First Busey Corp (BUSEP) stock analysis

P/E below its 5-year median

First Busey's P/E of 11.9 is below its own 5-year median of 12.0.

P/E below the industry

First Busey's P/E of 11.9 is below the Commercial Banks median of 12.3.

P/S below the industry

First Busey's price-to-sales of 3.01 is below the Commercial Banks median of 3.64.

P/B below the industry

First Busey's price-to-book of 1.00 is below the Commercial Banks median of 1.27.

Trading below fair value

The share price of $28.81 is below our fair value estimate of $31.09.

Margin of safety under 20%

The price is 7.3% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 16.9% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -13.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 198% over the last twelve months, against a 5-year average of 6.2% a year.

Growing faster than the industry

Revenue grew 41.4% over the last twelve months; the Commercial Banks median is 11.4%.

Guidance issued

The latest outlook (remainder of 2026 Cash flows from our securities portfolio, Jul 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.6% over the last twelve months and averaged 9.1% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.2%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

First Busey's return on equity of 9.6% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 6.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 29.3% over the last twelve months, against a 5-year average of 24.9%.

Net margin below the industry

First Busey's net margin of 29.3% is below the Commercial Banks median of 30.0%.

Well capitalized

Equity is 13.1% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 86.1% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 61.1% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 4.3% over the past year.

Modest borrowings

Borrowings other than deposits are 4.0% of equity.

Pays a dividend

First Busey paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; First Busey yields 3.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 46.8% of net income.

Covered by free cash flow

Dividends take 51.8% of free cash flow.