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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.1GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.9%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.41%
Trailing Yield
$1.41
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
17%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, BYLINE BANCORP, INC. (BY) receives a "Hold" rating with a composite score of 55.4/100, ranked #219 out of 4446 stocks. Key factor scores: Quality 57/100, Value 74/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
BYLINE BANCORP, INC. (BY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does BYLINE BANCORP, INC. Do?
Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. It operates through 43 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois. BYLINE BANCORP, INC. (BY) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Roberto R. Herencia and employs approximately 970 people. With a market capitalization of $1.5B, BY is one of the notable companies in the Financials sector.
BYLINE BANCORP, INC. (BY) Stock Rating — Hold (April 2026)
As of April 2026, BYLINE BANCORP, INC. receives a Hold rating with a composite score of 55.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BY ranks #219 out of 4,446 stocks in our coverage universe. Within the Financials sector, BYLINE BANCORP, INC. ranks #83 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BY Stock Price and 52-Week Range
BYLINE BANCORP, INC. (BY) currently trades at $33.15. The stock lost $0.35 (1.0%) in the most recent trading session. The 52-week high for BY is $33.89, which means the stock is currently trading -2.2% from its annual peak. The 52-week low is $22.63, putting the stock 46.5% above its annual trough. Recent trading volume was 124K shares, suggesting relatively thin trading activity.
Is BY Overvalued or Undervalued? — Valuation Analysis
BYLINE BANCORP, INC. (BY) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.71x, compared to the Financials sector average of 14.88x — a discount of 21%. The price-to-book ratio stands at 1.16x, versus the sector average of 1.22x. The price-to-sales ratio is 2.78x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BY trades at 9.33x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, BYLINE BANCORP, INC. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
BYLINE BANCORP, INC. Profitability — ROE, Margins, and Quality Score
BYLINE BANCORP, INC. (BY) earns a quality factor score of 57/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.9%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.3% versus the sector average of 1.2%.
On a margin basis, BYLINE BANCORP, INC. reports gross margins of 0.0%. The operating margin is 29.4% (sector: 21.8%). Net profit margin stands at 24.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 5.0% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BY Debt, Balance Sheet, and Financial Health
BYLINE BANCORP, INC. has a debt-to-equity ratio of 661.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.15x, suggesting adequate working capital coverage. Total debt on the balance sheet is $582M. Cash and equivalents stand at $70M.
BY has a beta of 0.75, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for BYLINE BANCORP, INC. is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
BYLINE BANCORP, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, BYLINE BANCORP, INC. reported revenue of $530M and earnings per share (EPS) of $2.90. Net income for the quarter was $126M. Gross margin was 0.0%. Operating income came in at $141M.
In FY 2025, BYLINE BANCORP, INC. reported revenue of $572M and earnings per share (EPS) of $2.90. Net income for the quarter was $130M. Revenue grew 1.1% year-over-year compared to FY 2024. Operating income came in at $173M.
In Q3 2025, BYLINE BANCORP, INC. reported revenue of $149M and earnings per share (EPS) of $0.82. Net income for the quarter was $37M. Revenue grew 45.9% year-over-year compared to Q3 2024. Operating income came in at $50M.
In Q2 2025, BYLINE BANCORP, INC. reported revenue of $145M and earnings per share (EPS) of $0.66. Net income for the quarter was $30M. Revenue grew 2.1% year-over-year compared to Q2 2024. Operating income came in at $39M.
Over the past 8 quarters, BYLINE BANCORP, INC. has demonstrated a growth trajectory, with revenue expanding from $142M to $530M. Investors analyzing BY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BY Dividend Yield and Income Analysis
BYLINE BANCORP, INC. (BY) currently pays a dividend yield of 1.4%. At this yield, a $10,000 investment in BY stock would generate approximately $$141.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning BY yields less than the typical sector peer. With a net margin of 24.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
BY Momentum and Technical Analysis Profile
BYLINE BANCORP, INC. (BY) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BY vs S&P 500 (SPY) comparison to assess how BYLINE BANCORP, INC. stacks up against the broader market across all factor dimensions.
BY Next Earnings Date
No upcoming earnings date has been announced for BYLINE BANCORP, INC. (BY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BY? — Investment Thesis Summary
BYLINE BANCORP, INC. presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 85/100) reduces downside risk.
In summary, BYLINE BANCORP, INC. (BY) earns a Hold rating with a composite score of 55.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BY stock.
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Institutional Research Dossier
BYLINE BANCORP, INC. (BY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Byline Bancorp (BY) receives a Hold rating, reflecting a balanced view of its attractive valuation metrics offset by concerns regarding its capital allocation strategy and relatively high leverage. While the company exhibits strong profitability and trades at a discount to its peers, its comparatively weak investment score and elevated debt levels warrant caution. Investors should closely monitor Byline's ability to maintain its margins, manage its debt burden, and effectively deploy capital to drive future growth.
The company's focus on small and medium-sized businesses in the Chicago metropolitan area provides a niche market, but also exposes it to regional economic fluctuations. The current valuation suggests the market is already pricing in some of these risks. A more aggressive growth strategy or a significant deterioration in asset quality could negatively impact shareholder value. Therefore, a neutral stance is warranted until there is more clarity on the company's long-term strategic direction and its ability to navigate the evolving economic landscape.
Business Strategy & Overview
Byline Bancorp operates as a community-focused bank, primarily serving small and medium-sized businesses (SMBs), commercial real estate ventures, financial sponsors, and individual consumers within the Chicago metropolitan area and a single branch in Wisconsin. The bank's core strategy revolves around providing a comprehensive suite of banking products and services tailored to the specific needs of its target clientele. This includes traditional retail deposit products, commercial lending, SBA and USDA loans, and treasury management services. A key differentiator is its focus on building strong relationships with its customers, offering personalized service and local market expertise.
The company's revenue streams are diversified across various lending activities, including term loans, revolving lines of credit, and construction financing. Byline also provides specialized financing solutions to private equity-backed lower middle-market companies, a segment that often requires more sophisticated and customized financial products. Furthermore, the bank offers equipment financing solutions, catering to both vendors and end-users. This diversified approach helps to mitigate risk and allows Byline to capitalize on different growth opportunities within its target markets.
Byline's strategic positioning within the Chicago metropolitan area is both an advantage and a potential vulnerability. The bank benefits from its deep understanding of the local market dynamics and its established network of relationships. However, it is also exposed to the economic cycles and competitive pressures specific to the region. To mitigate this risk, Byline has expanded its service offerings to include investment, trust, and wealth management services, targeting high-net-worth individuals and institutions. This diversification aims to generate additional revenue streams and enhance customer loyalty.
The company's growth strategy appears to be a mix of organic expansion and strategic acquisitions. While the provided data doesn't explicitly detail recent acquisitions, the historical growth in revenue and net income suggests that Byline has been actively pursuing opportunities to expand its market share and service offerings. The bank's focus on technology and digital banking services is also crucial for attracting and retaining customers in an increasingly competitive environment. Byline's investment in online, mobile, and text banking services reflects its commitment to providing convenient and accessible banking solutions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.0%
Sector: 9.4%
-47% VS SCTR
Economic Moat Analysis
Byline Bancorp's economic moat can be classified as Narrow. While the bank possesses certain advantages that provide it with a degree of competitive protection, these advantages are not strong enough to warrant a Wide moat rating. The primary source of Byline's moat stems from its established presence and local market expertise within the Chicago metropolitan area. This regional focus allows the bank to build strong relationships with its customers, particularly small and medium-sized businesses, which often value personalized service and local knowledge.
The bank's focus on relationship banking creates a degree of switching costs for its customers. Businesses that have established lending relationships with Byline may be hesitant to switch to a competitor due to the time and effort required to build a new relationship and navigate a new bank's processes. This is particularly true for businesses that rely on Byline for specialized services such as SBA loans or treasury management. However, these switching costs are not insurmountable, and customers can and do switch banks if they find a better deal or a more compelling service offering.
Byline's brand recognition within the Chicago area also contributes to its narrow moat. The bank has been operating in the region for over a century, and its name is well-known and respected within the local business community. This brand recognition provides Byline with a competitive advantage in attracting new customers and retaining existing ones. However, brand recognition alone is not sufficient to create a wide moat, as other banks also have strong brands and established reputations.
The banking industry is highly competitive, and Byline faces competition from a wide range of institutions, including large national banks, regional banks, and credit unions. While Byline's local focus and relationship-based approach provide it with a degree of differentiation, it is not immune to the competitive pressures of the industry. The bank must constantly innovate and adapt to changing customer needs to maintain its competitive edge. The relatively low short interest score of 18/100 suggests that the market does not perceive a significant threat to Byline's business model in the near term, but this could change if the bank fails to execute its strategy effectively.
Efficient scale is not a significant factor in Byline's moat. While the banking industry does benefit from economies of scale, Byline is not large enough to achieve a significant cost advantage over its competitors. The bank's focus on personalized service and local market expertise also limits its ability to scale its operations efficiently. Therefore, while Byline possesses certain advantages that provide it with a narrow moat, it is not immune to the competitive pressures of the banking industry. The bank must continue to focus on building strong relationships with its customers, innovating its products and services, and managing its costs effectively to maintain its competitive edge.
Financial Health & Profitability
Byline Bancorp demonstrates a solid financial profile, characterized by strong profitability metrics and a stable balance sheet, albeit with a relatively high debt-to-equity ratio. The company's revenue has shown consistent growth, increasing from $479.48 million in FY2023 to $572.22 million in FY2025. This growth trajectory indicates a healthy demand for Byline's banking products and services. Net income has also followed a similar upward trend, rising from $107.88 million in FY2023 to $130.05 million in FY2025, reflecting improved operational efficiency and effective cost management.
Byline's profitability metrics are particularly impressive when compared to the sector averages. The company's net margin of 24.1% significantly exceeds the sector average of 17.8%, indicating superior profitability. Similarly, Byline's operating margin of 29.4% is higher than the sector average of 22.0%, suggesting efficient management of operating expenses. The company's ROE of 9.9% is also higher than the sector average of 8.5%, demonstrating its ability to generate returns on equity. However, the gross margin of 0.0% is concerning, but typical for banks as interest income is not considered in this calculation.
The company's balance sheet reveals a relatively high debt-to-equity ratio of 661.00, which is significantly higher than the sector average of 115.00. This elevated leverage could pose a risk if interest rates rise or if the company experiences a decline in its earnings. However, Byline's current ratio of 1.15 indicates that it has sufficient liquid assets to cover its short-term liabilities. The company's total cash position of $70.41 million provides a buffer against unexpected financial challenges.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. While free cash flow is negative at $-22.13M, this is not uncommon for banks due to the nature of their lending activities. The company's operating margin has remained relatively stable over the past few quarters, indicating consistent operational performance. The Q3 FY2024 shows a spike in gross margin to 85.9% and a drop in operating margin to 14.1%, which is an anomaly that requires further investigation to understand the underlying drivers.
Overall, Byline Bancorp's financial health appears to be sound, characterized by strong profitability and consistent growth. However, the company's high debt-to-equity ratio warrants close monitoring. Investors should assess Byline's ability to manage its debt burden and maintain its profitability in the face of potential economic headwinds. The stability score of 82/100 suggests that the company's stock price is relatively stable compared to its peers, which could be attractive to risk-averse investors.
Valuation Assessment
Byline Bancorp's valuation presents a mixed picture, exhibiting both attractive and potentially concerning aspects. The company's P/E ratio of 10.4x is significantly lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 3.5x, further indicating a potential undervaluation based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, it's crucial to consider the context of these valuation metrics. The banking sector has faced significant headwinds in recent years, including low interest rates, increased regulatory scrutiny, and heightened competition. These factors may be contributing to the lower valuations across the sector. Additionally, Byline's relatively small market capitalization of $1.38 billion may also contribute to its lower valuation multiples, as smaller companies often trade at a discount to larger, more established players.
The company's free cash flow is negative at $-22.13 million, which is a concern. While negative free cash flow is not uncommon for banks due to the nature of their lending activities, it does raise questions about the company's ability to generate cash from its operations. Investors should carefully examine the drivers of Byline's free cash flow and assess whether it is likely to improve in the future.
The BCR proprietary quant model assigns Byline a Value score of 75/100, indicating that the stock is relatively attractive based on its valuation metrics. However, the model also assigns a Momentum score of 54/100, suggesting that the stock's price performance and earnings revisions are not particularly strong. This divergence between the Value and Momentum scores highlights the conflicting signals in Byline's valuation profile.
Overall, Byline Bancorp's valuation appears to be attractive based on its P/E and EV/EBITDA ratios. However, investors should carefully consider the context of these metrics, as well as the company's negative free cash flow and relatively weak Momentum score. A more comprehensive valuation analysis, incorporating discounted cash flow analysis and peer comparisons, is necessary to determine whether Byline is truly undervalued.
Risk & Uncertainty
Byline Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its concentration in the Chicago metropolitan area. A downturn in the Chicago economy could lead to increased loan defaults and reduced demand for Byline's banking products and services. This regional concentration makes Byline more vulnerable to local economic shocks than larger, more geographically diversified banks.
Another key risk is the company's relatively high debt-to-equity ratio. Elevated leverage increases Byline's vulnerability to rising interest rates and economic downturns. If interest rates rise, Byline's borrowing costs will increase, which could negatively impact its profitability. In an economic downturn, Byline may struggle to repay its debt, which could lead to financial distress.
Competition within the banking industry is intense, and Byline faces competition from a wide range of institutions, including large national banks, regional banks, and credit unions. These competitors may have greater resources and a wider range of products and services, which could make it difficult for Byline to compete effectively. The company's ability to differentiate itself through personalized service and local market expertise is crucial for mitigating this risk.
Regulatory changes also pose a risk to Byline's business. The banking industry is heavily regulated, and changes in regulations could increase Byline's compliance costs or restrict its ability to generate revenue. For example, changes in capital requirements or lending regulations could negatively impact Byline's profitability and growth prospects.
Bulls Say / Bears Say
The Bull Case
BULL VIEWByline's low P/E and EV/EBITDA ratios suggest it's significantly undervalued compared to peers, offering substantial upside potential as the market recognizes its strong profitability.
BULL VIEWThe bank's focus on the Chicago market allows it to build strong relationships with local businesses, leading to higher customer loyalty and sustainable growth.
The Bear Case
BEAR VIEWByline's high debt-to-equity ratio makes it vulnerable to rising interest rates and economic downturns, potentially leading to financial distress.
BEAR VIEWThe bank's concentration in the Chicago area exposes it to significant regional economic risk, limiting its growth potential and increasing the likelihood of loan defaults.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BY and 4,400+ other equities.
BYLINE BANCORP, INC. exhibits a 92% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.3%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
29.4%
Sector: 21.8%
Net Margin
Bottom-line profitability
24.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-43%
Income Projection audit
A $10,000 investment would generate approximately $141 annually in dividends at the current trailing rate.
