Bankunited (BKU)
NYSE:BKU
Top Page
BankUnited
(NYSE:BKU)
Select Model
Select Model
Rating:69Neutral
Price Target:
$54.00
â–²(14.14% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
BankUnited (BKU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.46B
Dividend Yield2.71%
Average Volume (3M)838.53K
Price to Earnings (P/E)12.6
Beta (1Y)0.99
Revenue Growth-5.44%
EPS Growth45.47%
CountryUS
Employees1,662
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.90
Shares Outstanding73,638,610
10 Day Avg. Volume983,272
30 Day Avg. Volume838,533
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.11
Price to Sales (P/S)1.58
P/FCF Ratio9.46
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit4.95
Enterprise Value/Ebitda13.34
Forecast
1Y Price Target
$54.60Price Target Upside15.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.2
Revenue Forecast (FY)$1.18B
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 s...
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...
BankUnited Earnings Call Summary
Earnings Call Date:Dec 31, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial performance: strong core loan growth, meaningful deposit and NIDDA expansion, margin improvement, rising PPNR and diversified non-interest income. Management reiterated conservative guidance for FY2026 while authorizing substantial share repurchases and a dividend increase. Key negatives were episodic credit losses (including a $10 million fraud write-off), a one-time software charge, some spread compression on new production, and an uptick in brokered deposits. Overall, the positive items (growth in NII/NIM, deposits, core loans, PPNR expansion, capital actions and disciplined expense/investment strategy) materially outweigh the contained and largely one-off negatives.Positive Updates
Strong Quarterly and Adjusted EPS
Net income of $69.3 million, $0.90 per share in Q4; adjusted for a one-time software write-down adjusted EPS was $0.94. Management described double-digit EPS growth for FY2025 driven by double-digit PPNR and NIDDA growth.
Negative Updates
One-Time Software Write-Down
A strategic technology change resulted in a one-time write-down of previously capitalized software, which reduced reported net income in Q4 (adjusted EPS would be $0.94 excluding the charge).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Adjusted EPS
Net income of $69.3 million, $0.90 per share in Q4; adjusted for a one-time software write-down adjusted EPS was $0.94. Management described double-digit EPS growth for FY2025 driven by double-digit PPNR and NIDDA growth.
Read all positive updates
Company Guidance
Guidance for FY2026 calls for core loan growth of about 6% (residential/other down ~8%), total loan growth of 2–3%, NIDDA growth of ~12% (total deposits ex‑broker ~6%; brokered deposits ~16.6%), and a NIDDA mix rising from 31% toward the COVID peak of ~33–34%; net interest margin is expected to tick up modestly to ~3.20% from 3.06% (management assumes roughly 80% deposit beta on the two Fed cuts baked into the plan), total revenue growth of ~8% (fee income modestly down), expenses remaining controlled (mid‑single‑digit growth), and provision assumed roughly flat to 2025; capital actions include an additional $200M buyback (bringing available repurchase capacity to ~ $250M) and a 2¢ dividend increase, with a CET1 target around the mid‑11% range (≈11.5%).BankUnited Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
64
Positive
Cash Flow
70
Positive
| 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 | 1.97B | 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 | 358.61M | 433.78M | 657.50M | 1.29B | 1.19B |
| Operating Cash Flow | 358.61M | 433.78M | 657.50M | 1.29B | 1.22B |
| Investing Cash Flow | -214.43M | 409.71M | 980.57M | -2.12B | -1.64B |
| Financing Cash Flow | -417.52M | -940.66M | -1.62B | 1.08B | 334.87M |
BankUnited Technical Analysis
Positive
47.31
Price Trends
46.39
Positive
45.50
Positive
41.47
Positive
Market Momentum
0.43
Negative
62.05
Neutral
79.29
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 47.31 is above the 20-day moving average (MA) of 44.95, above the 50-day MA of 46.39, and above the 200-day MA of 41.47, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKU.
BankUnited Risk Analysis
BankUnited disclosed 42 risk factors in its most recent earnings report. BankUnited 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 0 New Risks
BankUnited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.12B | 13.59 | 13.70% | 2.96% | 6.29% | 28.28% | |
71 Outperform | $2.80B | 12.23 | 9.25% | 4.00% | -8.43% | 3.75% | |
69 Neutral | $3.46B | 12.64 | 8.99% | 2.71% | -5.44% | 45.47% | |
69 Neutral | $2.90B | 12.32 | 7.50% | 1.34% | 10.50% | -6.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $3.29B | 15.10 | 7.31% | 3.04% | 9.48% | 12.83% | |
61 Neutral | $2.99B | -6.78 | -11.48% | 4.41% | -55.53% | -387.04% |
* Financial Sector Average
BKU
BankUnited
47.31
17.72
59.86%
CVBF
Cvb Financial
20.49
3.92
23.67%
PRK
Park National
171.30
31.46
22.50%
SFNC
Simmons 1st Nat'l
20.57
3.08
17.60%
TOWN
TowneBank
35.62
5.19
17.04%
FBK
FB Financial
54.70
14.96
37.65%
BankUnited Corporate Events
Business Operations and StrategyFinancial Disclosures
BankUnited Highlights Strategy Ahead of KBW Conference Appearance
Positive
Feb 11, 2026
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 she...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
BankUnited boosts dividend and expands share repurchase plan
Positive
Jan 21, 2026
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 ...
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.