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

• Market Cap: $970.84M
• Dividend Yield: 3.41%
• Average Volume (3M): 65.44K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.81
• Revenue Growth: 53.68%
• EPS Growth: 290.47%
• Country: US
• Employees: 814
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.97
• Shares Outstanding: 15,028,524
• 10 Day Avg. Volume: 113,149
• 30 Day Avg. Volume: 65,441
• PEG Ratio: -1.12
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 11.49
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 10.80
• 1Y Price Target: $72.00
• Price Target Upside: 11.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.57
• Revenue Forecast (FY): $345.43M

• Rating: 78 Outperform
• Price Target: $76.00 ▲(17.65% Upside)

Burke & Herbert Bank & Company receives a strong overall score due to its solid financial performance, attractive valuation, and positive technical indicators. The strategic merger with LINKBANCORP and strong financial results further bolster its position. The stock's upward momentum and undervaluation relative to peers make it an appealing investment opportunity.

Positive Factors

Strategic Merger

The merger with LinkBancorp enhances Burke & Herbert's scale and competitive positioning, expanding its market presence and operational capabilities in the regional banking sector.

Strong Profitability

High profit margins indicate effective cost management and strong profitability, which supports sustainable cash flow and financial health over the long term.

Solid Financial Health

A strong loan-to-deposit ratio and ample liquidity ensure financial stability and the ability to meet customer demands, supporting long-term growth and resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential challenges in expanding market share and generating new business, which could impact long-term profitability.

Cash Conversion Efficiency

Low cash conversion efficiency suggests difficulties in turning income into cash, which could strain liquidity and affect the company's ability to invest in growth opportunities.

Moderate Leverage

While typical for the banking industry, moderate leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to navigate economic downturns.

Burke & Herbert Bank & Company Business Overview & Revenue Model

Company Description

Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.

How the Company Makes Money

Burke & Herbert Bank & Company generates revenue through several key streams. The primary source of income comes from net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. The bank offers various loan products, including personal loans, commercial loans, and mortgages, which contribute significantly to this income. Additionally, BHRB earns non-interest income through fees associated with account maintenance, ATM usage, and transaction services. The bank may also engage in wealth management and investment advisory services, adding to its revenue. Partnerships with local businesses and community organizations enhance its visibility and client base, further supporting its earnings.

Burke & Herbert Bank & Company Financial Statement Overview

Summary

Burke & Herbert Bank & Company demonstrates solid financial health with strong profitability, manageable leverage, and improving cash flow generation. The income statement shows consistent revenue growth and solid profitability margins. The balance sheet is stable, though the debt-to-equity ratio is slightly elevated. Cash flow analysis reveals strong free cash flow growth, indicating improved cash generation capabilities.

Income Statement

Burke & Herbert Bank & Company shows a strong income statement with consistent revenue growth and solid profitability margins. The TTM data indicates a gross profit margin of 60.57% and a net profit margin of 12.17%, reflecting efficient cost management. Revenue growth rate is positive at 3.99%, indicating a healthy upward trajectory. EBIT and EBITDA margins are also robust, supporting operational efficiency.

Balance Sheet

The balance sheet presents a stable financial position with a debt-to-equity ratio of 0.98, which is manageable but slightly elevated compared to previous years. Return on equity is moderate at 7.68%, indicating decent profitability relative to shareholder equity. The equity ratio stands at 9.68%, suggesting a balanced asset structure but with room for improvement in equity financing.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 15.24% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.18, and the free cash flow to net income ratio is 0.96, reflecting effective conversion of income into cash flow. These metrics highlight the company's ability to sustain operations and invest in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	487.18M	396.93M	162.28M	127.48M	117.28M	120.00M
Gross Profit	330.01M	232.33M	108.93M	126.00M	114.06M	97.45M
EBITDA	150.54M	57.30M	27.93M	55.56M	43.65M	31.38M
Net Income	106.86M	35.71M	22.69M	44.01M	36.16M	26.50M
Balance Sheet
Total Assets	7.89B	7.81B	3.62B	3.56B	3.62B	3.42B
Cash, Cash Equivalents and Short-Term Investments	630.12M	467.69M	550.44M	1.42B	1.68B	1.39B
Total Debt	536.11M	476.88M	544.00M	686.20M	550.00M	450.00M
Total Liabilities	7.07B	7.08B	3.30B	3.29B	3.23B	3.04B
Stockholders Equity	822.23M	730.16M	314.75M	273.45M	389.63M	384.88M
Cash Flow
Free Cash Flow	144.50M	81.23M	28.26M	37.98M	53.87M	20.49M
Operating Cash Flow	154.22M	86.15M	42.51M	61.06M	54.95M	23.19M
Investing Cash Flow	-85.49M	123.56M	-43.17M	-127.41M	-384.13M	-405.74M
Financing Cash Flow	-228.44M	-118.54M	-5.14M	39.29M	177.83M	527.50M

Burke & Herbert Bank & Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 64.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 64.6 is below the 20-day moving average (MA) of 67.02, above the 50-day MA of 62.96, and above the 200-day MA of 58.95, indicating a neutral trend. The MACD of 0.97 indicates Positive momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BHRB.

Burke & Herbert Bank & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMBH	79 Outperform	$978.39M	11.10	9.74%	2.40%	3.54%	12.23%
ESQ	79 Outperform	$911.54M	18.58	19.19%	0.66%	17.98%	14.35%
BHRB	78 Outperform	$970.84M	8.97	13.70%	3.41%	53.68%	290.47%
OSBC	77 Outperform	$1.08B	13.34	9.24%	1.22%	10.42%	-18.32%
UVSP	76 Outperform	$967.32M	11.22	9.61%	2.56%	4.49%	20.44%
SBSI	74 Outperform	$950.69M	13.63	8.53%	4.55%	-4.08%	-16.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Burke & Herbert Bank & Company Corporate Events

Burke & Herbert Announces Merger With LINKBANCORP

On December 18, 2025, Burke & Herbert Financial Services Corp. and Pennsylvania-based LINKBANCORP, Inc. signed a definitive merger agreement under which LINKBANCORP will merge into Burke & Herbert in an all-stock transaction, followed immediately by the merger of LINKBANK into Burke & Herbert Bank & Trust Company, with Burke & Herbert and its bank remaining the surviving entities. Each share of LINKBANCORP common stock will be converted into 0.1350 shares of Burke & Herbert common stock in a transaction structured as a tax-free reorganization, with detailed treatment laid out for LNKB restricted stock, RSUs, options and warrants, including full vesting of most equity awards and the assumption of options and warrants by Burke & Herbert. Governance arrangements will expand Burke & Herbert’s boards to add directors from LINKBANCORP and bring senior LNKB and LINK executives into key roles at the surviving bank, reinforcing continuity and market expertise as Burke & Herbert deepens its footprint, particularly in Pennsylvania. The deal, unanimously approved by both boards, remains subject to shareholder approvals, multiple bank regulatory clearances, effectiveness of a registration statement and other customary closing conditions, and includes reciprocal support agreements from directors of both companies and a $14.2 million termination fee, signaling a strong commitment to completing a strategic combination that could enhance scale and competitive positioning in the regional banking sector. Separately, on December 18, 2025, Burke & Herbert amended and restated its bylaws to fix the board size between five and fifteen directors and to remove legacy provisions tied to its prior merger with Summit Financial Group, further aligning its governance structure with its current and prospective post-transaction profile.

Burke & Herbert Bank Amends Executive Employment Agreements

On October 28, 2025, Burke & Herbert Financial Services Corp. and its subsidiary Burke & Herbert Bank & Trust Company amended and restated employment agreements with CEO David P. Boyle and CFO Roy E. Halyama. These agreements, which include terms for salary, incentives, and benefits, aim to secure the executives’ continued leadership and align their interests with the company’s long-term goals. The agreements also include provisions for termination benefits and enforce compliance with company policies, potentially impacting the company’s operational stability and stakeholder confidence.

Burke & Herbert Reports Strong Q3 2025 Financial Results

On October 23, 2025, Burke & Herbert Financial Services Corp. announced its third-quarter 2025 financial results, reporting a net income of $29.7 million and a diluted EPS of $1.97. The company declared a regular quarterly cash dividend of $0.55 per share, payable on December 1, 2025, to shareholders of record as of November 14, 2025. The company demonstrated strong financial health with a loan-to-deposit ratio of 86.7%, ample liquidity totaling $4.3 billion, and robust capital ratios well above regulatory requirements. The company continues to expand its market presence, having opened a new branch in Bethesda, Maryland, and experiencing growth in newer markets like Fredericksburg and Richmond, Virginia.