BANKUNITED INC (BKU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BKU - US06652K1034 - Common Stock
47.465 USD
-0.14 (-0.3%)
BKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. BKU scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
- In the past 5 years BKU has always been profitable.
- BKU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BKU's Return On Assets of 0.75% is on the low side compared to the rest of the industry. BKU is outperformed by 62.14% of its industry peers.
- With a Return On Equity value of 8.70%, BKU perfoms like the industry average, outperforming 48.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 8.7% | ||
| ROIC | N/A |
ROA(3y)0.63%
ROA(5y)0.76%
ROE(3y)7.84%
ROE(5y)9.69%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of BKU (24.66%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of BKU has grown nicely.
- The Operating Margin and Gross Margin are not available for BKU so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 24.66% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.26%
PM growth 5Y2.38%
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 less shares outstanding
- The number of shares outstanding for BKU has been reduced compared to 5 years ago.
- BKU has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of BKU is 0.76, which is an excellent value as it means it would take BKU, only 0.76 years of fcf income to pay off all of its debts.
- BKU's Debt to FCF ratio of 0.76 is fine compared to the rest of the industry. BKU outperforms 73.37% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that BKU is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.11, BKU is in the better half of the industry, outperforming 66.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.92%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- BKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.23%, which is quite good.
- BKU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.69% yearly.
- The Revenue has been growing slightly by 7.87% in the past year.
- Measured over the past years, BKU shows a small growth in Revenue. The Revenue has been growing by 4.32% on average per year.
EPS 1Y (TTM)16.23%
EPS 3Y0.28%
EPS 5Y11.69%
EPS Q2Q%3.3%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y3.34%
Revenue growth 5Y4.32%
Sales Q2Q%8.98%
3.2 Future
- The Earnings Per Share is expected to grow by 6.18% 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 5.48% yearly.
EPS Next Y3.68%
EPS Next 2Y6.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.64%
Revenue Next 2Y6.34%
Revenue Next 3Y5.48%
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 decreasing.
- 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 13.26, the valuation of BKU can be described as correct.
- BKU's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of BKU to the average of the S&P500 Index (28.82), we can say BKU is valued rather cheaply.
- BKU is valuated correctly with a Price/Forward Earnings ratio of 12.79.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BKU indicates a slightly more expensive valuation: BKU is more expensive than 64.75% of the companies listed in the same industry.
- BKU is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
- 78.59% of the companies in the same industry are more expensive than BKU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.6
PEG (5Y)1.13
EPS Next 2Y6.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.61%, BKU has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.60, BKU has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BKU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
- The dividend of BKU has a limited annual growth rate of 5.76%.
- BKU has been paying a dividend for at least 10 years, so it has a reliable track record.
- BKU has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.76%
Div Incr Years5
Div Non Decr Years9
5.3 Sustainability
- 34.22% of the earnings are spent on dividend by BKU. This is a low number and sustainable payout ratio.
- BKU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.22%
EPS Next 2Y6.18%
EPS Next 3YN/A
BANKUNITED INC / BKU FAQ
What is the fundamental rating for BKU stock?
ChartMill assigns a fundamental rating of 4 / 10 to BKU.
Can you provide the valuation status for BANKUNITED INC?
ChartMill assigns a valuation rating of 4 / 10 to BANKUNITED INC (BKU). This can be considered as Fairly Valued.
Can you provide the profitability details for BANKUNITED INC?
BANKUNITED INC (BKU) has a profitability rating of 3 / 10.
What are the PE and PB ratios of BANKUNITED INC (BKU) stock?
The Price/Earnings (PE) ratio for BANKUNITED INC (BKU) is 13.26 and the Price/Book (PB) ratio is 1.18.
What is the earnings growth outlook for BANKUNITED INC?
The Earnings per Share (EPS) of BANKUNITED INC (BKU) is expected to grow by 3.68% in the next year.