Banco Bilbao Vizcaya Argentaria SA
🇪🇸 BBVA.MC · Madrid · ES0113211835
Bank
EUR 18.77 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 18.77 ÷ 1.83 = 10.3
TTM period through: 2025-12-31
Forward P/E (estimated): 9.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 10.7
Yield (Fwd)
4.90%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.88%
Net Debt/EBITDA (TTM)
-0.7x
Latest quarter: -2.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): -2.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
50.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 39.9%
Cash Flow Payout (TTM): 3.5%
FCF Coverage (TTM): 27.96x
ROE
18.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
BBVA is a highly profitable global commercial bank offering exceptional returns on equity and a secure dividend profile. Trading at €18.77, below our blended fair value estimate of €21-25, this represents roughly a 12-33% upside and makes it worth considering for new positions. The recent geopolitical-driven market volatility provides an attractive entry point for dividend investors seeking quality financial exposure and a reliable 4.9% yield.
Sector Context
Banco Bilbao Vizcaya Argentaria (BBVA) is a major global commercial bank providing retail, corporate, and investment banking services, with dominant market positions in Spain and Latin America. In the banking sector, a Debt/Equity ratio of 1.43x is completely normal as customer deposits are classified as debt; therefore, financial health is better assessed through capital ratios and profitability metrics like ROE rather than traditional corporate debt multiples.
Temporary Opportunity Identified
Broader market volatility and temporary sector sell-offs driven by escalating geopolitical tensions in the Middle East and shifting Federal Reserve interest rate expectations.
📊 Strategy Analysis
- • Trading at a P/E of 10.26, well within the target 8-15x range, versus an estimated fair value range of €21-25.
- • Exceptional Return on Equity (ROE) of 18.27% demonstrates robust profitability and efficient capital allocation.
- • Shareholder-friendly policies supported by a sustainable 4.88% dividend yield and recent cancellation of 74.9 million shares through buybacks.
- • Recent strategic divestiture of the Romanian unit for €591 million further strengthens the bank's core capital (CET1) position.
⚠ What to Watch
- • Recent quarterly data indicates a deceleration in top-line revenue, which warrants monitoring as global interest rate expectations shift.
- • Price-to-book ratio of 1.97 is elevated compared to traditional European banking averages, though largely justified by the superior ROE.
- • Significant exposure to emerging markets, particularly Mexico, introduces currency volatility and regional macroeconomic risks.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.