Popular (BPOP) is back on income investors’ radar after declaring its latest monthly payments on preferred shares and trust preferred securities, a move that puts its capital structure and yield profile in focus.

The latest preferred and trust preferred payouts come as Popular’s common shares trade at US$128.84, with a 30-day share price return of 5.76% and a 1-year total shareholder return of 34.10%. The 5-year total shareholder return of 150.72% points to momentum that has been sustained over a longer period.

If Popular’s mix of income and price gains has you thinking about where else capital might work harder, it could be a good time to look at fast growing stocks with high insider ownership.

With Popular trading at US$128.84, sitting below the average analyst target and with an indicated intrinsic discount, the key question is whether you are looking at genuine value or a market that already sees the future baked in.

Most Popular Narrative: 10.1% Undervalued

Popular’s most followed narrative points to a fair value of about US$143.33 per share, compared with the last close at US$128.84, which naturally pulls attention to what is built into those expectations.

Ongoing investments in digital infrastructure, including the launch of a new digital platform for commercial cash management and branch modernization, are expected to enhance customer acquisition, retention, and operational efficiency, supporting long term revenue and margin expansion.

Curious what kind of revenue pace, margin profile, and future P/E this narrative leans on to reach that figure? The full valuation story spells it out in detail.

Result: Fair Value of $143.33 (UNDERVALUED)

However, that fair value story rests on assumptions that could be tested if Puerto Rico’s economy weakens or if deposit competition compresses Popular’s net interest margins.

Build Your Own Popular Narrative

If you see the numbers differently or prefer to test your own assumptions against the data, you can build a custom Popular thesis in just a few minutes by starting with Do it your way.

A great starting point for your Popular research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Popular has your attention, do not stop here. The same tools that surfaced this story can help you quickly spot other opportunities that fit your style.

• Spot potential value setups by scanning these 868 undervalued stocks based on cash flows that may offer more attractive pricing based on their cash flow outlooks.
• Lean into future facing themes by checking out these 24 AI penny stocks that tie artificial intelligence to real business models.
• Target higher ongoing income by reviewing these 12 dividend stocks with yields > 3% that concentrate on yield above 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.