STELLAR BANCORP INC (STEL)
US8589271068 - Common Stock
STEL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 406 industry peers in the Banks industry. Both the profitability and financial health of STEL have multiple concerns. STEL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STEL had positive earnings in the past year.
In the past year STEL had a positive cash flow from operations.
In the past 5 years STEL has always been profitable.
In the past 5 years STEL always reported a positive cash flow from operatings.
1.2 Ratios
STEL has a Return On Assets of 1.10%. This is in the better half of the industry: STEL outperforms 74.75% of its industry peers.
STEL's Return On Equity of 7.20% is in line compared to the rest of the industry. STEL outperforms 42.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 7.2% | ||
| ROIC | N/A |
ROA(3y)0.83%
ROA(5y)0.92%
ROE(3y)6.21%
ROE(5y)6.58%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STEL's Profit Margin of 26.86% is fine compared to the rest of the industry. STEL outperforms 71.04% of its industry peers.
STEL's Profit Margin has declined in the last couple of years.
STEL does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 26.86% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y-3.63%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
STEL does not have a ROIC to compare to the WACC, probably because it is not profitable.
STEL has more shares outstanding than it did 1 year ago.
STEL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STEL has been reduced compared to a year ago.
2.2 Solvency
STEL has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
STEL has a Debt to FCF ratio of 1.09. This is in the better half of the industry: STEL outperforms 77.72% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that STEL is not too dependend on debt financing.
The Debt to Equity ratio of STEL (0.10) is better than 73.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.27%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
STEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.61%, which is quite good.
Measured over the past 5 years, STEL shows a small growth in Earnings Per Share. The EPS has been growing by 5.33% on average per year.
The Revenue has decreased by -8.18% in the past year.
Measured over the past years, STEL shows a very strong growth in Revenue. The Revenue has been growing by 27.12% on average per year.
EPS 1Y (TTM)10.61%
EPS 3Y32.22%
EPS 5Y5.33%
EPS Q2Q%8.62%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y47.62%
Revenue growth 5Y27.12%
Sales Q2Q%-0.73%
3.2 Future
Based on estimates for the next years, STEL will show a decrease in Earnings Per Share. The EPS will decrease by -5.53% on average per year.
The Revenue is expected to decrease by -0.67% on average over the next years.
EPS Next Y-9.74%
EPS Next 2Y-11.11%
EPS Next 3Y-5.53%
EPS Next 5YN/A
Revenue Next Year-7.13%
Revenue Next 2Y-3.13%
Revenue Next 3Y-0.67%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.06, the valuation of STEL can be described as correct.
STEL's Price/Earnings is on the same level as the industry average.
STEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 14.78 indicates a correct valuation of STEL.
Based on the Price/Forward Earnings ratio, STEL is valued a bit more expensive than the industry average as 68.56% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, STEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
STEL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STEL is cheaper than 71.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
STEL's earnings are expected to decrease with -5.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.45
EPS Next 2Y-11.11%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
STEL has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.02, STEL is paying slightly less dividend.
STEL's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
On average, the dividend of STEL grows each year by 21.11%, which is quite nice.
STEL has been paying a dividend for at least 10 years, so it has a reliable track record.
As STEL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.11%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
23.69% of the earnings are spent on dividend by STEL. This is a low number and sustainable payout ratio.
DP23.69%
EPS Next 2Y-11.11%
EPS Next 3Y-5.53%
STELLAR BANCORP INC
NYSE:STEL (12/20/2024, 8:04:01 PM)
After market: 28.61 0 (0%)28.61
+0.14 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.16%
Inst Owner Change2.82%
Ins Owners9.46%
Ins Owner Change-0.89%
Market Cap1.53B
Analysts78.18
Price Target29.38 (2.69%)
Short Float %0.86%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Dividend Growth(5Y)21.11%
DP23.69%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.5%
Min EPS beat(2)14.86%
Max EPS beat(2)28.14%
EPS beat(4)3
Avg EPS beat(4)8.33%
Min EPS beat(4)-9.75%
Max EPS beat(4)28.14%
EPS beat(8)3
Avg EPS beat(8)-8.77%
EPS beat(12)6
Avg EPS beat(12)-6.18%
EPS beat(16)10
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)2.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)6
Avg Revenue beat(12)12.33%
Revenue beat(16)7
Avg Revenue beat(16)9.05%
PT rev (1m)1.41%
PT rev (3m)0.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.49%
EPS NY rev (1m)0%
EPS NY rev (3m)7.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 14.78 | ||
| P/S | 3.51 | ||
| P/FCF | 9.83 | ||
| P/OCF | 9.55 | ||
| P/B | 0.94 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.19
EY7.65%
EPS(NY)1.94
Fwd EY6.77%
FCF(TTM)2.91
FCFY10.17%
OCF(TTM)3
OCFY10.48%
SpS8.16
BVpS30.45
TBVpS19.3
PEG (NY)N/A
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 7.2% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 26.86% | ||
| GM | N/A | ||
| FCFM | 35.65% |
ROA(3y)0.83%
ROA(5y)0.92%
ROE(3y)6.21%
ROE(5y)6.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y-3.63%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.09 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 14.25% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 132.76% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC15.27%
ROIC/WACCN/A
Cap/Depr(3y)21.84%
Cap/Depr(5y)93.3%
Cap/Sales(3y)1.09%
Cap/Sales(5y)2.88%
Profit Quality(3y)141.34%
Profit Quality(5y)126.33%
High Growth Momentum
Growth
EPS 1Y (TTM)10.61%
EPS 3Y32.22%
EPS 5Y5.33%
EPS Q2Q%8.62%
EPS Next Y-9.74%
EPS Next 2Y-11.11%
EPS Next 3Y-5.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y47.62%
Revenue growth 5Y27.12%
Sales Q2Q%-0.73%
Revenue Next Year-7.13%
Revenue Next 2Y-3.13%
Revenue Next 3Y-0.67%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y192.67%
FCF growth 3Y81.92%
FCF growth 5Y27.44%
OCF growth 1Y196.95%
OCF growth 3Y60.88%
OCF growth 5Y27.82%