Burke & Herbert Financial Services Corp. Fundamental Analysis (NASDAQ: BHRB)
Burke & Herbert Financial Services Corp. Fundamental Analysis (NASDAQ: BHRB)
Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) shows strong financial fundamentals with a PE ratio of 11.34, profit margin of 21.89%, and ROE of 10.37%. The company generates $0.6B in annual revenue with strong year-over-year growth of 23.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BHRB's fundamental strength across five key dimensions:
Efficiency Score
WeakBHRB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBHRB trades at attractive valuation levels.
Growth Score
ModerateBHRB shows steady but slowing expansion.
Financial Health Score
ExcellentBHRB maintains a strong and stable balance sheet.
Profitability Score
ModerateBHRB maintains healthy but balanced margins.
Key Financial Metrics
Is BHRB Expensive or Cheap?
P/E Ratio
BHRB trades at 11.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BHRB's PEG of -1.21 indicates potential undervaluation.
Price to Book
The market values Burke & Herbert Financial Services Corp. at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.65 times EBITDA. This is generally considered low.
How Well Does BHRB Make Money?
Net Profit Margin
For every $100 in sales, Burke & Herbert Financial Services Corp. keeps $21.89 as profit after all expenses.
Operating Margin
Core operations generate 27.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.37 in profit for every $100 of shareholder equity.
ROA
Burke & Herbert Financial Services Corp. generates $0.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Burke & Herbert Financial Services Corp. produces operating cash flow of $129.79M, showing steady but balanced cash generation.
Free Cash Flow
Burke & Herbert Financial Services Corp. generates strong free cash flow of $115.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.74 in free cash annually.
FCF Yield
BHRB converts 6.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BHRB Stacks Against Its Sector Peers
| Metric | BHRB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.34 | 21.11 | Better (Cheaper) |
| ROE | 10.37% | 655.00% | Weak |
| Net Margin | 21.89% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 4.06 | 910.44 | Strong Liquidity |
| ROA | 0.88% | 4469138.00% | Weak |
BHRB outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Burke & Herbert Financial Services Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
113.74%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
133.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
145.86%
Industry Style: Value, Dividend, Cyclical
High Growth