Popular (BPOP) posted a 46.5% earnings growth over the past year, representing a sharp turnaround from its longer-term average decline of 3.4% per year. With net profit margins rising to 27% compared to 20.2% last year, investors saw a meaningful boost in profitability and operational efficiency. Looking forward, the setup includes forecasts for continued growth, attractive valuation multiples compared to peers, and an improving value proposition for shareholders.
See our full analysis for Popular.
The next section puts these headline numbers in context by measuring them against the main market narratives that shape how investors view Popular’s future potential.
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Net profit margins currently stand at 27%, up from 20.2% the prior year. This reflects a significant step up in operational efficiency compared to recent history; however, margins have not yet reached the analysts’ long-term forecasted average of 24.7% in three years.
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Analysts’ consensus view sees current margins helping Popular outperform regional peers in near-term profitability,
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but the forecasted slip to 24.7% suggests cost or competitive pressures could gradually erode this advantage,
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even as ongoing investments in digital platforms and infrastructure modernization are seen as key to defending those margins over the longer term.
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Consensus narrative underscores how Popular’s stronger margins give the company breathing room as it ramps up digital investments and positions for a more competitive landscape.
📊 Read the full Popular Consensus Narrative.
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Popular is trading at just 9.8x price-to-earnings, undercutting both US banks peers (10.9x) and the broader US Banks industry (11.2x). Analysts cite this as a sign the market may not be fully crediting recent margin and profit improvements.
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Analysts’ consensus view flags the low PE as a value opportunity,
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especially when weighed against the 9.5% forecasted revenue growth that runs nearly in line with the US average of 10%,
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though they caution that any stalling in modernization, slow digital adoption or regional risks could keep the stock discounted relative to national banks.
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With analysts expecting the number of shares outstanding to fall by 5.22% per year over the next three years, future per-share earnings growth could be amplified relative to headline net income expansion.
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Analysts’ consensus view calls out prudent share repurchases and solid value metrics as supporting a “total return” case,
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since the share count reduction and current attractive valuation set a strong platform for outperformance,
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but they remain alert to regional risks, like Puerto Rico concentration and rising deposit competition, that could complicate this scenario.
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