NasdaqGS:BPOP

Stock Analysis Report

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Executive Summary

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Popular's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BPOP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BPOP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

BPOP

-2.7%

US Banks

0.6%

US Market


1 Year Return

-8.8%

BPOP

-16.6%

US Banks

22.7%

US Market

Return vs Industry: BPOP exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: BPOP underperformed the US Market which returned 21% over the past year.


Shareholder returns

BPOPIndustryMarket
7 Day-4.3%-2.7%0.6%
30 Day18.0%20.9%13.1%
90 Day33.2%17.0%4.5%
1 Year-5.1%-8.8%-13.6%-16.6%25.5%22.7%
3 Year53.2%41.8%-6.0%-13.8%49.0%39.1%
5 Year102.4%78.3%38.8%21.5%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Popular's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Popular undervalued compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BPOP ($49.78) is trading below our estimate of fair value ($84.13)

Significantly Below Fair Value: BPOP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BPOP is good value based on its PE Ratio (9x) compared to the US Banks industry average (11.3x).

PE vs Market: BPOP is good value based on its PE Ratio (9x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: BPOP is poor value based on its PEG Ratio (40.6x)


Price to Book Ratio

PB vs Industry: BPOP is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is Popular forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPOP's forecast earnings growth (0.2% per year) is below the savings rate (2.2%).

Earnings vs Market: BPOP's earnings (0.2% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: BPOP's earnings are forecast to grow, but not significantly.

Revenue vs Market: BPOP's revenue (2.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: BPOP's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPOP's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Popular performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPOP has high quality earnings.

Growing Profit Margin: BPOP's current net profit margins (24.1%) are lower than last year (26.4%).


Past Earnings Growth Analysis

Earnings Trend: BPOP's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: BPOP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BPOP had negative earnings growth (-18.6%) over the past year, making it difficult to compare to the Banks industry average (-4.1%).


Return on Equity

High ROE: BPOP's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Popular's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BPOP's Assets to Equity ratio (11.1x) is moderate.

Allowance for Bad Loans: BPOP has a sufficient allowance for bad loans (125%).

Low Risk Liabilities: 93% of BPOP's liabilities are made up of primarily low risk sources of funding.

Loan Level: BPOP has an appropriate level of Loans to Assets ratio (43%).

Low Risk Deposits: BPOP's Loans to Deposits ratio (51%) is appropriate.

Level of Bad Loans: BPOP has a high level of bad loans (2.5%).


Next Steps

Dividend

What is Popular current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BPOP's dividend (3.21%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: BPOP's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BPOP has been paying a dividend for less than 10 years.

Growing Dividend: BPOP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27%), BPOP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BPOP's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Ignacio Alvarez (62 yo)

3.33yrs

Tenure

US$5,135,399

Compensation

Mr. Ignacio Alvarez, Esq., has been the President of Popular, Inc., since October 1, 2014 and as its Chief Executive Officer and Director since July 1, 2017. Mr. Alvarez has been the President and Chief Ex...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD5.14M) is about average for companies of similar size in the US market ($USD5.20M).

Compensation vs Earnings: Ignacio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ignacio Alvarez
President3.33yrsUS$5.14m0.20%
$ 8.4m
Carlos Vázquez
Executive VP & CFO7.67yrsUS$2.29m0.14%
$ 5.9m
Javier Ferrer-Fernández
Chief Legal Officer6.08yrsUS$1.81m0.054%
$ 2.2m
Lidio Soriano
Executive VP & Chief Risk Officer of Corporate Risk Management Group9.25yrsUS$1.56m0.092%
$ 3.9m
Camille Burckhart
Executive VP and Chief Information & Digital Strategy Officer of Innovationno datano data0.038%
$ 1.6m
Jorge García
Principal Accounting Officerno datano data0.013%
$ 547.7k
Eduardo Negrón
Executive Vice President of Administration Group9.92yrsUS$401.13k0.042%
$ 1.8m
Paul Cardillo
Investor Relations Officer2yrsno datano data
Teruca Rullán
Senior Vice President of Corporate Communicationsno datano datano data
Beatriz Armas
Executive VP & Chief Security Officer of Corporate Security Group2.58yrsno data0.023%
$ 982.2k
Humberto Martin
Executive Vice Presidentno dataUS$378.57kno data

6.1yrs

Average Tenure

57yo

Average Age

Experienced Management: BPOP's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ignacio Alvarez
President3.33yrsUS$5.14m0.20%
$ 8.4m
Richard Carrión
Non-Executive Chairman of the Board27.83yrsUS$4.57m0.26%
$ 11.0m
C. Goodwin
Independent Director9.58yrsUS$221.36k0.058%
$ 2.4m
John Diercksen
Independent Lead Director1.83yrsUS$222.33k0.027%
$ 1.1m
María Ferré Rangel
Independent Director16.58yrsUS$216.36k0.043%
$ 1.8m
Alejandro Ballester
Independent Director10.83yrsUS$216.36k0.068%
$ 2.8m
Carlos Unanue
Independent Director10.83yrsUS$202.12k0.15%
$ 6.4m
Robert Carrady
Independent Director1.83yrsUS$253.90k0.0069%
$ 291.5k
Joaquín Bacardí
Independent Director7.58yrsUS$201.36k0.036%
$ 1.5m
Myrna Soto
Independent Director2.33yrsUS$202.12k0.0035%
$ 146.0k

8.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BPOP's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Popular, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Popular, Inc.
  • Ticker: BPOP
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.194b
  • Shares outstanding: 84.25m
  • Website: https://www.popular.com

Number of Employees


Location

  • Popular, Inc.
  • 209 Muñoz Rivera Avenue
  • Hato Rey
  • Puerto Rico
  • 918
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BPOPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
BPOP.OOTCPK (Pink Sheets LLC)6.375 PFD A 2003USUSDFeb 2003

Biography

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services. The company accepts various deposit products. It also offers commercial and industr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:21
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.