BankUnited (BKU) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.17
• Revenue Growth: -2.80%
• EPS Growth: 51.85%
• Country: US
• Employees: 1,662
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.95
• Shares Outstanding: 75,212,776
• 10 Day Avg. Volume: 1,407,696
• 30 Day Avg. Volume: 1,068,123
• 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: 2.02
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 13.71
• 1Y Price Target: $42.13
• Price Target Upside: 14.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $40.00 ▲(8.58% Upside)

BankUnited's overall stock score reflects strong earnings performance and attractive valuation, offset by technical weaknesses and challenges in revenue growth. The optimistic outlook from the earnings call supports future growth prospects, while the current technical indicators suggest caution in the short term.

Positive Factors

Noninterest Income Growth

The significant growth in noninterest income indicates successful diversification of revenue streams, reducing reliance on traditional interest income and enhancing financial stability.

Capital Strength

Strong capital levels and increasing tangible book value per share reflect robust financial health, providing a solid foundation for future growth and resilience against economic fluctuations.

Expansion in Tampa

The new office in Tampa signifies strategic expansion in a growing market, enhancing BankUnited's presence and capabilities in corporate and commercial banking services.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a risk to long-term profitability and market competitiveness, necessitating strategic initiatives to revitalize growth and maintain market position.

Loan Portfolio Decline

The decline in the loan portfolio, particularly in commercial real estate and industrial segments, could impact future interest income and limit growth opportunities.

Free Cash Flow Decline

A decline in free cash flow growth may constrain liquidity and limit the bank's ability to invest in growth initiatives or weather economic downturns.

BankUnited Business Overview & Revenue Model

Company Description

BankUnited, Inc. (BKU) is a bank holding company based in the United States, primarily focused on providing a range of financial services including commercial banking, retail banking, and mortgage banking. The company operates through its wholly-owned subsidiary, BankUnited, N.A., and serves a diverse customer base that includes individuals, businesses, and government entities. The bank offers various products such as checking and savings accounts, loans, credit cards, and treasury management services, primarily in the southeastern and northeastern regions of the U.S.

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 demonstrates solid profitability and operational efficiency, but faces challenges with revenue growth and cash flow sustainability. The company has improved its leverage position, which is a positive sign for financial stability. Continued focus on revenue growth and cash flow management will be crucial for future success.

Income Statement

BankUnited's income statement shows mixed results. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains healthy gross and net profit margins, suggesting efficient operations. The EBIT and EBITDA margins are stable, reflecting consistent operational performance despite revenue challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has improved from previous years, indicating better leverage management. Return on equity is reasonable, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced approach to asset financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which could impact future liquidity. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations to cover net income. The free cash flow to net income ratio remains strong, reflecting good cash conversion.

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: Negative
• Last Price: 36.84
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 36.84 is below the 20-day moving average (MA) of 38.06, below the 50-day MA of 38.11, and above the 200-day MA of 35.93, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKU.

BankUnited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVBF	71 Outperform	$2.62B	13.01	9.30%	4.27%	-5.14%	-0.70%
SFNC	68 Neutral	$2.65B	14.20	-12.42%	4.72%	-55.54%	-386.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BKU	68 Neutral	$2.78B	10.64	8.98%	3.31%	-2.80%	51.85%
PRK	67 Neutral	$2.55B	15.08	13.49%	2.99%	10.28%	22.73%
TOWN	64 Neutral	$2.74B	14.64	8.07%	3.10%	8.34%	14.44%
FBK	64 Neutral	$2.87B	24.96	5.85%	1.36%	10.80%	-6.22%

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.