Banco Bilbao (BBVA) AI Stock Analysis

• Market Cap: $111.66B
• Dividend Yield: 4%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.79
• Revenue Growth: 7.86%
• EPS Growth: 17.13%
• Country: US
• Employees: 124,741
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.53
• Shares Outstanding: 5,763,285,600
• 10 Day Avg. Volume: 2,073,974
• 30 Day Avg. Volume: 1,360,286
• PEG Ratio: 0.18
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -2.79
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 4.98
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 12.44
• 1Y Price Target: $19.50
• Price Target Upside: -0.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $19.50 ▼(-0.36% Downside)

BBVA's overall stock score reflects strong financial performance and positive earnings call sentiment, offset by technical analysis concerns and cash flow challenges. The low P/E ratio and high dividend yield enhance its valuation appeal, but liquidity issues and mixed technical signals suggest caution.

Positive Factors

Revenue Growth

Strong loan growth in key markets like Spain and Mexico indicates robust demand and effective market penetration, supporting long-term revenue expansion.

Strategic Progress

BBVA's focus on sustainability and customer acquisition aligns with global trends, enhancing its competitive position and long-term growth prospects.

Capital Strength

Improved capital ratios demonstrate financial resilience, providing a buffer against economic uncertainties and supporting future growth initiatives.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues may hinder BBVA's ability to invest in growth opportunities and manage debt, impacting long-term financial health.

Debt Reliance

Heavy reliance on debt financing could limit financial flexibility and increase vulnerability to interest rate fluctuations, affecting long-term stability.

Market Challenges in Turkey

Challenges in Turkey, including a high cost of risk, may impact BBVA's regional growth and profitability, posing risks to its strategic objectives.

Banco Bilbao Business Overview & Revenue Model

Company Description

Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail banking, wholesale banking, and asset management services. It offers current accounts; and demand, savings, overnight, time, term, and subordinated deposits. The company also provides loan products; deals in securities; and manages pension and investment funds. In addition, it offers credit cards; corporate and investment banking services; insurance products and services; and real estate services. The company provides its products through online and mobile channels. As of December 31, 2021, it operated through a network of 6,083 branches and 29,148 ATMs. It operates in Spain, Mexico, South America, the United States, Turkey, Asia, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

How the Company Makes Money

BBVA generates revenue through various key streams, primarily from interest income, fees, and commissions. The bank earns interest income by lending money to customers at higher rates than the interest it pays on deposits. This interest rate spread is a major contributor to its profitability. Additionally, BBVA charges fees for services such as account maintenance, transactions, and investment services, which add to its revenue. The bank also engages in investment banking activities, including underwriting and advisory services, which provide further income. Significant partnerships, especially in the fintech sector, enhance BBVA's technological capabilities and customer reach, contributing to its earnings through innovative financial products and services. Furthermore, the bank's focus on digital transformation and customer-centric services has positioned it to capture a broader market share and increase profitability.

Banco Bilbao Financial Statement Overview

Summary

BBVA demonstrates strong growth and profitability in its income statement, supported by efficient operations and cost management. However, the balance sheet reflects high leverage typical of the banking sector, with a notable return on equity. The cash flow situation is concerning due to significant negative cash flows, which may impact liquidity. Overall, BBVA exhibits strong financial performance with areas needing attention in cash management.

Income Statement

The income statement shows strong revenue growth with a 37.5% increase in revenue year-over-year from 2024 to TTM. The gross profit margin stands at 76.9% for TTM, demonstrating high profitability. The net profit margin is also impressive at 24.3%, indicating efficient cost management. EBIT and EBITDA margins are healthy at 40.1% and 41.1%, respectively, which reflect robust operational efficiency. Overall, the income statement reflects strong revenue and profit growth, a key strength for BBVA.

Balance Sheet

BBVA's balance sheet shows a relatively high debt-to-equity ratio of 1.96 for TTM, indicating significant leverage, which is typical for banks but presents potential risk. However, the return on equity is strong at 19.2%, showcasing effective use of shareholder capital. The equity ratio is 7.1%, slightly on the lower side, suggesting a lower proportion of equity financing. The balance sheet reflects a stable financial position with some leverage risk.

Cash Flow

The cash flow statement reveals a challenging situation with negative operating cash flow of -30.98 billion and free cash flow of -32.2 billion for TTM. The free cash flow to net income ratio is negative, indicating cash flow issues compared to profitability. Despite a significant free cash flow growth rate of 66.2% from 2024 to TTM, the overall negative cash flow is a concern. The cash flow analysis highlights liquidity challenges that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.92B	31.57B	27.16B	22.98B	18.60B	30.07B
Gross Profit	31.07B	33.63B	27.16B	24.68B	18.60B	15.23B
EBITDA	17.57B	16.94B	13.82B	11.60B	8.48B	6.54B
Net Income	10.51B	10.05B	8.02B	6.36B	4.65B	1.30B
Balance Sheet
Total Assets	776.97B	772.40B	775.56B	712.09B	662.88B	733.80B
Cash, Cash Equivalents and Short-Term Investments	131.27B	199.57B	144.79B	225.41B	228.87B	142.31B
Total Debt	71.80B	144.43B	179.11B	114.64B	116.09B	110.80B
Total Liabilities	716.09B	712.39B	720.29B	661.57B	614.13B	683.78B
Stockholders Equity	56.83B	55.65B	51.70B	46.90B	43.91B	44.55B
Cash Flow
Free Cash Flow	-11.50B	-19.39B	-2.54B	21.28B	-2.19B	38.23B
Operating Cash Flow	-10.44B	-18.19B	-721.00M	23.72B	-1.24B	39.35B
Investing Cash Flow	-1.24B	-1.42B	-1.42B	-3.91B	-1.63B	-37.00M
Financing Cash Flow	-2.70B	-2.57B	-1.84B	-7.56B	-4.35B	-2.07B

Banco Bilbao Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBVA, the sentiment is Positive. The current price of 19.57 is above the 20-day moving average (MA) of 18.90, above the 50-day MA of 18.80, and above the 200-day MA of 14.94, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBVA.

Banco Bilbao Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAN	74 Outperform	$143.63B	10.14	12.85%	2.38%	-14.74%	17.03%
BCS	73 Outperform	$66.99B	8.89	9.83%	2.25%	16.06%	64.31%
ING	73 Outperform	$71.20B	11.09	12.08%	4.85%	1.13%	-1.14%
MUFG	72 Outperform	$167.30B	13.97	9.43%	1.40%	0.82%	28.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBVA	64 Neutral	$111.66B	9.93	18.32%	4.00%	7.86%	17.13%
C	61 Neutral	$178.70B	13.65	6.88%	2.35%	-0.63%	105.57%

Banco Bilbao Corporate Events

BBVA Accelerates Shareholder Remuneration After Banco Sabadell Bid Lapses

BBVA announced that its takeover bid for Banco Sabadell will not proceed as the minimum acceptance level was not met. In response, BBVA will accelerate its shareholder remuneration plan, including a share buyback of around €1 billion starting October 31, and the highest interim dividend ever of €0.32 per share on November 7, totaling €1.8 billion. The bank’s Strategic Plan aims to maintain its position at the forefront of European banking, with ambitious financial goals for 2025-2028, including a ROTE of around 22% and a cumulative attributable profit of approximately €48 billion over four years.

BBVA Announces Interim Dividend Amid Banco de Sabadell Acquisition Offer

On September 29, 2025, BBVA announced a cash interim dividend of €0.32 per share to be paid on November 7, 2025, as part of its 2025 dividend plan. However, if BBVA’s voluntary offer for Banco de Sabadell is not settled by November 4, the dividend payment will be postponed to ensure new shareholders from the offer can participate. This strategic move reflects BBVA’s commitment to shareholder value and may impact its market positioning and stakeholder relations.

BBVA to Present Q2 2025 Financial Results on July 31

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) announced that it will present its financial results for the second quarter of 2025 on July 31, 2025. The presentation will be accessible via their website, with a recording available for at least one month. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market positioning.