suggesting a potential pullback, the stock's valuation remains attractive. Positive earnings call sentiment and recent dividend announcements further support investor confidence, although non-interest income and economic concerns pose some risk.

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. (BPOP) is a prominent financial services company operating primarily in Puerto Rico and the United States. It provides a wide range of banking and financial solutions, including retail banking, commercial banking, mortgage banking, and wealth management services. Popular, Inc. is the parent company of Banco Popular de Puerto Rico, one of the largest banks in Puerto Rico, and also operates Popular Bank in the mainland United States.

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

Strong profitability and financial stability with consistent revenue growth and effective cost management. Low leverage and effective equity utilization, but improvement needed in equity levels and free cash flow growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.20B	4.19B	3.76B	3.24B	2.64B	2.49B
Gross Profit	2.59B	2.54B	2.44B	2.85B	2.67B	1.96B
EBITDA	917.07M	856.63M	737.23M	1.29B	1.31B	683.41M
Net Income	688.43M	614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet
Total Assets	74.04B	73.05B	70.76B	67.64B	75.10B	65.93B
Cash, Cash Equivalents and Short-Term Investments	26.04B	25.02B	24.08B	23.76B	42.84B	33.57B
Total Debt	1.22B	1.31B	1.24B	1.58B	1.34B	1.58B
Total Liabilities	68.24B	67.43B	65.61B	63.54B	69.13B	59.90B
Stockholders Equity	5.80B	5.61B	5.15B	4.09B	5.97B	6.03B
Cash Flow
Free Cash Flow	474.17M	461.31M	478.57M	910.75M	931.47M	618.62M
Operating Cash Flow	685.22M	674.72M	686.61M	1.01B	1.01B	678.77M
Investing Cash Flow	-2.16B	-1.63B	-2.61B	5.35B	-10.52B	-13.07B
Financing Cash Flow	1.54B	959.58M	1.88B	-6.32B	9.45B	12.49B

Popular Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.30
• 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 114.3 is above the 20-day moving average (MA) of 107.37, above the 50-day MA of 103.35, and above the 200-day MA of 96.47, indicating a bullish trend. The MACD of 2.89 indicates Negative momentum. The RSI at 77.49 is Negative, neither overbought nor oversold. The STOCH value of 93.43 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
BOKF	77 Outperform	$6.62B	11.81	10.17%	2.21%	6.58%	26.56%
ZION	76 Outperform	$8.19B	10.81	13.06%	3.10%	4.84%	28.90%
ONB	75 Outperform	$8.42B	13.24	9.29%	2.46%	13.68%	-6.57%
PB	74 Outperform	$7.04B	14.11	6.83%	3.14%	9.02%	20.88%
BPOP	74 Outperform	$7.83B	11.80	12.54%	2.45%	9.33%	43.64%
SNV	73 Outperform	$7.66B	15.46	10.63%	2.83%	-1.56%	22.50%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%

Popular Corporate Events

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.

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 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.