In the world of finance, not all that glitters is gold. This is especially true when it comes to investing in public companies like BankUnited, a regional bank listed on the NYSE. With a current valuation of $7.72 billion and a net income of $222.1 million, BankUnited presents a compelling case for investment. The bank has shown a modest five-year return of 2.60% and a payout ratio of 36.86%, indicating a balanced approach to reinvesting profits and rewarding shareholders. However, with a price to earnings ratio of 10.55X, investors must carefully consider whether BankUnited is a golden opportunity or a missed shot. Currently, BankUnited's Revenue to Assets ratio remains relatively stable compared to the previous year. The Total Assets Per Share is projected to increase to 475.13 in 2024, while Average Assets are expected to decrease slightly above $38.4 billion in the same year. If you have been tracking BankUnited, you might be contemplating an investment. It's crucial to determine whether the stable forward-looking indicators will continue to drive price gains for BankUnited's private investors. BankUnited is known for its responsive approach to market trends. Consequently, it's time to evaluate BankUnited as a potential investment addition to your portfolio.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include BankUnited income statement, its balance sheet, and the statement of cash flows. Potential BankUnited investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although BankUnited investors may use each financial statement separately, they are all related. The changes in BankUnited's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on BankUnited's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of BankUnited
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of BankUnited performance into the future periods or doing a reasonable stock valuation. The intrinsic value of BankUnited shares is the value that is considered the true value of the share. If
the intrinsic value of BankUnited is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares BankUnited. Please read more on our
fundamental analysis page.
How effective is BankUnited in utilizing its assets?
BankUnited reports assets on its Balance Sheet. It represents the amount of BankUnited resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, BankUnited aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Regional Banks space. To get a better handle on how balance sheet or income statements item affect BankUnited volatility, please check the breakdown of all its
fundamentals.
Are BankUnited Earnings Expected to grow?
The
future earnings power of BankUnited involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of BankUnited factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. BankUnited
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of BankUnited
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of BankUnited earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. BankUnited dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. BankUnited one year expected dividend income is about USD0.83 per share.
Dividend Paid And Capex Coverage Ratio is likely to gain to 3.85 in 2024, despite the fact that
Dividends Paid is likely to grow to (75.1
M).
Investing in dividend-paying stocks, such as BankUnited is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in BankUnited must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for BankUnited. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
BankUnited Gross Profit
BankUnited Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BankUnited previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show BankUnited Gross Profit growth over the last 10 years. Please check BankUnited's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective On BankUnited
There are few distinct groups of BankUnited stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of BankUnited is distributed among investors.
Ownership Allocation
BankUnited retains a total of 74.38 Million outstanding shares. The majority of BankUnited
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in BankUnited to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in BankUnited. Please pay attention to any change in the institutional holdings of BankUnited as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors | 0.0 |
| Insiders | 0.96 |
| Institutions | 99.04 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence BankUnited's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over BankUnited's decisions due to their larger holdings.
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of BankUnited implies not a very effective usage of assets in January.
Goodwill91 M | Tax Assets120.5 M |
| Goodwill | 90.99 Million | 43.02 |
| Tax Assets | 120.53 Million | 56.98 |
As Benjamin Franklin once said, an investment in knowledge pays the best interest. In the case of BankUnited, this couldn't be more accurate. With a five-year return of 2.60%, the company's performance has been steady, if not spectacular. The bank's operating margin stands at a modest 0.34%, indicating a relatively efficient operation. However, a beta of 1.39 suggests a higher volatility compared to the market, which may deter risk-averse investors. The company's Price to Earnings (PE) ratio of 10.23, below the industry average, suggests that the stock could be undervalued. On the downside, BankUnited's probability of bankruptcy stands at a concerning 47.56%, which could be a red flag for potential investors. In conclusion, while BankUnited presents some attractive fundamentals, it also carries significant risks, making it a potentially rewarding but risky investment.
Possible February recoup of BankUnited?
BankUnited's latest mean deviation stands at 1.96, indicating increased volatility and potential risk. However, this could also present an opportunity for astute investors to capitalize on fluctuating prices. Given the
current market conditions, there's a possibility that BankUnited could see a recovery in February. As always, investors should carefully consider their risk tolerance and investment strategy before making any decisions. BankUnited exhibits relatively low volatility with a skewness of 1.58 and a kurtosis of 3.36. However, we advise all investors to independently investigate BankUnited to ensure all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends often helps investors to time the market. Proper use of volatility indicators allows traders to measure BankUnited's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
BankUnited's stock price, adding stress to investors as they watch the value of their shares plummet. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, BankUnited's stock presents a complex investment scenario. The analyst overall consensus leans towards a
Sell recommendation, with a notable number of 8 holds and 2 strong sells. The estimated target price ranges from a low of
$25 to a high of
$36, with an average estimated value of $29.727, which is slightly below the current market value of $30.09. The valuation real value stands at $31.69, indicating a potential upside. However, the possible downside price of $28.2 should not be overlooked. Therefore, investors should carefully consider these factors and their risk tolerance before deciding on BankUnited. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of BankUnited. Please refer to our
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