Popular, Inc. Fundamental Analysis
Popular, Inc. (BPOP) shows strong financial fundamentals with a PE ratio of 11.03, profit margin of 20.43%, and ROE of 14.64%. The company generates $4.4B in annual revenue with moderate year-over-year growth of 5.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BPOP's fundamental strength across five key dimensions:
Efficiency Score
WeakBPOP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBPOP trades at attractive valuation levels.
Growth Score
ExcellentBPOP delivers strong and consistent growth momentum.
Financial Health Score
ModerateBPOP shows balanced financial health with some risks.
Profitability Score
ModerateBPOP maintains healthy but balanced margins.
Key Financial Metrics
Is BPOP Expensive or Cheap?
P/E Ratio
BPOP trades at 11.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BPOP's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Popular, Inc. at 1.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.17 times EBITDA. This is generally considered low.
How Well Does BPOP Make Money?
Net Profit Margin
For every $100 in sales, Popular, Inc. keeps $20.43 as profit after all expenses.
Operating Margin
Core operations generate 24.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.64 in profit for every $100 of shareholder equity.
ROA
Popular, Inc. generates $1.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Popular, Inc. produces operating cash flow of $892.99M, showing steady but balanced cash generation.
Free Cash Flow
Popular, Inc. generates strong free cash flow of $711.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.02 in free cash annually.
FCF Yield
BPOP converts 7.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BPOP Stacks Against Its Sector Peers
| Metric | BPOP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.03 | 19.38 | Better (Cheaper) |
| ROE | 14.64% | 804.00% | Weak |
| Net Margin | 20.43% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.20 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 0.89 | 609.22 | Weak Liquidity |
| ROA | 1.18% | -20946.00% (disorted) | Weak |
BPOP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Popular, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.83%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
108.97%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
64.45%
Industry Style: Value, Dividend, Cyclical
High Growth