BankUnited (BKU) AI Stock Analysis

• Market Cap: $3.04B
• Dividend Yield: 3.05%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.08
• 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: 75,142,570
• 10 Day Avg. Volume: 1,154,618
• 30 Day Avg. Volume: 1,188,252
• 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: 1.72
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 12.91
• 1Y Price Target: $42.17
• Price Target Upside: 5.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.48
• Revenue Forecast (FY): $1.09B

• Rating: 73 Outperform
• Price Target: $45.00 ▲(12.50% Upside)

BankUnited's overall stock score is driven by strong technical indicators and positive earnings call sentiment, which highlight growth and strategic initiatives. Financial performance is solid but faces challenges in cash flow and operational efficiency. The valuation is reasonable, providing a balanced investment opportunity.

Positive Factors

Improved Profitability

The company's ability to exceed earnings expectations indicates strong operational performance and efficient cost management, which can sustain long-term profitability.

Balance Sheet Strength

Improved leverage management enhances financial stability and flexibility, allowing the company to better navigate economic fluctuations and invest in growth opportunities.

Noninterest Income Growth

Growth in noninterest income diversifies revenue streams and reduces reliance on interest income, providing a more stable financial foundation and resilience against interest rate fluctuations.

Negative Factors

Declining Loan Portfolio

A shrinking loan portfolio can limit future revenue growth and indicates potential challenges in maintaining competitive lending practices or attracting new borrowers.

Cash Flow Decline

A significant decline in cash flow growth may impact liquidity and the company's ability to fund operations, invest in growth, or return capital to shareholders.

Operational Efficiency Pressures

Pressure on operational efficiency can erode profitability over time, requiring strategic adjustments to cost structures and operational processes to maintain competitive margins.

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 shows strong revenue growth and improved profitability, supported by a healthier balance sheet with reduced leverage. However, declining cash flow growth and operational efficiency pressures present challenges.

Income Statement

BankUnited's income statement shows a solid revenue growth rate of 10.6% in the TTM, indicating strong top-line expansion. The gross profit margin is stable at around 47.4%, and the net profit margin has improved to 12.2%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while healthy, are lower than historical highs, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a significant improvement in the debt-to-equity ratio, decreasing from 1.29 to 0.79 in the TTM, indicating better leverage management. Return on equity has improved to 9.0%, showing enhanced shareholder returns. However, the equity ratio remains moderate, suggesting room for strengthening the capital structure.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth by 49.2% in the TTM, which could impact liquidity. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong at 1.0, suggesting efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.16B	2.02B	1.94B	1.31B	1.09B	1.20B
Gross Profit	1.03B	958.35M	873.03M	915.44M	996.96M	706.55M
EBITDA	406.01M	376.46M	311.14M	452.75M	527.88M	321.87M
Net Income	263.97M	232.47M	178.67M	284.97M	414.98M	197.85M
Balance Sheet
Total Assets	35.08B	35.24B	35.76B	37.03B	35.82B	35.01B
Cash, Cash Equivalents and Short-Term Investments	10.03B	491.12M	588.28M	572.65M	314.86M	397.72M
Total Debt	2.40B	3.64B	5.82B	6.33B	2.83B	4.03B
Total Liabilities	32.04B	32.43B	33.18B	34.59B	32.78B	32.03B
Stockholders Equity	3.03B	2.81B	2.58B	2.44B	3.04B	2.98B
Cash Flow
Free Cash Flow	419.25M	433.78M	657.50M	1.29B	1.19B	844.57M
Operating Cash Flow	419.25M	433.78M	657.50M	1.29B	1.22B	864.17M
Investing Cash Flow	467.77M	409.71M	980.57M	-2.12B	-1.64B	-2.62B
Financing Cash Flow	-1.22B	-940.66M	-1.62B	1.08B	334.87M	1.94B

BankUnited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.00
• 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 is above the 20-day moving average (MA) of 38.96, above the 50-day MA of 38.66, and above the 200-day MA of 36.04, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 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
BKU	73 Outperform	$3.04B	11.44	9.04%	3.05%	-5.44%	45.47%
CVBF	73 Outperform	$2.54B	12.60	9.10%	4.28%	-8.43%	3.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TOWN	64 Neutral	$2.66B	14.60	7.37%	3.12%	9.48%	12.83%
FBK	64 Neutral	$2.95B	25.76	5.85%	1.37%	10.50%	-6.22%
PRK	61 Neutral	$2.51B	14.36	13.69%	2.99%	6.29%	28.28%
SFNC	60 Neutral	$2.53B	-5.96	-12.42%	4.68%	-55.53%	-387.04%

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.