BankUnited (BKU) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: 3.1%
• Average Volume (3M): 737.76K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.26
• Revenue Growth: -2.80%
• EPS Growth: 51.85%
• Country: US
• Employees: 1,662
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 75,212,776
• 10 Day Avg. Volume: 549,126
• 30 Day Avg. Volume: 737,762
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 13.71
• 1Y Price Target: $42.57
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $41.00 ▲(5.83% Upside)

BankUnited's overall stock score reflects strong earnings performance and attractive valuation, supported by positive technical indicators. While financial performance shows solid profitability, challenges with revenue growth and cash flow sustainability need addressing. The strategic initiatives and stock buyback program indicate confidence in future growth, but risks associated with non-performing loans in the office sector remain.

Positive Factors

Financial performance

The strong quarter showcased group-high DDA growth and NIM expansion, alongside a $100MM buyback program, paving the way for over 10% ROTCE.

Mergers and acquisitions

BKU stands to benefit from an improving M&A environment, achieving the highest score in the analyst's scorecard.

Negative Factors

Credit risk

Credit issues emerged as the largest negative, with non-performing loans increasing 45% quarter-over-quarter, now comprising 1.57% of total loans.

Leadership changes

The transition of the CFO could delay potential M&A activities.

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 exhibits solid financial health with strong profitability metrics and efficient cash flow management. However, the high debt-to-equity ratio suggests potential leverage risks. The company is maintaining profitability while navigating revenue fluctuations, reflecting a resilient operational framework.

Income Statement

BankUnited's income statement shows moderate revenue growth with a slight decline in revenue from 2024 to TTM 2025. The gross profit margin remains robust at 49.1% in TTM 2025. The net profit margin has improved to 12.3% in TTM, indicating enhanced profitability. However, EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some cost pressures.

Balance Sheet

The balance sheet reflects a stable equity position with an equity ratio of 8.3% in TTM 2025. However, the debt-to-equity ratio is elevated at 1.08, indicating higher leverage, which may pose risks in a volatile market. Return on equity is strong at 8.4%, demonstrating effective use of shareholders' equity.

Cash Flow

Operating cash flow remains positive, with a sound operating cash flow to net income ratio of 1.58 in TTM 2025. The free cash flow generation is stable, although there is a decline in free cash flow from the previous year, resulting in a negative free cash flow growth rate.

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: 38.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 38.74 is above the 20-day moving average (MA) of 37.55, above the 50-day MA of 37.18, and above the 200-day MA of 36.36, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.37 is Negative, 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
FFBC	77 Outperform	$2.54B	10.53	9.77%	3.69%	4.62%	2.69%
PRK	76 Outperform	$2.76B	16.61	13.49%	2.79%	10.28%	22.73%
BKU	72 Outperform	$2.95B	11.37	8.98%	3.10%	-2.80%	51.85%
SFNC	71 Outperform	$3.01B	16.38	4.57%	4.07%	-0.30%	6.05%
TOWN	70 Outperform	$2.76B	15.91	8.07%	2.80%	8.34%	14.44%
FRME	69 Neutral	$2.40B	10.78	9.90%	3.42%	-1.18%	23.43%
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%

BankUnited Corporate Events

BankUnited Announces $100M Share Repurchase Program

On July 22, 2025, BankUnited‘s Board of Directors authorized a share repurchase program of up to $100 million and the redemption of $400 million in senior notes due November 2025. The company reported strong financial results for the second quarter of 2025, with a net income increase of 18% from the previous quarter and a 25% increase compared to the same period in 2024. The company also saw improvements in net interest margin, deposit growth, and a decline in criticized and classified loans, indicating a robust financial position.

BankUnited Approves Key Proposals at Annual Meeting

On May 22, 2025, BankUnited, Inc. held its annual meeting of shareholders where three key proposals were voted on. The election of nine directors to the Board was approved, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025, and the compensation of the Company’s named executive officers was approved.