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BHRB Stock Analysis - Burke & Herbert Financial Services Corp. AI Rating

BHRB Nasdaq National Commercial Banks VA CIK: 0001964333
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
72% Confidence

📊 BHRB Key Takeaways

Revenue: $295.9M
Net Margin: 39.6%
Free Cash Flow: $96.2M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $7.72
AI Rating: BUY with 72% confidence

Investment Thesis

Burke & Herbert demonstrates robust fundamental strength with exceptional profitability metrics (39.6% net margin, 49.0% operating margin) and solid growth in net income (+0.8% YoY) despite operating in the competitive banking sector. Strong free cash flow generation ($96.2M, 32.5% FCF margin) and conservative leverage (0.00x debt/equity) indicate healthy balance sheet management, though the 541.8% revenue spike warrants verification for sustainability and operational quality.

BHRB Strengths

  • + Exceptional net margin of 39.6% and operating margin of 49.0% indicating superior operational efficiency
  • + Strong free cash flow generation at $96.2M with 32.5% FCF margin demonstrating cash conversion quality
  • + Conservative capital structure with 0.00x debt/equity ratio and solid 8.7x interest coverage
  • + Positive earnings growth (EPS +173.8% YoY) with increasing net income despite banking sector headwinds
  • + Substantial asset base of $7.9B supporting lending and diversification capabilities

BHRB Risks

  • ! Extraordinary 541.8% YoY revenue growth appears unsustainable and may indicate merger activity, acquisition, or accounting anomaly requiring clarification
  • ! Low ROA of 1.5% is concerning for a $7.9B asset base and below typical bank industry standards
  • ! Modest ROE of 13.7% relative to profitability margins suggests inefficient equity deployment or understated asset quality issues
  • ! 34 Form 4 insider filings in 90 days indicates elevated insider activity that could signal uncertainty or equity overhang
  • ! Limited publicly available context on core banking operations, loan portfolio quality, and deposit stability

Key Metrics to Watch

BHRB Financial Metrics

Revenue
$295.9M
Net Income
$117.3M
EPS (Diluted)
$7.72
Free Cash Flow
$96.2M
Total Assets
$7.9B
Cash Position
$289.1M

💡 AI Analyst Insight

The 32.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

BHRB Profitability Ratios

Gross Margin N/A
Operating Margin 49.0%
Net Margin 39.6%
ROE 13.7%
ROA 1.5%
FCF Margin 32.5%

BHRB vs Finance Sector

How Burke & Herbert Financial Services Corp. compares to Finance sector averages

Net Margin
BHRB 39.6%
vs
Sector Avg 25.0%
BHRB Sector
ROE
BHRB 13.7%
vs
Sector Avg 12.0%
BHRB Sector
Current Ratio
BHRB 0.0x
vs
Sector Avg 1.2x
BHRB Sector
Debt/Equity
BHRB 0.0x
vs
Sector Avg 2.0x
BHRB Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BHRB Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
89.2%
Interest Coverage
8.72x
Long-term Debt
N/A

BHRB 5-Year Financial Trend

BHRB 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Burke & Herbert Financial Services Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.02 reflects profitable operations.

BHRB Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
32.5%
Free cash flow / Revenue

BHRB Capital Allocation

Operating Cash Flow
$107.9M
Cash generated from operations
Capital Expenditures
$11.7M
Investment in assets
Dividends Paid
$33.9M
Returned to shareholders

BHRB SEC Filings

Access official SEC EDGAR filings for Burke & Herbert Financial Services Corp. (CIK: 0001964333)

📋 Recent SEC Filings

Date Form Document Action
Mar 13, 2026 8-K bhrb-20260309.htm View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772650539.xml View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772650534.xml View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772650530.xml View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772650525.xml View →

Frequently Asked Questions about BHRB

What is the AI rating for BHRB?

Burke & Herbert Financial Services Corp. (BHRB) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BHRB's key strengths?

Exceptional net margin of 39.6% and operating margin of 49.0% indicating superior operational efficiency. Strong free cash flow generation at $96.2M with 32.5% FCF margin demonstrating cash conversion quality.

What are the risks of investing in BHRB?

Extraordinary 541.8% YoY revenue growth appears unsustainable and may indicate merger activity, acquisition, or accounting anomaly requiring clarification. Low ROA of 1.5% is concerning for a $7.9B asset base and below typical bank industry standards.

What is BHRB's revenue and growth?

Burke & Herbert Financial Services Corp. reported revenue of $295.9M.

Does BHRB pay dividends?

Burke & Herbert Financial Services Corp. pays dividends, with $33.9M distributed to shareholders in the trailing twelve months.

Where can I find BHRB SEC filings?

Official SEC filings for Burke & Herbert Financial Services Corp. (CIK: 0001964333) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BHRB's EPS?

Burke & Herbert Financial Services Corp. has a diluted EPS of $7.72.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude 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 and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI