First Busey (BUSE) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: 4.3%
• Average Volume (3M): 476.79K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.97
• Revenue Growth: 9.61%
• EPS Growth: -9.20%
• Country: US
• Employees: 1,479
• Sector: Financial
• Sector Strength: 93
• Industry: Banking
• EPS (TTM): 1.98
• Shares Outstanding: 89,876,450
• 10 Day Avg. Volume: 719,603
• 30 Day Avg. Volume: 476,792
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.83
• Price to Cash Flow (P/CF): 6.10
• P/FCF Ratio: 3.70
• 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: $29.00
• Price Target Upside: 34.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

First Busey's overall stock score reflects strong financial performance with a solid balance sheet and robust cash flow. The recent merger with CrossFirst Bankshares presents a significant growth opportunity, enhancing market presence. While the technical analysis shows bearish momentum, the valuation metrics suggest potential undervaluation. Investors may find the stock attractive due to its growth prospects and dividend yield, despite short-term technical challenges.

First Busey Business Overview & Revenue Model

Company Description

First Busey Corporation (BUSE) is a financial holding company based in Champaign, Illinois. It operates in the financial services sector, primarily through its subsidiary, Busey Bank. The company provides a comprehensive range of banking services, including personal and commercial banking, mortgage lending, wealth management, and investment services. First Busey serves individuals, businesses, and institutional clients across various regions, with a strong presence in Illinois, Missouri, Florida, and Indiana.

How the Company Makes Money

First Busey Corporation generates revenue primarily through interest income from its lending activities, which include personal, commercial, and mortgage loans. The company also earns non-interest income from various sources such as fees for banking services, asset management services, investment advisory services, and wealth management. Additionally, First Busey benefits from its strategic partnerships and acquisitions that enhance its service offerings and expand its market reach. The company leverages its banking and financial expertise to provide tailored financial solutions, thereby attracting a diverse client base and ensuring a steady stream of revenue.

First Busey Financial Statement Overview

Summary

First Busey's financial statements indicate strong revenue growth and efficient operations, evidenced by high EBIT margins. The balance sheet is solid with low leverage and stable equity, though ROE has seen a decline. Cash flow generation is robust, providing a solid foundation for future growth. However, there are minor concerns with declining net profit margins and ROE, which could affect long-term profitability if trends continue.

Income Statement

The income statement shows a strong EBIT margin at 97.55% for 2024, indicating efficient operations relative to revenue. However, net profit margin has decreased slightly to 21.71% from 24.11% in 2023. The revenue growth rate is substantial at 930.14%, primarily due to a significant increase in total revenue from the previous year. This growth trajectory is positive, but the decline in net margins could indicate pressures on profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 11.48%, though slightly lower than previous years. The debt-to-equity ratio is very low at 0.01, suggesting minimal leverage and financial risks. Return on equity stands at 8.22%, down from previous years, indicating reduced profitability on equity. Overall, the balance sheet is stable with low leverage, but there is room for improvement in ROE.

Cash Flow

Cash flow metrics show robust operating cash flow to net income ratio at 1.57, indicating healthy cash generation. The free cash flow to net income ratio is at 1.57 as well, demonstrating strong free cash flow relative to earnings. Free cash flow growth is positive but modest compared to prior periods, suggesting stability in cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
523.68M	50.82M	450.24M	403.50M	401.20M
	Gross Profit
523.68M	50.82M	450.24M	403.50M	401.20M
	EBIT
510.88M	0.00	212.31M	156.82M	128.21M
	EBITDA
0.00	0.00	-20.22M	-31.71M	-20.72M
	Net Income Common Stockholders
113.69M	122.56M	128.31M	123.45M	100.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.94B	2.22B	2.69B	4.82B	2.95B
	Total Assets
12.05B	12.28B	12.34B	12.86B	10.54B
	Total Debt
11.04M	336.18M	687.90M	368.68M	310.68M
	Net Debt
-118.40M	-383.40M	460.73M	-467.42M	-377.86M
	Total Liabilities
10.66B	11.01B	11.19B	11.54B	9.27B
	Stockholders Equity
1.38B	1.27B	1.15B	1.32B	1.27B
Cash Flow		Free Cash Flow
178.27M	163.86M	160.80M	156.97M	165.10M
	Operating Cash Flow
178.27M	173.39M	165.79M	162.01M	169.30M
	Investing Cash Flow
657.90M	550.99M	-290.86M	-829.19M	-735.66M
	Financing Cash Flow
-858.09M	-231.96M	-483.86M	814.74M	725.61M

First Busey Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.57
• 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 BUSE, the sentiment is Negative. The current price of 21.57 is below the 20-day moving average (MA) of 24.07, below the 50-day MA of 23.61, and below the 200-day MA of 24.53, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 15.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BUSE.

First Busey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	74 Outperform	$22.01B	12.41	9.93%	4.09%	10.13%	-1.25%
ONB	74 Outperform	$6.89B	12.84	9.06%	2.59%	16.39%	-13.25%
BUSE	70 Outperform	$2.03B	11.41	8.56%	4.30%	9.61%	-9.20%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
CMA	63 Neutral	$7.66B	11.64	10.72%	4.87%	-6.54%	-21.90%

First Busey Corporate Events

First Busey Completes Merger with CrossFirst Bankshares

On March 1, 2025, First Busey Corporation completed its merger with CrossFirst Bankshares, Inc., with Busey continuing as the surviving corporation. This strategic merger, initially announced in August 2024, is set to enhance Busey’s presence in high-growth metro markets and expand its commercial banking and wealth management services. The merger will result in a combined entity with approximately $20 billion in total assets, $17 billion in deposits, and $15 billion in loans, positioning Busey as a leading regional banking institution in the Midwest and Southwestern U.S.

First Busey Appoints Interim CFO Amid Leadership Change

On February 18, 2025, First Busey Corporation announced the departure of Jeffrey D. Jones, its former Executive Vice President and Chief Financial Officer, effective February 18, 2025. His separation was amicable and unrelated to any disagreements over the company’s financial policies or operations. In conjunction with his departure, the company has appointed Scott A. Phillips as the Interim CFO. Phillips, who has extensive experience in the banking sector and has been with First Busey since 2019, will continue his responsibilities while stepping into this new role. This leadership change is unlikely to affect the company’s ongoing acquisition of CrossFirst Bankshares, Inc.

First Busey Reports Strong Q4 and Strategic Merger

On January 28, 2025, First Busey Corporation announced its financial results for the fourth quarter of 2024, reporting a net income of $28.1 million and a diluted EPS of $0.49. The company highlighted a record high in revenue for its Wealth Management segment and a notable increase in tangible book value per share. The strategic merger with CrossFirst Bankshares, Inc., approved by stockholders and regulatory bodies, positions the company to become a significant commercial bank across multiple states. This merger, expected to be finalized by March 1, 2025, will significantly expand Busey’s assets and market reach.