Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Fundamental Analysis: Bull vs. Bear Case

BBVA

Banco Bilbao Vizcaya Argentaria, S.A.

Fundamental data last updated:August 20, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

ES

Next Earnings Date

Pending Announcement

Business Summary

Banco Bilbao Vizcaya Argentaria, S.A., established in Bilbao, Spain, in 1857, operates as a comprehensive global financial services provider through its various subsidiaries. The institution specializes in retail banking, wholesale banking, and asset management. Its extensive product offerings include everyday current accounts, a variety of deposit options such as demand, savings, overnight, time, term, and subordinated deposits, along with numerous loan products. BBVA also trades in securities and manages both pension and investment funds. Additional services encompass credit cards, corporate and investment banking solutions, insurance products, and real estate services. The bank delivers these offerings through both online and mobile digital channels. As of December 31, 2021, its physical presence was robust, featuring 6,083 branches and 29,148 ATMs. Geographically, BBVA maintains operations across Spain, Mexico, South America, the United States, Turkey, Asia, and the wider European region.

VALUATION

P/E

13.69 Market Cap ($M USD)

$145.65B

Forward P/E

9.85 PEG

0.25 PRICE TO SALES

3.27 PRICE TO BOOK

2.31 EV / EBITDA

7.41 5-Year Average P/E

Free Cash Flow Yield

89.62%

DCF Value

$33.13

Graham Number

$20.67

Price to FCF

1.12 EV to FCF

1.18 Earnings Yield

8.32%

FCF Yield

89.62%

DIVIDEND

Yield

4.01%

Annual Payout

$0.92

Payout Ratio

38.84%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.91

Next Year EPS Growth Estimate

$2.65

Next Year Revenue Growth Estimate

$47.56B

Return on Equity (ROE)

18.94%

FREE CASH FLOW

Operating Margin

42.64%

Debt-to-Equity

1.43 Piotroski F-Score

7 Altman Z-Score

-0.29

Return on Invested Capital (ROIC)

6.97%

Current Ratio

0.44 Quick Ratio

0.44 Net Debt to EBITDA

0.41 Interest Coverage

2.04 Gross Profit margin

83.28%

FCF PER SHARE

$20.14

REVENUE PER SHARE

$6.88

Gainseekers Quantitative Analysis

Summary

BBVA’s valuation presents a compelling opportunity for deep value investors. The stock traded below its DCF Value, suggesting a significant undervaluation. With a Forward P/E of 8.41 and an Earnings Yield of 10.16%, the market seems to underestimate its growth potential. However, the negative Altman Z-score raises red flags about financial distress, indicating potential risks. Overall, the market may be mispricing BBVA’s intrinsic value, offering a potential upside for those willing to navigate its complexities.

AI Exposure / Tech Reliance

As a diversified bank, BBVA is positioned to leverage AI and tech advancements to enhance operational efficiency and customer service. The financial sector's ongoing digital transformation could provide BBVA with opportunities to streamline processes and offer innovative financial products. However, the bank must remain agile to adapt to rapid technological shifts.

The Bull Case

For value investors, BBVA's robust ROIC of 6.97% and a Piotroski F-Score of 7 highlight strong operational efficiency and financial health. The operating margin of 42.64% underscores its pricing power, while a solid FCF Yield of 1.09% indicates effective capital management. These metrics suggest BBVA is well-equipped to generate sustainable returns, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, BBVA faces structural risks that cannot be ignored. The Price/Book ratio of 1.89 and Price/Sales of 2.69 suggest the stock may be overvalued relative to its peers. Additionally, the low Current Ratio of 0.44 indicates potential liquidity concerns. With the stock extended near its 52-week high, investors should be cautious of potential overextension and market volatility.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.88 Insider Buying % (6 Mo)

Distance to 52-Week High

0.23%

Distance to 52-Week Low

44.03%

EARNINGS SURPRISE %

5.26%

50-DAY SMA

$22.98

200-DAY SMA

$22.15

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.