Popular (BPOP) AI Stock Analysis

• Market Cap: $6.03B
• Dividend Yield: 3.23%
• Average Volume (3M): 745.42K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.08
• Revenue Growth: 13.68%
• EPS Growth: 13.73%
• Country: US
• Employees: 9,231
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 8.56
• Shares Outstanding: 69,338,990
• 10 Day Avg. Volume: 713,975
• 30 Day Avg. Volume: 745,418
• PEG Ratio: 0.74
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.33
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 3.40
• 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: $113.00
• Price Target Upside: 30.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Popular exhibits a stable financial foundation with strong income growth and a robust balance sheet. Key strengths include positive loan growth and shareholder returns. However, challenges such as cash flow management issues and potential deposit outflows impact the score. The technical analysis indicates bearish momentum, and the valuation is reasonable, offering some appeal to investors.

Positive Factors

Deposit Base

Retail deposits are substantially higher compared to pre-pandemic levels, indicating a strong deposit base.

Long-term Outlook

Despite near-term volatility, the long-term view of the company remains attractive.

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

The company's preliminary guidance for net interest income in the upcoming fiscal year is below prior estimates, contributing to the earnings revision.

Holiday Season Uncertainty

The upcoming holiday season introduces uncertainty, potentially leading to additional retail deposit outflows.

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, Inc. generates revenue primarily through the interest income derived from its loan portfolio, which includes consumer, commercial, and mortgage loans. Additionally, the company earns money from non-interest income sources such as service charges on deposit accounts, fees from credit and debit card usage, and commissions from investment and insurance products. Popular also benefits from its extensive branch network and digital banking offerings, which enhance customer access and engagement. Strategic partnerships with financial technology firms and other service providers further contribute to its revenue streams.

Popular Financial Statement Overview

Summary

Popular shows a stable financial position with consistent revenue and profitability margins. The income statement is moderate, with a solid gross profit margin but a slight decline in net profit margin. The balance sheet is robust with low leverage, but cash flow management needs attention due to missing data and free cash flow figures.

Income Statement

Popular's income statement shows a moderate performance with a positive trend in profitability. The gross profit margin is solid at 100%, indicating strong revenue retention. The net profit margin has slightly decreased from the previous year to approximately 22.9%, but remains competitive within the banking sector. Revenue growth is slightly positive at 1.5% compared to the prior year, suggesting stable demand. However, there's a noticeable decrease in EBIT margin from 30% to 39.1%, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a sound financial position with a debt-to-equity ratio of 0.16, indicating low leverage. The equity ratio is stable at 7.7%, though slightly low for the industry, suggesting moderate reliance on external financing. Return on equity stands at 10.9%, pointing to efficient use of equity despite a decline from previous years. The company maintains a healthy level of cash and short-term investments, supporting liquidity.

Cash Flow

Popular's cash flow performance is mixed. The operating cash flow to net income ratio is not calculable due to missing data, which limits insights into cash generation efficiency. Free cash flow growth is unavailable, impacting the ability to assess future investment capacity. However, cash flow management remains a concern as free cash flow is not currently reported, indicating potential operational cash constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.68B	2.64B	2.94B	2.55B	2.32B
	Gross Profit
2.68B	2.57B	2.94B	2.24B	1.99B
	EBIT
1.05B	792.33M	1.59B	1.24B	618.56M
	EBITDA
0.00	741.42M	1.30B	113.95M	87.22M
	Net Income Common Stockholders
614.21M	541.34M	1.10B	934.89M	506.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
419.64M	7.42B	23.76B	42.93B	33.69B
	Total Assets
73.05B	70.76B	67.64B	75.09B	65.93B
	Total Debt
896.29M	1.14B	1.25B	1.06B	1.22B
	Net Debt
476.65M	-6.28B	-4.83B	-16.90B	-10.91B
	Total Liabilities
67.43B	65.61B	63.54B	69.12B	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: Negative
• Last Price: 86.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 86.91 is below the 20-day moving average (MA) of 89.29, below the 50-day MA of 95.07, and below the 200-day MA of 95.01, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 51.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BPOP.

Popular Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZION	73 Outperform	$6.75B	9.23	13.15%	3.98%	7.91%	13.79%
PB	72 Outperform	$6.42B	13.36	6.60%	3.58%	11.96%	11.66%
BOKF	68 Neutral	$5.93B	11.34	9.70%	2.51%	11.17%	1.47%
ONB	67 Neutral	$6.29B	11.71	9.06%	3.12%	16.39%	-13.25%
SNV	67 Neutral	$6.04B	14.13	9.31%	4.00%	0.83%	-11.72%
BPOP	65 Neutral	$6.03B	10.16	11.42%	3.23%	13.68%	13.73%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%

Popular Corporate Events

Popular Announces CEO Transition with Alvarez’s Retirement

Ignacio Alvarez announced his retirement as CEO of Popular, Inc., effective June 30, 2025, after serving since 2017. He will be succeeded by Javier D. Ferrer, who has been with Popular since 2014 and currently serves as President and COO. Alvarez will provide consulting services for six months post-retirement to ensure a smooth transition. The Board of Directors also announced the retirement of John W. Diercksen from the Board, reducing its size from thirteen to eleven members. These leadership changes are expected to maintain Popular’s strategic direction and operational stability, benefiting stakeholders and ensuring continued success.

Popular, Inc. Reports Strong Q4 2024 Financial Results

Popular, Inc. reported a net income of $177.8 million for the fourth quarter of 2024, an increase from $155.3 million in the previous quarter. The company achieved a 10% increase in adjusted net income for the full year 2024 compared to 2023, supported by strong loan growth, increased net interest income, and a robust capital and liquidity position. Popular also repurchased over 2.25 million shares of common stock and raised its quarterly dividend. Credit quality remained stable with a decrease in non-performing loans, while net charge-offs slightly increased. The corporation is optimistic about the improved performance of Puerto Rico’s economy and its franchise’s strength for the upcoming year.