Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

BankUnited, Inc. (BKU)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$24.15 - $34.46$29.21
Multi-Stage$36.51 - $40.03$38.24
Blended Fair Value$33.73
Current Price$38.16
Upside-11.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.34%-0.25%1.151.061.071.151.161.131.231.231.211.20
YoY Growth--8.12%-0.44%-7.40%-0.85%2.90%-7.91%-0.35%2.01%0.95%1.44%
Dividend Yield--3.34%3.88%4.73%2.62%2.65%6.05%3.57%3.08%3.24%3.47%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)263.97
(-) Cash Dividends Paid (M)90.26
(=) Cash Retained (M)173.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)52.7933.0019.80
Cash Retained (M)173.71173.71173.71
(-) Cash Required (M)-52.79-33.00-19.80
(=) Excess Retained (M)120.92140.71153.91
(/) Shares Outstanding (M)74.3674.3674.36
(=) Excess Retained per Share1.631.892.07
LTM Dividend per Share1.211.211.21
(+) Excess Retained per Share1.631.892.07
(=) Adjusted Dividend2.843.113.28
WACC / Discount Rate9.90%9.90%9.90%
Growth Rate-1.66%-0.66%0.34%
Fair Value$24.15$29.21$34.46
Upside / Downside-36.70%-23.45%-9.71%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)263.97262.22260.49258.76257.05255.35263.01
Payout Ratio34.19%45.36%56.52%67.68%78.84%90.00%92.50%
Projected Dividends (M)90.26118.93147.22175.12202.65229.81243.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.90%9.90%9.90%
Growth Rate-1.66%-0.66%0.34%
Year 1 PV (M)107.13108.22109.31
Year 2 PV (M)119.45121.89124.35
Year 3 PV (M)127.99131.93135.96
Year 4 PV (M)133.41138.92144.60
Year 5 PV (M)136.27143.34150.70
PV of Terminal Value (M)2,090.562,199.042,311.98
Equity Value (M)2,714.812,843.342,976.90
Shares Outstanding (M)74.3674.3674.36
Fair Value$36.51$38.24$40.03
Upside / Downside-4.32%0.21%4.91%

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