OTCPK:BPOP.P

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


Market Performance


7 Day Return

-0.2%

OTCPK:BPOP.P

-2.6%

US Banks

-1.0%

US Market


1 Year Return

4.6%

OTCPK:BPOP.P

-14.2%

US Banks

-0.4%

US Market

BPOP.P outperformed the Banks industry which returned -14.2% over the past year.

BPOP.P outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

BPOP.PIndustryMarket
7 Day-0.2%-2.6%-1.0%
30 Day1.7%-6.3%-3.3%
90 Dayn/a-3.5%0.8%
1 Year13.2%4.6%-11.8%-14.2%1.9%-0.4%
3 Year35.3%6.1%42.2%32.4%39.4%30.4%
5 Year60.2%6.1%53.3%36.7%54.2%37.1%

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

No news available

Valuation

Is Popular undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Popular's share price is below the future cash flow value, and at a moderate discount (> 20%).

Popular's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Popular is good value based on earnings compared to the US Banks industry average.

Popular is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Popular earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Popular is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Popular's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Popular's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Popular's revenue growth is positive but not above the United States of America market average.

Popular's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Popular's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Popular is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Popular performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Popular's year on year earnings growth rate has been positive over the past 5 years.

Popular's 1-year earnings growth exceeds its 5-year average (103.7% vs 13.7%)

Popular's earnings growth has exceeded the US Banks industry average in the past year (103.7% vs 33.2%).


Return on Equity

Popular has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Popular used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Popular improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Popular has an acceptable proportion of non-loan assets held.

Popular has a low allowance for bad loans.

Popular's liabilities are made up of primarily low risk sources of funding.

Popular's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Popular are broadly funded by customer deposits.

Popular has a high level of bad loans (greater than 2%).


Next Steps

Dividend

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

2.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Popular's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Popular's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Ignacio Alvarez (61yo)

2.1yrs

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

Ignacio's remuneration is lower than average for companies of similar size in United States of America.

Ignacio's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.2yrs

Average Tenure

59yo

Average Age

The average tenure for the Popular management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

57.5yo

Average Age

The tenure for the Popular board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Richard Carrión (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 30.6yrs
    • Compensation: $3.96m
  • Lidio Soriano (50yo)

    Executive VP & Chief Risk Officer of Corporate Risk Management Group

    • Tenure: 8.0yrs
    • Compensation: $1.46m
  • Carlos Vázquez (60yo)

    Executive VP & CFO

    • Tenure: 6.4yrs
    • Compensation: $2.04m
  • Ignacio Alvarez (61yo)

    President

    • Tenure: 2.1yrs
    • Compensation: $4.42m
  • Paul Cardillo

    Investor Relations Officer

    • Tenure: 0.8yrs
  • Carlos Martinez (72yo)

    Executive Vice President

    • Tenure: 17.0yrs
    • Compensation: $1.76m
  • Camille Burckhart (39yo)

    Executive VP and Chief Information & Digital Strategy Officer of Innovation

  • Javier Ferrer-Fernández (58yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: $1.66m
  • Teruca Rullán

    Senior Vice President of Corporate Communications

  • Eduardo Negrón (54yo)

    Executive Vice President of Administration

    • Tenure: 8.7yrs
    • Compensation: $589.13k

Board Members

  • Alejandro Ballester (51yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: $160.00k
  • Richard Carrión (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 26.6yrs
    • Compensation: $3.96m
  • Ignacio Alvarez (61yo)

    President

    • Tenure: 2.1yrs
    • Compensation: $4.42m
  • María Ferré Rangel (55yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: $160.00k
  • Kim Goodwin (60yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $165.00k
  • Myrna Soto (50yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: $125.00k
  • John Diercksen (70yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: $165.00k
  • Carlos Unanue (55yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: $150.00k
  • Joaquín Bacardí (53yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: $150.00k
  • Bill Teuber (67yo)

    Lead Director

    • Tenure: 8.3yrs
    • Compensation: $170.00k

Company Information

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


Key Information

  • Name: Popular, Inc.
  • Ticker: BPOP.P
  • Exchange: OTCPK
  • Founded: 1893
  • Industry: regional banks
  • Sector: banks
  • Market Cap: US$5.081b
  • Shares outstanding: 96.70m
  • Website: Click here

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 Analysis2019/08/18 00:20
End of Day Share Price2019/08/15 00:00
Earnings2019/06/30
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.