BankUnited
Market Cap
US$3.1b
Last Updated
2020/02/17 00:25 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.08% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet and good value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.2%
BKU
0.5%
US Banks
1.5%
US Market
1 Year Return
-8.9%
BKU
12.1%
US Banks
20.1%
US Market
Return vs Industry: BKU underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: BKU underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| BKU | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 0.5% | 1.5% |
| 30 Day | -5.8% | -1.3% | 1.4% |
| 90 Day | -4.5% | 1.2% | 8.7% |
| 1 Year | -6.6%-8.9% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | -10.6%-16.7% | 25.2%16.2% | 50.1%40.5% |
| 5 Year | 14.2%1.1% | 75.9%55.9% | 73.1%54.1% |
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
1 week ago | Simply Wall St
What Is BankUnited, Inc.'s (NYSE:BKU) Share Price Doing?3 weeks ago | Simply Wall St
BankUnited, Inc. Just Recorded A 6.1% EPS Beat: Here's What Analysts Are Forecasting Next3 weeks ago | Simply Wall St
Is BankUnited, Inc.'s (NYSE:BKU) CEO Overpaid Relative To Its Peers?Valuation
Is BankUnited undervalued compared to its fair value and its price relative to the market?
13.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BKU ($33.11) is trading below our estimate of fair value ($38.22)
Significantly Below Fair Value: BKU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BKU is good value based on its PE Ratio (10.5x) compared to the Banks industry average (12.6x).
PE vs Market: BKU is good value based on its PE Ratio (10.5x) compared to the US market (18.4x).
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 (1.1x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is BankUnited forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-0.08%
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 (-0.08% per year).
Earnings vs Market: BKU's earnings are forecast to decline over the next 3 years (-0.08% per year).
High Growth Earnings: BKU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BKU's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: BKU's revenue (3.9% 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 (9.6%).
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 (12.1%).
Return on Equity
High ROE: BKU's Return on Equity (10.5%) is considered low.
Return on Assets
Return on Capital Employed
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
Inventory Level: BKU has a low level of unsold assets or inventory.
Debt Coverage by Assets: BKU's debt is not covered by short term assets (assets are 0.1x debt).
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?
2.54%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BKU's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: BKU's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (26.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Raj Singh (48yo)
3.1yrs
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 ($USD4.88M).
Compensation vs Earnings: Raj's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 3.1yrs | US$5.60m | 0.30% $9.6m | |
| Chief Financial Officer | 6.9yrs | US$1.57m | 0.057% $1.8m | |
| Chief Operating Officer | 3.1yrs | US$2.69m | 0.091% $2.9m | |
| Chief Investment Officer of BankUnited | 3yrs | US$1.71m | 0.040% $1.3m | |
| General Counsel | 0.7yrs | no data | 0.0021% $66.1k | |
| Executive VP & Director of Human Resources | 0yrs | no data | no data | |
| Senior VP of Investor Relations & Corporate Secretary | 0yrs | no data | no data | |
| Senior VP & Community Development Officer | 6.8yrs | no data | no data | |
| Executive VP & Director of Business Banking for New York & Long Island | 6.8yrs | no data | no data | |
| Senior EVP & Commercial Banking Executive | 6.6yrs | no data | no data |
4.8yrs
Average Tenure
54yo
Average Age
Experienced Management: BKU's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 3.1yrs | US$5.60m | 0.30% $9.6m | |
| Independent Director | 5.8yrs | US$192.80k | 0.0074% $233.4k | |
| Independent Director | 2.5yrs | US$157.99k | 0.0036% $112.8k | |
| Director | 5.8yrs | US$203.55k | 0.069% $2.2m | |
| Independent Director | 6.8yrs | US$157.99k | 0.0085% $266.5k | |
| Independent Director | 4.5yrs | US$192.80k | 0.0063% $200.0k | |
| Independent Director | 6.4yrs | US$142.80k | 0.0085% $266.5k | |
| Director | 1.5yrs | US$36.02k | 0.0027% $84.4k | |
| Independent Director | 4.5yrs | US$142.80k | 0.0066% $207.9k |
4.5yrs
Average Tenure
60yo
Average Age
Experienced Board: BKU's board of directors are considered experienced (4.5 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$3.150b
- Shares outstanding: 95.13m
- Website: https://www.bankunited.com
Number of Employees
Location
- BankUnited, Inc.
- 14817 Oak Lane
- Miami Lakes
- Florida
- 33016
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BKU | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 2011 |
| BNU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:25 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.