Investment Thesis
BankUnited exhibits critical operational stress with interest coverage of 0.1x—unable to cover debt service from operating income. Despite a solid balance sheet ($3B equity, 0.11x D/E), the combination of severe revenue contraction (-98.8% YoY) and dangerously low interest coverage signals fundamental financial distress requiring immediate investigation.
Strengths
- Moderate leverage ratio (0.11x D/E) provides balance sheet cushion
- Substantial asset base ($35.4B) and $3B stockholders equity
- Positive free cash flow ($13.9M) despite operational challenges
Risks
- Interest coverage of 0.1x indicates inability to service debt from operating income—critical red flag
- Revenue collapse of -98.8% YoY suggests severe operational deterioration
- Data quality concerns with revenue-to-income disconnect (6.2M revenue vs 81.7M operating income) obscure true financial position
Key Metrics to Watch
- Interest coverage ratio and debt service capacity
- Actual net interest income and non-interest income trends
- Loan loss provisions and asset quality metrics
Financial Metrics
Revenue
6.2M
Net Income
61.9M
EPS (Diluted)
$0.83
Free Cash Flow
13.9M
Total Assets
35.4B
Cash
384.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,314.3%
Net Margin
994.9%
ROE
2.1%
ROA
0.2%
FCF Margin
223.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.11x
Debt/Assets
91.5%
Interest Coverage
0.10x
Long-term Debt
319.3M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T06:17:26.289764 |
Data as of: 2026-03-31 |
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