BankUnited (BKU) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 3%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.20
• Revenue Growth: -5.44%
• EPS Growth: 45.47%
• Country: US
• Employees: 1,662
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.95
• Shares Outstanding: 75,212,776
• 10 Day Avg. Volume: 1,234,045
• 30 Day Avg. Volume: 1,158,799
• PEG Ratio: 0.41
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 6.48
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 2.68
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $42.17
• Price Target Upside: 3.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $41.00 ▲(0.81% Upside)

BankUnited's overall stock score reflects a combination of solid financial performance and optimistic earnings call sentiment, offset by technical analysis concerns. The company's reasonable valuation and attractive dividend yield further support the score. However, challenges in revenue growth and cash flow sustainability, along with mixed technical indicators, temper the overall outlook.

Positive Factors

Noninterest Income Growth

The significant growth in noninterest income indicates successful diversification of revenue streams, reducing reliance on traditional interest income and enhancing financial stability.

Capital Strength

Strong capital levels and increasing tangible book value per share reflect robust financial health, providing a solid foundation for future growth and resilience against economic fluctuations.

Expansion in Tampa

The new office in Tampa signifies strategic expansion in a growing market, enhancing BankUnited's presence and capabilities in corporate and commercial banking services.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a risk to long-term profitability and market competitiveness, necessitating strategic initiatives to revitalize growth and maintain market position.

Loan Portfolio Decline

The decline in the loan portfolio, particularly in commercial real estate and industrial segments, could impact future interest income and limit growth opportunities.

Free Cash Flow Decline

A decline in free cash flow growth may constrain liquidity and limit the bank's ability to invest in growth initiatives or weather economic downturns.

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 loans and fees associated with its financial products and services. The bank makes money by lending to customers at higher interest rates than what it pays on deposits, a key component of its net interest margin. Key revenue streams include commercial and consumer loans, mortgage originations, and deposit account service fees. Additionally, the bank earns income from investment securities and service charges on deposit accounts. Partnerships with financial technology firms and local businesses also contribute to its earnings by enhancing service offerings and customer engagement.

BankUnited Financial Statement Overview

Summary

BankUnited demonstrates solid profitability and operational efficiency, but faces challenges with revenue growth and cash flow sustainability. The company has improved its leverage position, which is a positive sign for financial stability. Continued focus on revenue growth and cash flow management will be crucial for future success.

Income Statement

BankUnited's income statement shows mixed results. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains healthy gross and net profit margins, suggesting efficient operations. The EBIT and EBITDA margins are stable, reflecting consistent operational performance despite revenue challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has improved from previous years, indicating better leverage management. Return on equity is reasonable, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced approach to asset financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which could impact future liquidity. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations to cover net income. The free cash flow to net income ratio remains strong, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	2.02B	1.94B	1.31B	1.09B	1.20B
Gross Profit	999.76M	958.35M	873.03M	915.44M	996.96M	706.55M
EBITDA	408.77M	376.46M	311.14M	452.75M	527.88M	321.87M
Net Income	258.00M	232.47M	178.67M	284.97M	414.98M	197.85M
Balance Sheet
Total Assets	35.46B	35.24B	35.76B	37.03B	35.82B	35.01B
Cash, Cash Equivalents and Short-Term Investments	10.20B	491.12M	588.28M	572.65M	314.86M	397.72M
Total Debt	2.96B	3.64B	5.82B	6.33B	2.83B	4.03B
Total Liabilities	32.51B	32.43B	33.18B	34.59B	32.78B	32.03B
Stockholders Equity	2.95B	2.81B	2.58B	2.44B	3.04B	2.98B
Cash Flow
Free Cash Flow	365.58M	433.78M	657.50M	1.29B	1.19B	844.57M
Operating Cash Flow	365.58M	433.78M	657.50M	1.29B	1.22B	864.17M
Investing Cash Flow	234.15M	409.71M	980.57M	-2.12B	-1.64B	-2.62B
Financing Cash Flow	-231.89M	-940.66M	-1.62B	1.08B	334.87M	1.94B

BankUnited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 40.67 is above the 20-day moving average (MA) of 38.56, above the 50-day MA of 38.43, and above the 200-day MA of 36.01, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKU.

BankUnited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVBF	―	$2.54B	12.52	20.93%	4.35%	-8.43%	3.92%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BKU	―	$3.06B	11.49	9.04%	3.00%	-5.44%	45.47%
TOWN	―	$2.64B	14.52	7.37%	3.19%	9.48%	12.83%
FBK	―	$2.92B	25.33	5.85%	1.33%	10.80%	-6.22%
PRK	―	$2.47B	14.17	13.69%	2.99%	6.29%	28.28%
SFNC	―	$2.51B	-5.90	-12.42%	4.89%	-55.54%	-386.73%

BankUnited Corporate Events

BankUnited Reports Strong Q3 2025 Earnings Growth

BankUnited, Inc. is a national bank holding company headquartered in Miami Lakes, Florida, providing a range of consumer and commercial banking products and services across several states, including Florida and New York.

BankUnited’s Earnings Call Highlights Strong Performance and Optimism

The recent earnings call for BankUnited showcased a strong financial performance, with the company reporting increased earnings, controlled expenses, and significant growth in noninterest income. Despite some challenges in the loan portfolio and specific credit issues, the overall sentiment was optimistic, with a clear focus on growth and strategic initiatives.