BankUnited (BKU) AI Stock Analysis

• Market Cap: $3.59B
• Dividend Yield: 2.71%
• Average Volume (3M): 889.25K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.00
• Revenue Growth: -5.44%
• EPS Growth: 45.47%
• Country: US
• Employees: 1,662
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.90
• Shares Outstanding: 75,142,570
• 10 Day Avg. Volume: 564,942
• 30 Day Avg. Volume: 889,247
• PEG Ratio: 0.85
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 7.39
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 13.14
• 1Y Price Target: $53.80
• Price Target Upside: 8.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.12
• Revenue Forecast (FY): $1.18B

• Rating: 69 Neutral
• Price Target: $54.00 ▲(9.14% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven by improved balance-sheet strength and solid cash generation, supported by constructive price trends and a reasonable valuation (P/E 13.55 with a 2.55% yield). Offsetting these positives are the income statement concerns—especially the sharp 2025 revenue decline and margin compression—though the latest earnings call guidance and shareholder-return actions (buyback and dividend increase) add support.

Positive Factors

Improved leverage / capital posture

Material de‑risking of the balance sheet (debt/equity down to 0.61 in 2025) and rising equity materially reduce solvency and funding risk. A stronger capital base supports continued lending, cushions credit cycles, and creates capacity for disciplined buybacks/dividends without threatening regulatory ratios.

Consistent cash generation

Reliable operating cash flow that closely tracks net income indicates high earnings quality and conversion. Durable cash generation funds organic growth, technology investment, and shareholder returns (dividends/repurchases) while providing a buffer for provisioning and cyclical stress without immediate external financing.

Deposit & core loan momentum

Sustained growth in low‑cost, noninterest‑bearing deposits improves funding mix and reduces funding costs structurally. Combined with consistent core loan growth, this supports net interest income and margin resilience, enabling durable PPNR expansion and funding flexibility through business cycles.

Negative Factors

Severe 2025 revenue drop & margin compression

A dramatic revenue fall and multi‑year margin compression materially weaken the sustainability of reported earnings. Even if partly driven by one‑offs, such pronounced swings signal underlying business mix shifts or one-time disruptions that could impede reinvestment, ROE recovery, and durable dividend/buyback capacity.

Elevated credit costs and episodic losses

Persistently higher charge‑offs and elevated provisioning point to asset quality pressure in commercial pockets. Episodic losses raise volatility in earnings and may require higher loan‑loss reserves, compressing capital generation and reducing the bank's ability to sustain aggressive shareholder returns through extended credit cycles.

Higher brokered deposit usage

Increased reliance on brokered funding raises rollover and concentration risk and can be more rate‑sensitive than core deposits. Structurally higher brokered balances can pressure net interest margin during tighter funding markets and warrant monitoring of funding stability over medium term.

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 through various key streams, predominantly from net interest income, which is derived from the interest earned on loans and investments minus the interest paid on deposits. The bank's loan portfolio includes commercial real estate loans, commercial and industrial loans, and residential mortgages, which contribute significantly to its earnings. Additionally, BankUnited earns non-interest income from fees associated with deposit accounts, transaction services, and wealth management. Strategic partnerships with other financial institutions and businesses enhance its service offerings and customer reach, further bolstering revenue. The bank's focus on growing its loan portfolio while managing interest rate risk and maintaining a strong deposit base is crucial to its overall financial performance.

BankUnited Financial Statement Overview

Summary

Balance sheet de-risking is a clear positive (debt-to-equity down to 0.61 in 2025 with growing equity) and cash generation is consistently positive with free cash flow tracking net income (FCF/NI ~1.0 in 2023–2025). The main drag is income statement quality: 2025 shows an unusually severe revenue decline (-96.1%) alongside multi-year margin compression (net margin 37.9% in 2021 to 12.5% in 2025), raising sustainability concerns despite higher net income versus 2023.

Income Statement

Revenue improved from 2020 through 2024, but 2025 shows a sharp revenue decline (2025 revenue growth: -96.1%), which materially weakens the near-term earnings outlook. Profitability has also compressed versus earlier years: net margin fell from 37.9% (2021) to 12.5% (2025), and operating profitability is well below the 2021–2022 peak despite a modest lift versus 2023–2024. Net income rose from 2023 to 2025, but the combination of margin compression and the 2025 revenue drop makes earnings quality and sustainability the key concern.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity declining from 2.60 (2022) and 2.26 (2023) to 1.29 (2024) and 0.61 (2025), suggesting a stronger capital posture and reduced balance-sheet risk. Equity has also grown over time, supporting stability. That said, returns remain moderate for a regional bank (return on equity: 8.8% in 2025 vs. 13.7% in 2021), indicating the balance sheet is safer but currently less productive than in prior peak years.

Cash Flow

Cash generation is solid and consistent, with operating cash flow positive every year and improving from 2024 to 2025 ($433.8M to $459.3M). Free cash flow closely tracks accounting earnings (free cash flow to net income: 1.0 in 2023–2025), which supports earnings quality. Volatility is the main drawback: free cash flow declined in 2022→2023 and 2023→2024 before rebounding strongly in 2025 (free cash flow growth: +9.558).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.14B	2.02B	1.94B	1.31B	1.09B
Gross Profit	1.06B	958.35M	873.03M	915.44M	996.96M
EBITDA	393.13M	376.46M	311.14M	452.75M	527.88M
Net Income	268.37M	232.47M	178.67M	284.97M	414.98M
Balance Sheet
Total Assets	35.04B	35.24B	35.76B	37.03B	35.82B
Cash, Cash Equivalents and Short-Term Investments	217.78M	491.12M	588.28M	572.65M	314.86M
Total Debt	1.87B	3.64B	5.82B	6.33B	2.83B
Total Liabilities	31.99B	32.43B	33.18B	34.59B	32.78B
Stockholders Equity	3.05B	2.81B	2.58B	2.44B	3.04B
Cash Flow
Free Cash Flow	459.32M	433.78M	657.50M	1.29B	1.19B
Operating Cash Flow	459.32M	433.78M	657.50M	1.29B	1.22B
Investing Cash Flow	22.50M	409.71M	980.57M	-2.12B	-1.64B
Financing Cash Flow	-532.95M	-940.66M	-1.62B	1.08B	334.87M

BankUnited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 49.48 is above the 20-day moving average (MA) of 49.16, above the 50-day MA of 47.15, and above the 200-day MA of 39.95, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.70 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
PRK	73 Outperform	$3.01B	14.99	13.69%	2.96%	6.29%	28.28%
CVBF	72 Outperform	$2.66B	12.91	21.27%	4.00%	-8.43%	3.75%
TOWN	70 Outperform	$3.18B	15.60	7.37%	3.04%	9.48%	12.83%
BKU	69 Neutral	$3.59B	13.55	8.97%	2.71%	-5.44%	45.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FBK	64 Neutral	$3.02B	23.05	6.98%	1.34%	10.50%	-6.22%
SFNC	60 Neutral	$2.95B	-7.50	-11.44%	4.41%	-55.53%	-387.04%

BankUnited Corporate Events

BankUnited Highlights Strategy Ahead of KBW Conference Appearance

On February 11, 2026, BankUnited posted an investor presentation outlining its strategy and performance ahead of its appearance at the KBW Winter Financial Services Conference on February 12, 2026. The materials highlight a $35 billion balance sheet, a conservative capital profile with a 12.3% CET1 ratio, and a predominantly Florida-based deposit base, underscoring the bank’s positioning as a leading regional player.

The presentation emphasizes the bank’s transformation of its funding mix toward core, relationship-based deposits and strong growth in noninterest-bearing demand deposits, where it compares favorably with peer regional banks. It also details a lending model increasingly focused on higher-yielding commercial and specialty verticals, disciplined expense management, and a track record of shareholder returns that have outperformed the Nasdaq regional banking index over multiple time horizons.

The most recent analyst rating on (BKU) stock is a Sell with a $49.00 price target. To see the full list of analyst forecasts on BankUnited stock, see the BKU Stock Forecast page.

BankUnited boosts dividend and expands share repurchase plan

On January 21, 2026, BankUnited reported that fourth-quarter 2025 net income reached $69.3 million, or $0.90 per diluted share, despite a one-time software write-down, while adjusted net income was $72.0 million, or $0.94 per share; for full-year 2025, net income rose 15% from 2024 to $268.4 million, with earnings per share climbing to $3.53 and return on assets improving to 0.77%. The bank posted a 6-basis-point sequential expansion in net interest margin in the fourth quarter to 3.06% and an 8% year-over-year increase in net interest income for both the quarter and the full year, driven by strong core loan growth, a $735 million quarterly and $1.5 billion annual increase in total deposits, a 20% annual rise in non-interest-bearing deposits, and lower average deposit costs alongside a $1.7 billion reduction in wholesale funding. Credit quality remained manageable, with criticized and classified loans declining and non-performing asset ratios holding near 1.08%, although net charge-offs were somewhat elevated and the bank boosted its provision for credit losses to $25.6 million in the fourth quarter to build reserves, particularly for certain commercial and office exposures. Capital ratios stayed solid, including a 12.3% CET1 ratio and 10% year-over-year growth in tangible book value per share to $40.14, enabling the board on January 20, 2026 to authorize up to $200 million of additional share repurchases—on top of an existing authorization—and to raise the quarterly dividend by $0.02 per share, signaling management’s confidence in the bank’s earnings power and capacity to return more capital to shareholders while continuing to support balance sheet growth.

The most recent analyst rating on (BKU) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on BankUnited stock, see the BKU Stock Forecast page.