Burke & Herbert Bank & Company (BHRB) AI Stock Analysis

• Market Cap: $753.93M
• Dividend Yield: 4.29%
• Average Volume (3M): 78.52K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.72
• Revenue Growth: 141.53%
• EPS Growth: -20.35%
• Country: US
• Employees: 815
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 2.41
• Shares Outstanding: 14,982,807
• 10 Day Avg. Volume: 39,446
• 30 Day Avg. Volume: 78,524
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.58
• Price to Cash Flow (P/CF): 2.80
• P/FCF Ratio: 1.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $76.00
• Price Target Upside: 51.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Burke & Herbert Bank & Company's stock score is primarily supported by a strong financial foundation with zero debt and effective cash flow management, despite a significant decline in revenue. Technical analysis suggests bearish momentum, and valuation indicates a premium price, offset by a solid dividend yield. The departure of the CAO may introduce short-term uncertainty but is not expected to cause substantial disruption.

Burke & Herbert Bank & Company Business Overview & Revenue Model

Company Description

Burke & Herbert Bank & Company (BHRB) is a community-focused bank providing a comprehensive range of financial services and products. Established in 1852 and headquartered in Alexandria, Virginia, the bank operates within the financial services sector. It offers personal and business banking solutions, including checking and savings accounts, loans, mortgages, credit cards, and wealth management services. The bank is committed to delivering personalized service to its clients while fostering community growth and development.

How the Company Makes Money

Burke & Herbert Bank & Company generates revenue primarily through interest income from loans and mortgages, as well as through fees associated with their financial products and services. The bank earns interest by lending depositor funds at a higher rate than it pays on deposits. Additionally, it charges fees for account maintenance, overdrafts, and other banking services. Wealth management and investment services also contribute to the bank's earnings through advisory fees and commissions. Partnerships with local businesses and community initiatives further enhance its revenue potential, leveraging its deep-rooted presence and relationships within the community.

Burke & Herbert Bank & Company Financial Statement Overview

Summary

Burke & Herbert Bank & Company exhibits strong profitability and financial stability, driven by high margins and a solid equity base. Despite a significant revenue decline in 2024, the company's zero debt and high return on equity provide a cushion against market volatility. The healthy cash flow generation further enhances its financial resilience. However, maintaining revenue growth will be crucial for sustaining long-term success.

Income Statement

The company demonstrated a strong net profit margin of 98.73% in 2024, indicating efficient cost management and profitability. However, revenue for 2024 showed a significant decline of 67.4% from the previous year, raising concerns about future growth prospects. The lack of EBIT and EBITDA in 2024 further suggests a potential shift in financial strategy or operational challenges.

Balance Sheet

Burke & Herbert Bank & Company maintains a robust financial position with a high equity ratio of 87.14% in 2024, reflecting strong capitalization and low leverage. The debt-to-equity ratio is zero, indicating no debt and a conservative financial structure. Return on equity reached an impressive 4.48%, showcasing effective utilization of shareholder funds.

Cash Flow

The company has displayed a positive operating cash flow to net income ratio of 1.02 in 2024, indicating healthy cash generation from operations. Free cash flow increased significantly in 2024, supported by consistent positive operating cash flows. However, the cash flow from financing activities was negative, suggesting a reduction in external financing or debt repayment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.17M	110.94M	120.78M	113.85M	108.81M
	Gross Profit
36.17M	164.85M	120.78M	113.85M	108.81M
	EBIT
-197.68M	27.93M	52.30M	40.44M	28.44M
	EBITDA
0.00	27.93M	55.35M	43.65M	31.38M
	Net Income Common Stockholders
35.71M	22.69M	44.01M	36.16M	26.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.32M	1.26B	50.30M	77.36M	228.70M
	Total Assets
7.81B	3.62B	3.56B	3.62B	3.43B
	Total Debt
476.88M	272.00M	343.10M	275.00M	225.00M
	Net Debt
341.57M	227.50M	292.81M	197.64M	-3.70M
	Total Liabilities
7.08B	3.30B	3.29B	3.23B	3.05B
	Stockholders Equity
797.63M	314.75M	273.45M	389.63M	384.88M
Cash Flow		Free Cash Flow
36.41M	32.76M	37.98M	53.72M	20.48M
	Operating Cash Flow
36.41M	47.01M	61.06M	54.80M	23.17M
	Investing Cash Flow
123.56M	-44.53M	-127.56M	-384.13M	-405.72M
	Financing Cash Flow
-28.38M	-8.28M	39.44M	177.99M	527.50M

Burke & Herbert Bank & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHRB, the sentiment is Negative. The current price of 50.32 is below the 20-day moving average (MA) of 57.04, below the 50-day MA of 60.60, and below the 200-day MA of 61.12, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 30.89 is Neutral, neither overbought nor oversold. The STOCH value of 18.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHRB.

Burke & Herbert Bank & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVSP	68 Neutral	$766.80M	10.24	8.80%	3.23%	11.77%	7.54%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
CFFN	62 Neutral	$697.13M	13.43	4.93%	6.48%	5.57%	―
HIFS	62 Neutral	$480.46M	17.15	6.72%	1.14%	14.02%	5.59%
FULT	62 Neutral	$2.76B	9.63	9.69%	4.56%	21.10%	-4.20%
BHRB	61 Neutral	$753.93M	17.87	6.83%	4.29%	141.53%	-20.35%

Burke & Herbert Bank & Company Corporate Events

Burke & Herbert Announces CAO Julie Markwood’s Departure

On December 3, 2024, Burke & Herbert Financial Services Corp. announced that Julie R. Markwood, the Chief Accounting Officer, would be taking a temporary leave of absence for medical reasons and would not resume her duties, leading to her employment ending on April 2, 2025. Julie R. Markwood, who served the company and its predecessor for 37 years, was recognized for her significant contributions, and her departure is deeply regretted by her colleagues. Kirtan Parikh will continue as Interim Chief Accounting Officer.