BANKUNITED INC (BKU) Stock Fundamental Analysis
USA - NYSE:BKU - US06652K1034 - Common Stock
39.32 USD
+0.02 (+0.05%)
39.32 USD
0 (0%)
Taking everything into account, BKU scores 4 out of 10 in our fundamental rating. BKU was compared to 392 industry peers in the Banks industry. Both the profitability and financial health of BKU have multiple concerns. 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.
BKU had positive earnings in each of the past 5 years.
Each year in the past 5 years BKU had a positive operating cash flow.
1.2 Ratios
BKU has a Return On Assets (0.71%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.58%, BKU perfoms like the industry average, outperforming 52.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 8.58% | ||
| 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
The Profit Margin of BKU (24.13%) is comparable to the rest of the industry.
BKU's Profit Margin has declined in the last couple of years.
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) | 24.13% | ||
| 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
The number of shares outstanding for BKU has been reduced compared to 5 years ago.
BKU has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BKU is 1.94, which is an excellent value as it means it would take BKU, only 1.94 years of fcf income to pay off all of its debts.
BKU's Debt to FCF ratio of 1.94 is in line compared to the rest of the industry. BKU outperforms 49.74% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that BKU is not too dependend on debt financing.
BKU has a Debt to Equity ratio of 0.24. This is in the lower half of the industry: BKU underperforms 62.50% of its industry peers.
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 | 1.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.62%
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 24.00%, which is quite impressive.
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.
The Revenue has grown by 8.47% in the past year. This is quite good.
BKU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
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
BKU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.62% yearly.
Based on estimates for the next years, BKU will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y12.47%
EPS Next 2Y8.75%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue Next Year7.91%
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 11.53, the valuation of BKU can be described as reasonable.
Based on the Price/Earnings ratio, BKU is valued a bit cheaper than the industry average as 64.80% of the companies are valued more expensively.
BKU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
BKU is valuated reasonably with a Price/Forward Earnings ratio of 10.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKU is on the same level as its industry peers.
BKU is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BKU indicates a rather cheap valuation: BKU is cheaper than 82.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BKU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y8.75%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, BKU has a reasonable but not impressive dividend return.
BKU's Dividend Yield is comparable with the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 2.38, BKU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
34.96% of the earnings are spent on dividend by BKU. This is a low number and sustainable payout ratio.
The dividend of BKU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.96%
EPS Next 2Y8.75%
EPS Next 3Y9.62%
39.32
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners102.6%
Inst Owner Change3.33%
Ins Owners0.8%
Ins Owner Change-1.99%
Market Cap2.96B
Analysts67.14
Price Target43.88 (11.6%)
Short Float %3.41%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.15
Dividend Growth(5Y)5.76%
DP34.96%
Div Incr Years5
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.89%
Min EPS beat(2)4.44%
Max EPS beat(2)15.35%
EPS beat(4)4
Avg EPS beat(4)13.42%
Min EPS beat(4)4.44%
Max EPS beat(4)25.68%
EPS beat(8)7
Avg EPS beat(8)8.4%
EPS beat(12)8
Avg EPS beat(12)2.28%
EPS beat(16)10
Avg EPS beat(16)1.54%
Revenue beat(2)1
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)1.56%
Revenue beat(4)2
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)1.56%
Revenue beat(8)3
Avg Revenue beat(8)-3.41%
Revenue beat(12)3
Avg Revenue beat(12)-3.39%
Revenue beat(16)4
Avg Revenue beat(16)-2.98%
PT rev (1m)1.28%
PT rev (3m)6.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.64%
EPS NY rev (1m)6.23%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.79 | ||
| P/S | 2.81 | ||
| P/FCF | 8.09 | ||
| P/OCF | 8.09 | ||
| P/B | 1 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.41
EY8.67%
EPS(NY)3.64
Fwd EY9.26%
FCF(TTM)4.86
FCFY12.36%
OCF(TTM)4.86
OCFY12.36%
SpS13.97
BVpS39.26
TBVpS38.23
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 8.58% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.13% | ||
| GM | N/A | ||
| FCFM | 34.79% |
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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 144.21% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.62%
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 Y12.47%
EPS Next 2Y8.75%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue 1Y (TTM)8.47%
Revenue growth 3Y2.91%
Revenue growth 5Y2.4%
Sales Q2Q%9.48%
Revenue Next Year7.91%
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-44.78%
FCF growth 3Y-28.28%
FCF growth 5Y-5.38%
OCF growth 1Y-44.78%
OCF growth 3Y-29.16%
OCF growth 5Y-7.36%