NYSE:BKU

Stock Analysis Report

Executive Summary

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has BankUnited's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.8%

BKU

0.7%

US Banks

2.4%

US Market


1 Year Return

-47.6%

BKU

-28.9%

US Banks

-10.0%

US Market

Return vs Industry: BKU underperformed the US Banks industry which returned -28.9% over the past year.

Return vs Market: BKU underperformed the US Market which returned -10% over the past year.


Shareholder returns

BKUIndustryMarket
7 Day6.8%0.7%2.4%
30 Day-24.3%-18.9%-11.0%
90 Day-48.6%-39.2%-19.4%
1 Year-46.3%-47.6%-26.8%-28.9%-8.1%-10.0%
3 Year-44.8%-48.3%-17.2%-23.3%17.3%9.6%
5 Year-39.1%-45.7%8.1%-4.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is BankUnited's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BankUnited undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKU ($18.37) is trading below our estimate of fair value ($24.11)

Significantly Below Fair Value: BKU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BKU is good value based on its PE Ratio (5.9x) compared to the Banks industry average (8.7x).

PE vs Market: BKU is good value based on its PE Ratio (5.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: BKU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BKU is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is BankUnited forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKU's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: BKU's earnings are forecast to decline over the next 3 years (-11.4% per year).

High Growth Earnings: BKU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BKU's revenue (2.1% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BKU's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKU's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has BankUnited performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKU has high quality earnings.

Growing Profit Margin: BKU's current net profit margins (33.6%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: BKU's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: BKU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BKU had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Banks industry average (10.8%).


Return on Equity

High ROE: BKU's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is BankUnited's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BKU's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BKU has a low allowance for bad loans.

Low Risk Liabilities: BKU's liabilities are made up of primarily low risk sources of funding.

Loan Level: BKU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BKU's loans are broadly funded by customer deposits.

Level of Bad Loans: BKU has an appropriate level of bad loans (0.88%)


Next Steps

Dividend

What is BankUnited's current dividend yield, its reliability and sustainability?

5.01%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BKU's dividend (5.01%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: BKU's dividend (5.01%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BKU has been paying a dividend for less than 10 years.

Growing Dividend: BKU's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), BKU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKU's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Raj Singh (48yo)

3.25s

Tenure

US$5,599,377

Compensation

Mr. Rajinder P. Singh, also known as Raj, has been the Chief Executive Officer and President of BankUnited, Inc. since January 1, 2017 and founded it. Mr. Singh served as the Chief Operating Officer at Ban ...


CEO Compensation Analysis

Compensation vs Market: Raj's total compensation ($USD5.60M) is about average for companies of similar size in the US market ($USD4.67M).

Compensation vs Earnings: Raj's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajinder Singh
Founder3.25yrsUS$5.60m0.37% $6.3m
Leslie Lunak
Chief Financial Officer7.08yrsUS$1.57m0.074% $1.3m
Thomas Cornish
Chief Operating Officer3.25yrsUS$2.69m0.11% $1.9m
Rishi Bansal
Chief Investment Officer of BankUnited3.17yrsUS$1.71m0.035% $603.1k
Michael Alford
General Counsel0.83yrno data0.0043% $73.5k
Christopher Perry
Executive VP & Director of Human Resourcesno datano datano data
Susan Wright Greenfield
Senior VP of Investor Relations & Corporate Secretaryno datano datano data
Claire Raley
Senior VP & Community Development Officer7yrsno datano data
Michael Quigley
Executive VP & Director of Business Banking for New York & Long Island6.92yrsno datano data
Cristina di Mauro
Senior EVP & Commercial Banking Executive6.75yrsno datano data

5.0yrs

Average Tenure

54yo

Average Age

Experienced Management: BKU's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajinder Singh
Founder3.25yrsUS$5.60m0.37% $6.3m
Sanjiv Sobti
Independent Director5.92yrsUS$192.80k0.0075% $129.5k
William Rubenstein
Independent Director2.67yrsUS$157.99k0.0036% $62.7k
Douglas Pauls
Director5.92yrsUS$203.55k0.070% $1.2m
Michael Dowling
Independent Director6.92yrsUS$157.99k0.0086% $147.7k
Lynne Wines
Independent Director4.67yrsUS$192.80k0.0065% $111.0k
Tere Blanca
Independent Director6.58yrsUS$142.80k0.0086% $147.7k
John DiGiacomo
Director1.67yrsUS$36.02k0.0027% $46.8k
A. Prudenti
Independent Director4.67yrsUS$142.80k0.0067% $115.3k

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: BKU's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BankUnited, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BankUnited, Inc.
  • Ticker: BKU
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.722b
  • Shares outstanding: 93.72m
  • Website: https://www.bankunited.com

Number of Employees


Location

  • BankUnited, Inc.
  • 14817 Oak Lane
  • Miami Lakes
  • Florida
  • 33016
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKUNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2011
BNUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2011

Biography

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, such as checking, money market deposit, savings accounts, and certificates of deposit; and treasury management services. Its loans portfolio includes small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and residential mortgage warehouse lines of credit, letters of credit, and consumer loans, as well as purchases performing residential loans. The company also offers ATMs, integrated online, mobile, and telephone banking services. As of December 31, 2018, it operated through a network of 85 branches located in 14 Florida counties; and 5 banking centers in the New York metropolitan area. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was founded in 2009 and is headquartered in Miami Lakes, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 06:54
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.