Stellar Bancorp, Inc.
Stellar Bancorp, Inc. Fundamental Analysis
Stellar Bancorp, Inc. (STEL) shows weak financial fundamentals with a PE ratio of 18.20, profit margin of 17.76%, and ROE of 6.38%. The company generates $0.6B in annual revenue with weak year-over-year growth of -4.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STEL's fundamental strength across five key dimensions:
Efficiency Score
WeakSTEL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTEL trades at attractive valuation levels.
Growth Score
WeakSTEL faces weak or negative growth trends.
Financial Health Score
ModerateSTEL shows balanced financial health with some risks.
Profitability Score
ModerateSTEL maintains healthy but balanced margins.
Key Financial Metrics
Is STEL Expensive or Cheap?
P/E Ratio
STEL trades at 18.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STEL's PEG of -3.29 indicates potential undervaluation.
Price to Book
The market values Stellar Bancorp, Inc. at 1.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.00 times EBITDA. This signals the market has high growth expectations.
How Well Does STEL Make Money?
Net Profit Margin
For every $100 in sales, Stellar Bancorp, Inc. keeps $17.76 as profit after all expenses.
Operating Margin
Core operations generate 21.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.38 in profit for every $100 of shareholder equity.
ROA
Stellar Bancorp, Inc. generates $0.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stellar Bancorp, Inc. produces operating cash flow of $118.83M, showing steady but balanced cash generation.
Free Cash Flow
Stellar Bancorp, Inc. generates strong free cash flow of $117.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.30 in free cash annually.
FCF Yield
STEL converts 6.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How STEL Stacks Against Its Sector Peers
| Metric | STEL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.20 | 18.96 | Neutral |
| ROE | 6.38% | 797.00% | Weak |
| Net Margin | 17.76% | -7699.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 0.23 | 560.28 | Weak Liquidity |
| ROA | 0.97% | -23967.00% (disorted) | Weak |
STEL outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stellar Bancorp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.49%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
26.41%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-11.11%
Industry Style: Value, Dividend, Cyclical
Declining