Burke & Herbert Bank & Trust Company (BHRB)
NASDAQ:BHRB
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Burke & Herbert Bank & Company
(NASDAQ:BHRB)
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Rating:65Neutral
Price Target:
$67.00
â–²(1.13% Upside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by solid financial quality (strong profitability and improved leverage, but with TTM revenue and cash-flow softness) and a very attractive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technical momentum indicators and some execution risk from the recently completed merger integration.
Positive Factors
Strong Profitability
Sustained TTM net margin near 24% and healthy ROE (~14%) indicate durable earnings power and operational efficiency. This margin profile supports dividend capacity and internal capital generation, helping the bank absorb cyclical credit shocks and fund organic growth over the medium term.
Negative Factors
Revenue & Free Cash Flow Softness
Top-line weakness and a recent decline in free cash flow (despite FCF near 88% of net income historically) signal revenue volatility and pressure on cash conversion. Persistent revenue softness would constrain reinvestment, dividend coverage, and resilience through slower economic periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Sustained TTM net margin near 24% and healthy ROE (~14%) indicate durable earnings power and operational efficiency. This margin profile supports dividend capacity and internal capital generation, helping the bank absorb cyclical credit shocks and fund organic growth over the medium term.
Read all positive factors
Burke & Herbert Bank & Company (BHRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend Yield3.49%
Average Volume (3M)65.44K
Price to Earnings (P/E)8.6
Beta (1Y)0.86
Revenue Growth1.77%
EPS Growth119.62%
CountryUS
Employees814
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)7.75
Shares Outstanding20,149,805
10 Day Avg. Volume113,149
30 Day Avg. Volume65,441
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.10
Price to Sales (P/S)1.92
P/FCF Ratio9.81
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit4.31
Enterprise Value/Ebitda9.37
Forecast
1Y Price Target
$72.67Price Target Upside9.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)7.91
Revenue Forecast (FY)$452.50M
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, an...
How the Company Makes Money
BHRB primarily earns money through (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets (primarily loans to consumers and businesses, and potentiall...
Burke & Herbert Bank & Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 486.10M | 491.11M | 396.93M | 162.28M | 127.48M | 119.13M |
| Gross Profit | 340.17M | 340.51M | 232.33M | 108.93M | 126.00M | 115.92M |
| EBITDA | 156.58M | 144.95M | 57.30M | 27.93M | 55.56M | 40.44M |
| Net Income | 117.46M | 117.32M | 35.71M | 22.69M | 44.01M | 36.16M |
Balance Sheet | ||||||
| Total Assets | 7.93B | 7.92B | 7.81B | 3.62B | 3.56B | 3.62B |
| Cash, Cash Equivalents and Short-Term Investments | 69.59M | 1.67B | 467.69M | 550.44M | 1.42B | 1.68B |
| Total Debt | 613.84M | 537.49M | 476.88M | 544.00M | 686.20M | 550.00M |
| Total Liabilities | 7.06B | 7.07B | 7.08B | 3.30B | 3.29B | 3.23B |
| Stockholders Equity | 864.50M | 854.65M | 730.16M | 314.75M | 273.45M | 389.63M |
Cash Flow | ||||||
| Free Cash Flow | 84.99M | 96.23M | 81.23M | 28.26M | 37.98M | 53.87M |
| Operating Cash Flow | 96.79M | 107.93M | 86.15M | 42.51M | 61.06M | 54.95M |
| Investing Cash Flow | -126.86M | 136.72M | 123.56M | -43.17M | -127.41M | -384.13M |
| Financing Cash Flow | -49.18M | -90.84M | -118.54M | -5.14M | 39.29M | 177.83M |
Burke & Herbert Bank & Company Technical Analysis
Positive
66.25
Price Trends
64.62
Positive
64.69
Positive
62.41
Positive
Market Momentum
0.66
Negative
63.10
Neutral
78.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHRB, the sentiment is Positive. The current price of 66.25 is above the 20-day moving average (MA) of 63.33, above the 50-day MA of 64.62, and above the 200-day MA of 62.41, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHRB.
Burke & Herbert Bank & Company Risk Analysis
Burke & Herbert Bank & Company disclosed 53 risk factors in its most recent earnings report. Burke & Herbert Bank & Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our shareholders and LNKB shareholders will have reduced ownership and voting interest in the continuing corporation after the consummation of the LNKB Merger and will exercise less influence over management. Q4, 2025
2.
The dilution caused by the issuance of shares of the Company's Common Stock in connection with the LNKB Merger may adversely affect the market price of the Company's Common Stock. Q4, 2025
3.
Issuance of shares of the Company's Common Stock in connection with the LNKB Merger may adversely affect the market price of the Company's Common Stock. Q4, 2025
Burke & Herbert Bank & Company Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.05B | 8.86 | 10.19% | 2.59% | 3.92% | 25.09% | |
74 Outperform | $1.05B | 10.38 | 10.20% | 1.24% | 26.26% | -8.61% | |
73 Outperform | $910.86M | 18.16 | 18.23% | 0.66% | 20.11% | 11.08% | |
70 Outperform | $1.11B | 9.69 | 9.93% | 2.43% | 5.91% | 17.81% | |
68 Neutral | $950.57M | 9.94 | 8.49% | 4.59% | -6.76% | -18.82% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.24B | 8.58 | 14.15% | 3.49% | 1.77% | 119.62% |
* Financial Sector Average
BHRB
Burke & Herbert Bank & Company
61.47
5.91
10.64%
OSBC
Old Second Bancorp
20.43
3.59
21.33%
SBSI
Southside Bancshares
31.95
3.58
12.62%
UVSP
Univest Of Pennsylvania
37.63
7.70
25.71%
FMBH
First Mid-Illinois Bancshares
41.79
5.83
16.20%
ESQ
Esquire Financial Holdings
105.43
14.47
15.91%
Burke & Herbert Bank & Company Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Burke & Herbert Completes LINKBANCORP Merger, Expands Leadership
Positive
May 1, 2026
On May 1, 2026, Burke Herbert Financial Services Corp. completed its previously announced merger with LINKBANCORP, Inc., followed immediately by the merger of LINKBANK into Burke Herbert Bank Trust Company, with Burke Herbert and its bank subs...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Burke & Herbert Advances LINKBANCORP Merger After Approval
Positive
Apr 23, 2026
Burke Herbert Financial Services Corp., parent of Burke Herbert Bank Trust Company, reported first-quarter 2026 net income applicable to common shares of $27.1 million, or $1.79 per diluted share, down from $30.0 million and $1.98 in the prior ...
Business Operations and StrategyM&A Transactions
Burke & Herbert Gains Final Approvals for LINKBANCORP Merger
Positive
Apr 13, 2026
On April 13, 2026, Burke Herbert Financial Services Corp. and LINKBANCORP, Inc. announced they had obtained all required regulatory approvals or waivers for LINK’s merger into Burke Herbert. The deal, originally agreed on December 18, 2025...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Burke & Herbert Shareholders Approve LINKBANCORP Merger Plan
Positive
Mar 25, 2026
On March 25, 2026, Burke Herbert Financial Services Corp. shareholders met in a special meeting to vote on the proposed merger under which LINKBANCORP, Inc. will merge into Burke Herbert, with Burke Herbert as the surviving corporation. Of 15,0...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
Burke & Herbert Advances LINKBANCORP Merger With Board Refresh
Positive
Mar 13, 2026
On March 9, 2026, Burke Herbert’s board moved to implement its planned merger with LINKBANCORP by appointing LNKB directors Diane Poillon and Kristen Snyder as future independent directors of the combined company, effective upon closing, wi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.