BankUnited (BKU) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: 3.58%
• Average Volume (3M): 912.59K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.57
• Revenue Growth: 3.42%
• EPS Growth: 30.07%
• Country: US
• Employees: 1,662
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 3.08
• Shares Outstanding: 74,751,080
• 10 Day Avg. Volume: 882,664
• 30 Day Avg. Volume: 912,590
• PEG Ratio: 0.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.71
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 1.70
• 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: $42.29
• Price Target Upside: 41.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

BankUnited's overall stock score reflects a robust financial performance with significant revenue growth and profit margins. The earnings call supports this with positive guidance and improved EPS. However, technical indicators show a downward trend, and challenges in loan quality present risks. The stock's valuation remains attractive, offering potential for returns.

Positive Factors

Company Valuation

The company's fundamental story is strong, and its valuation is meaningfully discounted relative to the group, especially compared to other Southeast peers.

Earnings

BankUnited reported better than expected NIM expansion and lower provision drove an EPS beat.

Financial Performance

The company posted its most profitable quarter in nearly two years, with a notable return on assets and equity.

Negative Factors

Buyback Strategy

No big buyback is coming, with management taking anything in the $300-400MM range off the table.

Guidance

2024 guidance updates were net negative related to loans and expenses.

Loan Performance

Loan growth on a period end basis decreased 4% annualized Q/Q driven by declines in all loan categories excluding commercial real estate.

BankUnited Business Overview & Revenue Model

Company Description

BankUnited, Inc. operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial payment, and cash management services. Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based loans, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans. The company also offers online, mobile, and telephone banking services. As of December 31, 2021, it operated through a network of 63 banking centers located in 13 Florida counties; and 4 banking centers in the New York metropolitan area. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.

How the Company Makes Money

BankUnited generates revenue primarily through interest income from its loan portfolio, which includes commercial and industrial loans, real estate loans, and consumer loans. The company also earns money from interest on securities and other investments. Additionally, BankUnited derives non-interest income from various sources, such as service charges on deposit accounts, fees from treasury management services, and other financial service fees. The bank's profitability is influenced by factors like net interest margin, loan growth, asset quality, and the overall economic environment. Strategic partnerships and a focus on expanding its customer base in key geographic regions also contribute to its revenue growth.

BankUnited Financial Statement Overview

Summary

BankUnited displays strong revenue growth and favorable profit margins, supported by a solid balance sheet with no debt. However, challenges include declining return on equity and stagnant free cash flow growth, reflecting areas for improvement in operational efficiency.

Income Statement

BankUnited shows a strong gross profit margin consistently at 100%, which is typical for financial institutions where revenue equals gross profit. The net profit margin for 2024 is approximately 12.07%, a slight increase from the previous year. Revenue growth has been impressive, with a substantial increase of 120.49% from 2023 to 2024, indicating robust business expansion. However, the lack of EBITDA data limits a complete profitability analysis.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 7.99% in 2024, indicating a strong capital base. The debt-to-equity ratio is favorable at 0, showcasing low financial leverage and risk. However, the return on equity has decreased to 8.26% in 2024, down from 13.81% the previous year, suggesting declining efficiency in generating profits from shareholders' equity.

Cash Flow

BankUnited's free cash flow remained stable, with no growth reported in 2024. The operating cash flow to net income ratio is 0.42, indicating moderate cash generation from operations relative to net income. The absence of growth in free cash flow presents concerns over cash generation potential despite positive cash flow metrics.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.93B	873.03M	990.60M	929.84M	884.98M
	Gross Profit
1.93B	873.03M	990.60M	929.84M	884.98M
	EBIT
1.91B	237.08M	711.88M	449.38M	249.36M
	EBITDA
0.00	0.00	452.75M	527.88M	321.87M
	Net Income Common Stockholders
232.47M	178.67M	284.97M	414.98M	197.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.62B	588.28M	572.65M	314.86M	397.72M
	Total Assets
35.24B	35.76B	37.03B	35.82B	35.01B
	Total Debt
3.64B	5.82B	6.14B	2.63B	3.85B
	Net Debt
3.15B	5.24B	5.57B	2.31B	3.45B
	Total Liabilities
32.43B	33.18B	34.59B	2.63B	3.85B
	Stockholders Equity
2.81B	2.58B	2.44B	3.04B	2.98B
Cash Flow		Free Cash Flow
97.79M	657.50M	1.24B	1.18B	844.57M
	Operating Cash Flow
97.79M	657.50M	1.29B	1.22B	864.17M
	Investing Cash Flow
5.00M	980.57M	-2.12B	-1.64B	-2.62B
	Financing Cash Flow
-90.48M	-1.62B	1.08B	334.87M	1.94B

BankUnited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKU, the sentiment is Negative. The current price of 29.82 is below the 20-day moving average (MA) of 33.43, below the 50-day MA of 36.12, and below the 200-day MA of 36.50, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKU.

BankUnited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRME	76 Outperform	$2.16B	10.83	8.85%	3.79%	5.54%	-8.57%
BKU	72 Outperform	$2.42B	10.51	9.90%	3.58%	3.42%	30.07%
FFBC	71 Outperform	$2.23B	9.73	9.72%	4.07%	9.95%	-11.02%
TOWN	66 Neutral	$2.38B	14.70	7.74%	3.16%	8.97%	4.82%
SFNC	65 Neutral	$2.38B	15.61	4.39%	5.84%	6.86%	-12.06%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
PRK	60 Neutral	$2.48B	16.48	12.68%	2.77%	14.38%	19.61%