NasdaqGS:BPOP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

BPOP

1.1%

US Banks

0.3%

US Market


1 Year Return

1.6%

BPOP

10.6%

US Banks

12.5%

US Market

Return vs Industry: BPOP underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: BPOP underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

BPOPIndustryMarket
7 Day-1.6%1.1%0.3%
30 Day2.2%9.8%4.1%
90 Day3.8%15.5%5.6%
1 Year3.8%1.6%13.9%10.6%15.0%12.5%
3 Year44.6%35.2%40.6%30.7%49.1%39.4%
5 Year93.2%76.3%73.9%54.7%62.8%44.7%

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?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BPOP ($55.63) is trading below our estimate of fair value ($105.66)

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 Banks industry average (12.7x).

PE vs Market: BPOP is good value based on its PE Ratio (9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BPOP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BPOP is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Popular forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPOP's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: BPOP's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: BPOP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BPOP's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BPOP's revenue (2.2% 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 (10.3%).


Next Steps

Past Performance

How has Popular performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPOP has a high level of non-cash earnings.

Growing Profit Margin: BPOP's current net profit margins (26.5%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: BPOP has become profitable over the past 5 years, growing earnings by 12.8% per year.

Accelerating Growth: BPOP's earnings growth over the past year (49.6%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: BPOP earnings growth over the past year (49.6%) exceeded the Banks industry 27.7%.


Return on Equity

High ROE: BPOP's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: BPOP has a low level of unsold assets or inventory.

Debt Coverage by Assets: BPOP's debt is covered by short term assets (assets are 4.2x debt).


Financial Institutions Analysis

Asset Level: BPOP's level of assets compared to its equity is low.

Allowance for Bad Loans: BPOP has a low allowance for bad loans.

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

Loan Level: BPOP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BPOP's loans are broadly funded by customer deposits.

Level of Bad Loans: BPOP has a high level of bad loans (2.04%)


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: BPOP's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: BPOP's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: BPOP's dividend payments have been volatile in the past 10 years.

Growing Dividend: BPOP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), 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 (20.2% payout ratio).


Next Steps

Management

What is the CEO of Popular's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Ignacio Alvarez (61yo)

2.3yrs

Tenure

US$4,417,563

Compensation

Mr. Ignacio Álvarez, Esq., has been the President of Popular, Inc. (the “Bank”) since October 1, 2014 and as its Chief Executive Officer and Director since July 1, 2017. Mr. Álvarez has been the President  ...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD4.42M) is below average for companies of similar size in the US market ($USD6.77M).

Compensation vs Earnings: Ignacio's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.5yrs

Average Tenure

57yo

Average Age

Experienced Management: BPOP's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

57.5yo

Average Age

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


Insider Trading

Insider Buying: BPOP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$736,85607 Nov 19
Eduardo Negrón
EntityIndividual
Role
Chief Administrative Officer
Executive Vice President of Administration
Shares12,999.7
Max PriceUS$56.89
SellUS$515,24206 Nov 19
Luis A. Ferre Foundation, Inc., Endowment Arm
EntityCompany
Shares9,100
Max PriceUS$56.62
SellUS$96,63005 Nov 19
Luis Cestero
EntityIndividual
Shares1,728
Max PriceUS$55.92
SellUS$385,00004 Nov 19
Joaquín Bacardí
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$55.00
SellUS$221,92001 Mar 19
Carlos Vázquez
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares4,000
Max PriceUS$55.48
SellUS$171,88922 Feb 19
María Ferré Rangel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,046
Max PriceUS$56.43
SellUS$216,51206 Feb 19
Gilberto Monzon
EntityIndividual
Shares4,000
Max PriceUS$54.13
SellUS$278,00001 Feb 19
Eli Sepúlveda
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares5,000
Max PriceUS$55.60

Ownership Breakdown

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


Management Team

  • Richard Carrión (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 26.8yrs
    • Compensation: US$3.96m
  • Carlos Vázquez (60yo)

    Executive VP & CFO

    • Tenure: 6.7yrs
    • Compensation: US$2.04m
  • Lidio Soriano (50yo)

    Executive VP & Chief Risk Officer of Corporate Risk Management Group

    • Tenure: 8.3yrs
    • Compensation: US$1.46m
  • Teruca Rullán

    Senior Vice President of Corporate Communications

    • Tenure: 0yrs
  • Eduardo Negrón (54yo)

    Executive Vice President of Administration

    • Tenure: 8.9yrs
    • Compensation: US$401.13k
  • Javier Ferrer-Fernández (58yo)

    Executive VP

    • Tenure: 5.1yrs
    • Compensation: US$1.66m
  • Ignacio Alvarez (61yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$4.42m
  • Eli Sepúlveda (56yo)

    Executive Vice President

    • Tenure: 9.8yrs
    • Compensation: US$1.25m
  • Camille Burckhart (39yo)

    Executive VP and Chief Information & Digital Strategy Officer of Innovation

    • Tenure: 0yrs
  • Paul Cardillo

    Investor Relations Officer

    • Tenure: 1yrs

Board Members

  • Bill Teuber (67yo)

    Lead Director

    • Tenure: 8.6yrs
    • Compensation: US$170.00k
  • Richard Carrión (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 26.8yrs
    • Compensation: US$3.96m
  • Kim Goodwin (60yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$165.00k
  • John Diercksen (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$165.00k
  • María Ferré Rangel (55yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$160.00k
  • Ignacio Alvarez (61yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$4.42m
  • Alejandro Ballester (51yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$160.00k
  • Carlos Unanue (55yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$150.00k
  • Joaquín Bacardí (53yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$150.00k
  • Myrna Soto (50yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$125.00k

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$5.382b
  • Shares outstanding: 96.74m
  • 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
BPOP.POTCPK (Pink Sheets LLC)PFD B 8.25%USUSDMay 2008

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 Analysis2019/11/11 23:41
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.