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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 60.2GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.1%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.24%
Trailing Yield
$2.24
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
27%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, POPULAR, INC. (BPOP) receives a "Hold" rating with a composite score of 58.4/100, ranked #153 out of 4446 stocks. Key factor scores: Quality 60/100, Value 74/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
POPULAR, INC. (BPOP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does POPULAR, INC. Do?
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. POPULAR, INC. (BPOP) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Ignacio Alvarez and employs approximately 8,810 people. With a market capitalization of $8.9B, BPOP is one of the notable companies in the Financials sector.
POPULAR, INC. (BPOP) Stock Rating — Hold (April 2026)
As of April 2026, POPULAR, INC. receives a Hold rating with a composite score of 58.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BPOP ranks #153 out of 4,446 stocks in our coverage universe. Within the Financials sector, POPULAR, INC. ranks #60 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BPOP Stock Price and 52-Week Range
POPULAR, INC. (BPOP) currently trades at $144.82. The stock lost $2.00 (1.4%) in the most recent trading session. The 52-week high for BPOP is $149.31, which means the stock is currently trading -3.0% from its annual peak. The 52-week low is $78.23, putting the stock 85.1% above its annual trough. Recent trading volume was 383K shares, suggesting relatively thin trading activity.
Is BPOP Overvalued or Undervalued? — Valuation Analysis
POPULAR, INC. (BPOP) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.20x, compared to the Financials sector average of 14.88x — a discount of 18%. The price-to-book ratio stands at 1.47x, versus the sector average of 1.22x. The price-to-sales ratio is 3.19x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BPOP trades at 9.94x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, POPULAR, INC. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
POPULAR, INC. Profitability — ROE, Margins, and Quality Score
POPULAR, INC. (BPOP) earns a quality factor score of 60/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.1%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.0% versus the sector average of 1.2%.
On a margin basis, POPULAR, INC. reports gross margins of 0.0%. The operating margin is 161.0% (sector: 21.8%). Net profit margin stands at 128.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 4.9% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BPOP Debt, Balance Sheet, and Financial Health
POPULAR, INC. has a debt-to-equity ratio of 1106.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.09x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1.25B. Cash and equivalents stand at $377M.
BPOP has a beta of 0.85, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for POPULAR, INC. is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
POPULAR, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, POPULAR, INC. reported revenue of $2.89B and earnings per share (EPS) of $12.31. Net income for the quarter was $755M. Gross margin was 0.0%. Operating income came in at $926M.
In FY 2025, POPULAR, INC. reported revenue of $3.78B and earnings per share (EPS) of $12.31. Net income for the quarter was $833M. Revenue grew 28.6% year-over-year compared to FY 2024. Operating income came in at $1.01B.
In Q3 2025, POPULAR, INC. reported revenue of $967M and earnings per share (EPS) of $3.15. Net income for the quarter was $211M. Revenue grew 3.1% year-over-year compared to Q3 2024. Operating income came in at $247M.
In Q2 2025, POPULAR, INC. reported revenue of $944M and earnings per share (EPS) of $3.09. Net income for the quarter was $210M. Revenue grew 2.4% year-over-year compared to Q2 2024. Operating income came in at $258M.
Over the past 8 quarters, POPULAR, INC. has demonstrated a growth trajectory, with revenue expanding from $922M to $2.89B. Investors analyzing BPOP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BPOP Dividend Yield and Income Analysis
POPULAR, INC. (BPOP) currently pays a dividend yield of 2.2%. At this yield, a $10,000 investment in BPOP stock would generate approximately $$224.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning BPOP yields less than the typical sector peer. With a net margin of 128.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
BPOP Momentum and Technical Analysis Profile
POPULAR, INC. (BPOP) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BPOP vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BPOP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BPOP vs S&P 500 (SPY) comparison to assess how POPULAR, INC. stacks up against the broader market across all factor dimensions.
BPOP Next Earnings Date
No upcoming earnings date has been announced for POPULAR, INC. (BPOP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BPOP? — Investment Thesis Summary
POPULAR, INC. presents a balanced picture with arguments on both sides. The quality score of 60/100 indicates above-average profitability and business fundamentals. The value score of 74/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 82/100) reduces downside risk.
In summary, POPULAR, INC. (BPOP) earns a Hold rating with a composite score of 58.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BPOP stock.
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Institutional Research Dossier
POPULAR, INC. (BPOP) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Popular, Inc. (BPOP). While the company exhibits attractive valuation metrics relative to its peers and demonstrates strong profitability, its relatively low investment score and negative free cash flow raise concerns about its long-term growth prospects and capital allocation strategies. The company's significant exposure to the Puerto Rican economy also introduces a degree of macroeconomic risk that warrants caution.
BPOP's impressive operating and net margins, coupled with a lower P/E ratio compared to the sector, suggest undervaluation. However, the negative free cash flow and high debt-to-equity ratio temper our enthusiasm. We believe the current valuation fairly reflects the balance between its profitability and its growth challenges, justifying the Hold rating. Investors should closely monitor the company's ability to improve its free cash flow generation and manage its debt levels in the coming quarters.
Business Strategy & Overview
Popular, Inc. operates as a diversified financial services provider, primarily serving the Puerto Rican market, with a growing presence in the United States and the British Virgin Islands. The company's core business revolves around traditional banking activities, including deposit-taking and lending. It offers a comprehensive suite of products, ranging from savings and checking accounts to commercial, residential, and consumer loans. A significant portion of its revenue is derived from net interest income, the difference between interest earned on loans and interest paid on deposits.
Beyond traditional banking, Popular, Inc. diversifies its revenue streams through investment banking, auto and equipment leasing, broker-dealer services, and insurance offerings. This diversification strategy aims to mitigate risks associated with fluctuations in interest rates and economic cycles. The company's extensive branch network and ATM infrastructure in Puerto Rico provide a competitive advantage, fostering customer loyalty and facilitating efficient service delivery. Its digital banking platform is also a key component of its strategy, catering to the evolving preferences of tech-savvy customers.
Popular's strategic positioning is heavily influenced by the economic conditions in Puerto Rico. The company has demonstrated resilience in navigating the island's economic challenges, including periods of recession and natural disasters. Its ability to manage credit risk and maintain profitability in this environment is a testament to its operational expertise. However, the company's growth prospects are intrinsically linked to the recovery and expansion of the Puerto Rican economy.
The company's recent financial performance indicates a focus on improving efficiency and profitability. The substantial increase in operating margin in Q1 FY2025, although potentially an outlier, suggests successful cost management initiatives. However, the negative free cash flow raises questions about the sustainability of these improvements. Popular's strategic priorities include expanding its presence in the U.S. market, enhancing its digital capabilities, and optimizing its capital structure.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
4.9%
Sector: 9.4%
-48% VS SCTR
Economic Moat Analysis
Popular, Inc.'s economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not strong enough to warrant a Wide moat rating. The primary source of its moat stems from its established presence and brand recognition in the Puerto Rican market. Decades of operation have fostered customer loyalty and created a degree of inertia, making it challenging for new entrants to gain significant market share.
The company's extensive branch network and ATM infrastructure in Puerto Rico also contribute to its competitive advantage. This physical presence provides convenience and accessibility for customers, particularly in a market where digital adoption may lag behind more developed economies. However, the increasing prevalence of online and mobile banking could erode this advantage over time.
Switching costs for banking customers are generally moderate. While there is some inconvenience associated with changing banks, it is not a prohibitive barrier. Customers can easily transfer funds and establish new accounts, reducing the stickiness of existing relationships. Therefore, switching costs do not represent a significant source of economic moat for Popular, Inc.
The banking industry is subject to stringent regulatory oversight, which can create barriers to entry for new players. However, these regulations also apply to existing institutions, leveling the playing field to some extent. While regulatory compliance is essential, it does not necessarily translate into a sustainable competitive advantage for Popular, Inc.
Overall, Popular, Inc.'s narrow moat is primarily based on its established presence in the Puerto Rican market and its physical infrastructure. However, the increasing competition from online banks and the moderate switching costs for customers limit the strength of its moat. The company needs to continuously innovate and adapt to maintain its competitive position.
Financial Health & Profitability
Popular, Inc. demonstrates a mixed financial profile. The company's profitability metrics, such as ROE (12.1%) and net margin (128.8%), significantly exceed the sector averages, indicating efficient operations and effective cost management. The operating margin of 161.0% is also substantially higher than the sector average of 22.0%, suggesting a strong ability to generate profits from its core business activities. However, these figures should be viewed with caution, as the Q1 FY2025 operating margin of 569.9% appears to be an anomaly and may not be sustainable.
Revenue growth has been moderate, with a TTM revenue growth of 4.9%, lagging behind the sector average of 9.3%. This suggests that the company is not experiencing rapid expansion and may be facing challenges in increasing its market share. The quarterly revenue figures show some volatility, with fluctuations in revenue from quarter to quarter. The recent FY2025 revenue of $3.78B is a significant increase from FY2024's $2.94B, indicating a positive trend.
A significant concern is the company's negative free cash flow of $-386.91M. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This could put pressure on the company's liquidity and financial flexibility. The company's total cash of $377.08M provides some buffer, but the negative free cash flow needs to be addressed.
The company's debt-to-equity ratio of 1,106.00 is extremely high compared to the sector average of 115.00. This indicates a high level of financial leverage, which increases the company's financial risk. The company's ability to service its debt obligations will depend on its ability to generate sufficient cash flow. The current ratio of 1.09 suggests that the company has enough current assets to cover its current liabilities, but this ratio is relatively low and could be a cause for concern.
Overall, Popular, Inc. exhibits strong profitability but faces challenges related to revenue growth, free cash flow generation, and financial leverage. The company needs to improve its cash flow management and reduce its debt levels to strengthen its financial health.
Valuation Assessment
Popular, Inc.'s valuation presents a compelling case for potential undervaluation based on several key metrics. The company's P/E ratio of 10.6x is significantly lower than the sector average of 15.5x, suggesting that the market may be undervaluing its earnings potential. Similarly, the EV/EBITDA ratio of 2.1x is substantially lower than the sector average of 3.5x, further reinforcing the notion that the company is trading at a discount to its peers.
However, it's crucial to consider the context behind these valuation metrics. The lower multiples could reflect concerns about the company's growth prospects, its exposure to the Puerto Rican economy, or its high debt levels. While the company's ROE of 12.1% exceeds the sector average of 8.5%, indicating superior profitability, the market may be discounting this due to other factors.
The negative free cash flow is a significant factor that could be weighing on the company's valuation. Investors typically place a premium on companies that generate positive free cash flow, as it provides them with greater financial flexibility and the ability to invest in growth opportunities. The lack of free cash flow could be a deterrent for some investors, leading to a lower valuation.
Considering the company's strong profitability, moderate revenue growth, negative free cash flow, and high debt levels, we believe that the current valuation is fair. The lower P/E and EV/EBITDA multiples reflect the risks associated with the company's financial profile, while the higher ROE partially offsets these concerns. The market appears to be appropriately pricing in the balance between the company's strengths and weaknesses.
A significant improvement in free cash flow generation or a reduction in debt levels could lead to a re-rating of the stock and a higher valuation. However, until these issues are addressed, we believe that the current valuation is justified.
Risk & Uncertainty
Popular, Inc. faces several specific risks that could impact its financial performance and valuation. A primary risk is its significant exposure to the Puerto Rican economy. The island's economic volatility, including periods of recession, natural disasters, and fiscal challenges, can directly affect the company's loan portfolio, deposit base, and overall profitability. A prolonged economic downturn in Puerto Rico could lead to increased loan defaults and reduced demand for banking services.
Competition in the banking industry is intense, with both traditional banks and emerging fintech companies vying for market share. Popular, Inc. faces competition from larger national and international banks, as well as smaller regional players. The increasing adoption of online and mobile banking could intensify competition, as customers have more options and lower switching costs. Failure to adapt to changing customer preferences and technological advancements could erode the company's competitive position.
Regulatory changes and compliance costs represent another significant risk. The banking industry is subject to extensive regulations, and changes in these regulations can impact the company's operations and profitability. Increased regulatory scrutiny or stricter capital requirements could increase compliance costs and limit the company's ability to lend and generate profits.
The company's high debt-to-equity ratio poses a financial risk. High leverage increases the company's vulnerability to economic downturns and interest rate fluctuations. A rise in interest rates could increase the company's borrowing costs and reduce its profitability. The company's ability to service its debt obligations will depend on its ability to generate sufficient cash flow.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPopular's strong presence in Puerto Rico gives it a competitive edge, allowing it to capitalize on the island's eventual economic recovery and benefit from increased banking activity.
BULL VIEWThe company's low valuation multiples, such as P/E and EV/EBITDA, suggest that the stock is undervalued and offers significant upside potential as the market recognizes its profitability.
BULL VIEWBPOP's high ROE demonstrates efficient capital allocation and superior profitability compared to its peers, indicating a well-managed and financially sound institution.
The Bear Case
BEAR VIEWPopular's heavy reliance on the Puerto Rican economy exposes it to significant macroeconomic risks, making it vulnerable to economic downturns and natural disasters that could impair its loan portfolio.
BEAR VIEWThe company's negative free cash flow raises concerns about its financial sustainability and ability to fund future growth initiatives, potentially hindering its long-term prospects.
BEAR VIEWBPOP's high debt-to-equity ratio increases its financial risk and vulnerability to interest rate hikes, potentially impacting its profitability and ability to meet its debt obligations.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BPOP and 4,400+ other equities.
POPULAR, INC. exhibits a 115% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
161.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
128.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-10%
Income Projection audit
A $10,000 investment would generate approximately $224 annually in dividends at the current trailing rate.
