BANKUNITED INC (BKU) Stock Fundamental Analysis
NYSE:BKU - New York Stock Exchange, Inc. - US06652K1034 - Common Stock - Currency: USD
BKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 393 industry peers in the Banks industry. BKU has a bad profitability rating. Also its financial health evaluation is rather negative. BKU is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BKU had positive earnings in the past year.
In the past year BKU had a positive cash flow from operations.
Each year in the past 5 years BKU has been profitable.
In the past 5 years BKU always reported a positive cash flow from operatings.
1.2 Ratios
BKU has a worse Return On Assets (0.69%) than 62.60% of its industry peers.
BKU has a Return On Equity (8.24%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 8.24% | ||
| ROIC | N/A |
ROA(3y)0.63%
ROA(5y)0.72%
ROE(3y)8.8%
ROE(5y)9.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 23.24%, BKU is in line with its industry, outperforming 48.09% of the companies in the same industry.
BKU's Profit Margin has declined in the last couple of years.
BKU does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.24% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-19.98%
PM growth 5Y-7.51%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, BKU has more shares outstanding
BKU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BKU is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BKU is 1.85, which is an excellent value as it means it would take BKU, only 1.85 years of fcf income to pay off all of its debts.
BKU has a Debt to FCF ratio (1.85) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.24 indicates that BKU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, BKU is not doing good in the industry: 63.36% of the companies in the same industry are doing better.
Although BKU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.72%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.00% over the past year.
Measured over the past years, BKU shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.70% on average per year.
BKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
The Revenue has been growing slightly by 2.40% on average over the past years.
EPS 1Y (TTM)24%
EPS 3Y-9.61%
EPS 5Y-0.7%
EPS Q2Q%26.39%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y2.91%
Revenue growth 5Y2.4%
Sales Q2Q%9.48%
3.2 Future
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
BKU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y5.87%
EPS Next 2Y7.12%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year7.81%
Revenue Next 2Y7.12%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.99, the valuation of BKU can be described as reasonable.
BKU's Price/Earnings ratio is a bit cheaper when compared to the industry. BKU is cheaper than 65.39% of the companies in the same industry.
BKU is valuated cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.61, the valuation of BKU can be described as very reasonable.
BKU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BKU to the average of the S&P500 Index (35.34), we can say BKU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
BKU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BKU is cheaper than 84.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKU does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y7.12%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, BKU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, BKU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BKU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of BKU has a limited annual growth rate of 5.76%.
BKU has paid a dividend for at least 10 years, which is a reliable track record.
As BKU did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.76%
Div Incr Years5
Div Non Decr Years9
5.3 Sustainability
BKU pays out 36.44% of its income as dividend. This is a sustainable payout ratio.
The dividend of BKU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.44%
EPS Next 2Y7.12%
EPS Next 3Y7.88%
37.49
-0.77 (-2.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners102.6%
Inst Owner Change-1.13%
Ins Owners0.8%
Ins Owner Change-0.52%
Market Cap2.82B
Analysts67.14
Price Target43.33 (15.58%)
Short Float %4.31%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.15
Dividend Growth(5Y)5.76%
DP36.44%
Div Incr Years5
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.06%
Min EPS beat(2)4.44%
Max EPS beat(2)25.68%
EPS beat(4)4
Avg EPS beat(4)12.14%
Min EPS beat(4)4.44%
Max EPS beat(4)25.68%
EPS beat(8)6
Avg EPS beat(8)6.41%
EPS beat(12)7
Avg EPS beat(12)0.25%
EPS beat(16)10
Avg EPS beat(16)2.28%
Revenue beat(2)1
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)0.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)1.68%
Revenue beat(8)2
Avg Revenue beat(8)-4.01%
Revenue beat(12)2
Avg Revenue beat(12)-3.8%
Revenue beat(16)3
Avg Revenue beat(16)-3.11%
PT rev (1m)5.41%
PT rev (3m)5.34%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.61 | ||
| P/S | 2.75 | ||
| P/FCF | 7.35 | ||
| P/OCF | 7.35 | ||
| P/B | 0.97 | ||
| P/tB | 1 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.41
EY9.1%
EPS(NY)3.53
Fwd EY9.43%
FCF(TTM)5.1
FCFY13.61%
OCF(TTM)5.1
OCFY13.61%
SpS13.65
BVpS38.52
TBVpS37.49
PEG (NY)1.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 8.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.24% | ||
| GM | N/A | ||
| FCFM | 37.36% |
ROA(3y)0.63%
ROA(5y)0.72%
ROE(3y)8.8%
ROE(5y)9.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-19.98%
PM growth 5Y-7.51%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 160.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC14.72%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)342.56%
Profit Quality(5y)352.42%
High Growth Momentum
Growth
EPS 1Y (TTM)24%
EPS 3Y-9.61%
EPS 5Y-0.7%
EPS Q2Q%26.39%
EPS Next Y5.87%
EPS Next 2Y7.12%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)8.47%
Revenue growth 3Y2.91%
Revenue growth 5Y2.4%
Sales Q2Q%9.48%
Revenue Next Year7.81%
Revenue Next 2Y7.12%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.76%
FCF growth 3Y-28.28%
FCF growth 5Y-5.38%
OCF growth 1Y-60.76%
OCF growth 3Y-29.16%
OCF growth 5Y-7.36%