Popular Inc. Popular Capital Trust II - 6.125% Cumulative Monthly Income Trust Preferred Securities (BPOPM)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach BPOPM as a preferred claim on Popular Inc., not as a common stock. The coupon is 6.125% cumulative and monthly, so the income is contractual, but the real question is the issuer's ability to earn through a cycle. The filed figures are encouraging: net income rose from $541.3 million in fiscal 2023 to $614.2 million in fiscal 2024 and $833.2 million in fiscal 2025; diluted EPS climbed from $7.52 to $8.56 to $12.30. In fiscal Q1 2026, net income was $245.7 million and diluted EPS $3.78; in fiscal Q2 2026, net income was $278.2 million and diluted EPS $4.35. The Lynch-style category is STALWART, based on 10.5% annual profit growth over five years, which fits a steady financial franchise rather than a fast grower. Still, I have no filed revenue, balance-sheet, capital, asset-quality, or dividend-coverage figures here, so I cannot verify the moat or safety with Graham-like precision. A bank's moat is usually modest and regulatory; the preferred's protection comes from its seniority and cumulative feature, not from pricing power. At the close on 2026-10-16, the price was $25.38, near the 52-week high of $25.65 and close to a $25 par value, so the security offers a fixed 6.125% coupon with little price discount. FairStock's valuation metrics are not available. I would call the underlying earnings trajectory strong and the preferred price fair, but the margin of safety is thin without coverage and capital data.

In plain English: This is a fixed-income security tied to Popular Inc., a financial services company; it promises a 6.125% cumulative monthly payment. The underlying company's filed net income and profit per share rose from fiscal 2023 through fiscal 2025 and continued rising in the first half of 2026. At the 2026-10-16 close of $25.38, the security sits near the top of its 52-week range and close to its $25 face value, so it looks fairly priced rather than cheap for the income it pays.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer