BankUnited, Inc. (BKU) stock analysis

P/E above its 5-year median

BankUnited's P/E of 11.8 is above its own 5-year median of 11.1.

P/E below the industry

BankUnited's P/E of 11.8 is below the Savings Institutions median of 13.7.

P/S above the industry

BankUnited's price-to-sales of 126.20 is above the Savings Institutions median of 3.77.

P/B above the industry

BankUnited's price-to-book of 1.11 is above the Savings Institutions median of 1.04.

Trading above fair value

The share price of $43.85 is above our fair value estimate of $43.50.

Margin of safety under 20%

The price is 0.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 2.1% over the last twelve months, against a 5-year average of 6.3% a year.

Growing faster than the industry

Revenue grew 18.2% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.4% over the last twelve months and averaged 9.8% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

BankUnited's return on equity of 9.4% is above the Savings Institutions median of 6.1%.

Earnings grew over 5 years

Net income grew 6.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1107% over the last twelve months, against a 5-year average of 1284%.

Net margin above the industry

BankUnited's net margin of 1107% is above the Savings Institutions median of 20.3%.

Well capitalized

Equity is 8.2% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 83.3% of deposits, so lending is funded by customer deposits.

Thin loan-loss reserve

The allowance for credit losses is 0.9% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 61.2% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 1.1% over the past year.

Modest borrowings

Borrowings other than deposits are 11.3% of equity.

Pays a dividend

BankUnited paid dividends worth 3.0% of the share price over the last twelve months.

Yield below Treasuries

The 3.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; BankUnited yields 3.0%.

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 34.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.