Banco Bilbao Vizcaya Argentaria (BBVA) AI Stock Analysis

• Market Cap: €91.09B
• Dividend Yield: 4.51%
• Average Volume (3M): 7.64M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.45
• Revenue Growth: 7.39%
• EPS Growth: 16.20%
• Country: ES
• Employees: 124,741
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Diversified
• EPS (TTM): 0.46
• Shares Outstanding: 5,763,285,600
• 10 Day Avg. Volume: 6,069,499
• 30 Day Avg. Volume: 7,641,904
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €16.89
• Price Target Upside: 8.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: €18.50 ▲(19.12% Upside)

Banco Bilbao Vizcaya Argentaria's strong earnings call and financial performance are the most significant factors driving the score. The bank's strategic initiatives and profitability metrics are impressive, despite some technical indicators suggesting caution. Valuation metrics are favorable, adding to the stock's attractiveness.

Banco Bilbao Vizcaya Argentaria Business Overview & Revenue Model

Company Description

Banco Bilbao Vizcaya Argentaria (BBVA) is a multinational financial services company based in Spain. It operates in various sectors, primarily focusing on retail banking, corporate banking, asset management, and investment services. BBVA provides a wide array of products including savings and checking accounts, loans, mortgages, credit cards, insurance, and investment solutions, serving millions of customers across Europe, the Americas, and Asia.

How the Company Makes Money

BBVA generates revenue through several key streams. The primary source is interest income, which it earns from loans provided to individuals and businesses. This includes personal loans, mortgages, and corporate financing. Another significant revenue stream comes from fees and commissions charged for various services, including account maintenance, transaction fees, and advisory services. BBVA also earns income through its investment banking division, which offers services such as mergers and acquisitions, and underwriting. Additionally, the bank engages in wealth management and asset management services, generating fees from managing client assets. Strategic partnerships with fintech companies and other financial institutions enhance its service offerings and customer reach, further contributing to its earnings.

Banco Bilbao Vizcaya Argentaria Financial Statement Overview

Summary

Banco Bilbao Vizcaya Argentaria shows strong financial performance with robust revenue and profit growth. The income statement is particularly strong, with high margins and growth rates. The balance sheet is stable but shows reliance on liabilities, typical for banks. Cash flow metrics indicate some concerns due to reduced growth, but overall cash generation remains moderate.

Income Statement

Banco Bilbao Vizcaya Argentaria exhibits strong financial performance with a substantial increase in total revenue and net income over the years. The TTM gross profit margin stands at 82.64%, indicating efficient cost management. The net profit margin is healthy at 23.70%, showing profitability. The revenue growth rate from 2024 to TTM is 25.52%, reflecting robust growth. EBIT and EBITDA margins are solid at 36.59% and 40.06%, respectively, indicating strong operational efficiency.

Balance Sheet

The bank maintains a strong equity position with a debt-to-equity ratio of 1.96, indicating moderate leverage. The return on equity (ROE) is impressive at 19.15%, showcasing effective utilization of shareholder equity. However, the equity ratio of 7.12% suggests a high reliance on liabilities for funding, which is typical in banking but still a potential risk factor. Overall, the balance sheet shows stability with a focus on equity growth.

Cash Flow

The TTM cash flow analysis indicates a free cash flow growth rate of -85.44%, primarily due to a significant reduction in operating cash flow compared to the previous year. Despite this, the operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency relative to net income. The free cash flow to net income ratio stands at 0.45, reflecting moderate cash generation capabilities. The reduction in free cash flow growth is a concern but is partially offset by positive cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.68B	75.63B	58.19B	40.37B	31.32B	22.27B
Gross Profit	32.45B	33.63B	28.97B	24.68B	19.97B	22.27B
EBITDA	17.83B	16.94B	13.82B	11.60B	8.48B	6.54B
Net Income	10.55B	10.05B	8.02B	6.36B	4.65B	1.30B
Balance Sheet
Total Assets	772.86B	772.40B	775.56B	712.09B	662.88B	733.80B
Cash, Cash Equivalents and Short-Term Investments	119.86B	118.86B	256.84B	225.41B	228.87B	208.37B
Total Debt	107.72B	144.43B	179.11B	114.64B	116.09B	110.80B
Total Liabilities	713.60B	712.39B	720.29B	661.57B	614.13B	683.78B
Stockholders Equity	55.08B	55.65B	51.70B	46.90B	43.91B	44.55B
Cash Flow
Free Cash Flow	4.56B	-20.20B	-2.54B	21.28B	-2.19B	38.23B
Operating Cash Flow	5.99B	-18.19B	-721.00M	23.72B	-1.24B	39.35B
Investing Cash Flow	-25.15B	-53.55B	-1.42B	-3.91B	-1.63B	-37.00M
Financing Cash Flow	-3.21B	-2.57B	-1.84B	-7.56B	-4.35B	-2.07B

Banco Bilbao Vizcaya Argentaria Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:BBVA, the sentiment is Positive. The current price of 15.53 is below the 20-day moving average (MA) of 15.77, above the 50-day MA of 14.11, and above the 200-day MA of 12.02, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:BBVA.

Banco Bilbao Vizcaya Argentaria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBVA	78 Outperform	€91.09B	8.93	18.91%	4.51%	7.39%	16.20%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
0H00	―	€17.21B	9.67	13.27%	―	―	―
BNC	―	£104.57B	9.68	13.10%	0.39%	―	―
0H7O	―	€11.72B	11.48	17.23%	―	―	―
0ILK	―	€61.27B	10.12	16.64%	―	―	―
UNJCF	―	$7.23B	10.65	9.57%	6.20%	―	―

Banco Bilbao Vizcaya Argentaria Corporate Events

BBVA’s Acquisition of Banco Sabadell Approved with Conditions

BBVA has received authorization from the National Commission of Markets and Competition (CNMC) for its acquisition of Banco de Sabadell, forming the second largest financial entity in Spain by credit volume. This merger is contingent upon commitments to maintain financial inclusion, territorial cohesion, and credit access for SMEs and freelancers, including maintaining office operations in underserved areas and offering favorable commercial conditions.