BKU

BankUnited

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

BankUnited operates as a regional banking institution, generating revenue primarily through net interest income on loans and securities, supplemented by fee-based services. Its moat is rooted in localized market presence, relationship-driven lending, and balance sheet deployment expertise rather than scale dominance. The 3.2 Price/Sales and 1.1 Price/Book suggest a franchise valued close to its tangible economics, meaning excess returns must come from disciplined underwriting and spread management. Sustained value creation hinges on protecting margins, optimizing capital allocation, and converting its 21.70% ROIC into consistently higher equity returns without compromising balance sheet stability.

VALUATION

P/E

13.2

Market Cap ($M USD)

$3,435

Forward P/E

10.3

PEG

13.8

PRICE TO SALES

3.2

PRICE TO BOOK

1.1

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

2.70%

Annual Payout

$1.32

Payout Ratio

34.40%

Consecutive Years of Dividend Growth

6

5-Year Dividend Growth Rate

7.50%

Financial Health & Profitability

Earnings Per Share

$3.55

Next Year EPS Growth Estimate

$4.55

Next Year Revenue Growth Estimate

4.70%

Return on Equity (ROE)

8.60%

Operating Margin

39.30%

Debt-to-Equity

0.6

Piotroski F-Score

6

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

21.70%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

BankUnited screens optically cheap with a 13.2 P/E and a compressed 10.3 forward P/E, but the market is clearly discounting real balance sheet and growth risk. The 13.8 forward PEG signals that earnings growth relative to valuation is weak, while the Altman Z-Score of 0.3 flashes severe financial stress risk despite a modest 39.30% Debt/Equity ratio. A 1.1 Price/Book suggests the market values the franchise barely above its net assets, reflecting skepticism around sustainability. This is not a clean mispricing story—it’s a statistically inexpensive bank with embedded fragility that the market is pricing cautiously, if not correctly.

AI Exposure / Tech Reliance

As a regional bank in the Financial Services sector, BankUnited operates in an industry rapidly digitizing underwriting, risk management, and customer acquisition. Banks that fail to modernize risk compression in operating margins, which currently stand at 8.60%. The firm’s ability to defend or expand its 4.70% Return on Equity will depend heavily on how effectively it leverages technology to improve efficiency and underwriting precision.

The Bull Case

A disciplined value or GARP investor could justify ownership on capital efficiency grounds alone. The company posts a striking 21.70% ROIC, which materially exceeds its 4.70% ROE, implying strong returns on invested capital relative to equity returns and signaling operational discipline. The Piotroski F-Score of 6 suggests fundamentally stable conditions rather than deterioration, and the 8.60% operating margin demonstrates that the core banking engine is profitable. Trading at 1.1x book with a forward P/E of 10.3, the market is pricing this as a slow, risk-laden lender, yet institutional ownership at 53.02% indicates meaningful professional participation, suggesting that sophisticated capital sees embedded value if earnings normalize toward the $3.55 EPS estimate next year.

The Bear Case

The red flags are serious and structural. A 13.8 forward PEG ratio implies that projected growth does not justify even the reduced forward multiple, and the Altman Z-Score of 0.3 is outright distress territory. Short interest at 7.50% of float reflects a meaningful cohort betting against the equity, while a 4.70% ROE is underwhelming for a regional bank. Add in a payout ratio listed at $1.32 against a TTM yield of 0.6 and a Dividend Per Share USD of 2.70%, and the capital return profile looks inconsistent, raising questions about sustainability and capital allocation discipline.

Market Sentiment & Smart Money

Short Interest %

5.20%

Analyst Consensus

2.31

Average Analyst Price Target

$53.02

Institutional Ownership %

109.90%

1-Year Beta

1.18

Insider Buying % (6 Mo)

1.00%%

Distance to 52-Week High

89.50%%

Distance to 52-Week Low

163.80%%