Burke & Herbert Bank & Trust Company (BHRB)
NASDAQ:BHRB
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Burke & Herbert Bank & Company
(NASDAQ:BHRB)
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Rating:75Outperform
Price Target:
$73.00
â–²(11.26% Upside)
Action:UpgradedDate:04/14/26
The score is driven primarily by improved 2025 financial results and an attractive valuation (low P/E with a solid dividend). Technicals are supportive but show some near-term stretch, while merger-related corporate events are a positive catalyst. The main constraint is cash-flow inconsistency and historical earnings volatility.
Positive Factors
Stronger 2025 profitability
The sharp 2025 rebound in revenue, margin and ROE signals materially improved core earnings power versus prior years. Sustained higher margins and returns enhance the bank's ability to fund organic growth, dividends and capital needs, strengthening franchise economics over the medium term.
Negative Factors
Choppy cash generation
Significant free-cash-flow decline and falling operating cash flow highlight inconsistent cash conversion. Persistent variability in cash generation undermines reliable funding of dividends, tech/branch investments and merger integration, raising financing and execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger 2025 profitability
The sharp 2025 rebound in revenue, margin and ROE signals materially improved core earnings power versus prior years. Sustained higher margins and returns enhance the bank's ability to fund organic growth, dividends and capital needs, strengthening franchise economics over the medium term.
Read all positive factors
Burke & Herbert Bank & Company (BHRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$979.26M
Dividend Yield3.49%
Average Volume (3M)65.44K
Price to Earnings (P/E)7.8
Beta (1Y)0.82
Revenue Growth53.68%
EPS Growth290.47%
CountryUS
Employees814
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.98
Shares Outstanding15,028,524
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 Cap1.50
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$75.00Price Target Upside14.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)7.4
Revenue Forecast (FY)$453.45M
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
78
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 491.11M | 396.93M | 162.28M | 127.48M | 119.13M |
| Gross Profit | 340.51M | 232.33M | 108.93M | 126.00M | 115.92M |
| EBITDA | 144.95M | 57.30M | 27.93M | 55.56M | 40.44M |
| Net Income | 117.32M | 35.71M | 22.69M | 44.01M | 36.16M |
Balance Sheet | |||||
| Total Assets | 7.92B | 7.81B | 3.62B | 3.56B | 3.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.67B | 467.69M | 550.44M | 1.42B | 1.68B |
| Total Debt | 537.49M | 476.88M | 544.00M | 686.20M | 550.00M |
| Total Liabilities | 7.07B | 7.08B | 3.30B | 3.29B | 3.23B |
| Stockholders Equity | 854.65M | 730.16M | 314.75M | 273.45M | 389.63M |
Cash Flow | |||||
| Free Cash Flow | 96.23M | 81.23M | 28.26M | 37.98M | 53.87M |
| Operating Cash Flow | 107.93M | 86.15M | 42.51M | 61.06M | 54.95M |
| Investing Cash Flow | 136.72M | 123.56M | -43.17M | -127.41M | -384.13M |
| Financing Cash Flow | -90.84M | -118.54M | -5.14M | 39.29M | 177.83M |
Burke & Herbert Bank & Company Technical Analysis
Positive
65.61
Price Trends
64.71
Positive
64.45
Positive
62.27
Positive
Market Momentum
0.30
Negative
62.22
Neutral
86.86
Negative
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 65.61 is above the 20-day moving average (MA) of 62.54, above the 50-day MA of 64.71, and above the 200-day MA of 62.27, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 86.86 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $979.26M | 7.80 | 14.60% | 3.49% | 53.68% | 290.47% | |
75 Outperform | $977.17M | 16.46 | 18.78% | 0.66% | 17.98% | 14.35% | |
73 Outperform | $1.04B | 10.37 | 9.82% | 2.59% | 4.49% | 20.44% | |
73 Outperform | $1.05B | 10.15 | 9.74% | 2.43% | 3.54% | 12.23% | |
68 Neutral | $1.12B | 8.92 | 10.11% | 1.24% | 10.42% | -18.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
53 Neutral | $981.54M | 13.23 | 8.53% | 4.59% | -4.08% | -16.80% |
* Financial Sector Average
BHRB
Burke & Herbert Bank & Company
65.61
17.22
35.59%
OSBC
Old Second Bancorp
21.53
6.97
47.82%
SBSI
Southside Bancshares
33.03
6.71
25.50%
UVSP
Univest Of Pennsylvania
37.14
11.27
43.56%
FMBH
First Mid-Illinois Bancshares
43.58
12.47
40.10%
ESQ
Esquire Financial Holdings
113.22
34.96
44.68%
Burke & Herbert Bank & Company Corporate Events
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...
Executive/Board Changes
Burke & Herbert Announces Leadership Transition and New Incentives
Positive
Jan 28, 2026
On January 22, 2026, Burke Herbert Financial Services Corp. announced that President and director H. Charles Maddy, III will retire as President and will not stand for re-election to the company’s board at the 2026 annual meeting, with his ...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Burke & Herbert Bank Reports Strong Q4 2025 Earnings
Positive
Jan 22, 2026
On January 22, 2026, Burke Herbert Financial Services Corp. reported solid fourth-quarter and full-year 2025 results, with net income applicable to common shares of $30.0 million, or $1.98 per diluted share, for the quarter and $116.4 million, or...
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.