Investment Thesis
BOK Financial shows strong revenue growth but concerning deterioration in fundamentals. Negative operating cash flow of -$248.7M despite $155.8M net income signals poor earnings quality. Critically weak ROE of 2.6% and interest coverage of 0.3x indicate severe asset utilization and debt service challenges.
Strengths
- Strong revenue growth of 90.7% YoY demonstrates business expansion
- Decent net profit margin of 25.3% shows pricing power
- Moderate leverage with debt-to-equity ratio of 0.78x provides borrowing capacity
Risks
- Negative operating cash flow of -$248.7M reveals severe earnings quality issues and cash generation problems
- Critically low ROE of 2.6% and ROA of 0.3% indicate severely impaired asset utilization and shareholder value destruction
- Dangerous interest coverage ratio of 0.3x suggests inability to cover debt obligations from operating income
- Minimal net income growth (+0.7%) despite massive revenue growth (+90.7%) indicates margin compression or acquisition dilution
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory
- Return on equity - needs to improve toward 10%+ industry norms for banks
- Interest coverage ratio - must exceed 1.0x to ensure debt service sustainability
Financial Metrics
Revenue
615.9M
Net Income
155.8M
EPS (Diluted)
$2.58
Free Cash Flow
-284.4M
Total Assets
53.8B
Cash
1.4B
Profitability Ratios
Gross Margin
N/A
Operating Margin
32.4%
Net Margin
25.3%
ROE
2.6%
ROA
0.3%
FCF Margin
-46.2%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.78x
Debt/Assets
88.9%
Interest Coverage
0.27x
Long-term Debt
4.6B
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: 2026-05-07T06:08:05.190173 |
Data as of: 2026-03-31 |
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