STELLAR BANCORP INC(NYSE:STEL) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to STEL. STEL was compared to 398 industry peers in the Banks industry. The financial health of STEL is average, but there are quite some concerns on its profitability. STEL does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

STEL had positive earnings in the past year.

STEL had a positive operating cash flow in the past year.

Each year in the past 5 years STEL has been profitable.

STEL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

STEL's Return On Assets of 1.05% is fine compared to the rest of the industry. STEL outperforms 71.61% of its industry peers.

Looking at the Return On Equity, with a value of 7.15%, STEL is doing worse than 60.80% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.05%
ROE	7.15%
ROIC	N/A

ROA(3y)0.92%

ROA(5y)0.84%

ROE(3y)6.48%

ROE(5y)6.12%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

STEL has a better Profit Margin (26.68%) than 69.35% of its industry peers.

STEL's Profit Margin has declined in the last couple of years.

The Operating Margin and Gross Margin are not available for STEL so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	26.68%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y2.19%

PM growth 5Y-3.97%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

STEL does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for STEL has been increased compared to 1 year ago.

The number of shares outstanding for STEL has been increased compared to 5 years ago.

STEL has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of STEL is 0.55, which is an excellent value as it means it would take STEL, only 0.55 years of fcf income to pay off all of its debts.

STEL has a better Debt to FCF ratio (0.55) than 82.41% of its industry peers.

STEL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.

The Debt to Equity ratio of STEL (0.04) is better than 81.91% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.04
Debt/FCF	0.55
Altman-Z	N/A

ROIC/WACCN/A

WACC18.7%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

STEL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.13%.

STEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.82% yearly.

The Revenue has decreased by -6.56% in the past year.

The Revenue has been growing by 22.76% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-3.13%

EPS 3Y6.33%

EPS 5Y1.82%

EPS Q2Q%-6.12%

Revenue 1Y (TTM)-6.56%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-3.37%

3.2 Future

Based on estimates for the next years, STEL will show a decrease in Earnings Per Share. The EPS will decrease by -4.48% on average per year.

STEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.

EPS Next Y-14.78%

EPS Next 2Y-4.48%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year0.8%

Revenue Next 2Y2.65%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.68 indicates a reasonable valuation of STEL.

STEL's Price/Earnings is on the same level as the industry average.

When comparing the Price/Earnings ratio of STEL to the average of the S&P500 Index (28.87), we can say STEL is valued rather cheaply.

With a Price/Forward Earnings ratio of 12.62, STEL is valued correctly.

Compared to the rest of the industry, the Price/Forward Earnings ratio of STEL indicates a slightly more expensive valuation: STEL is more expensive than 67.84% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, STEL is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	11.68
Fwd PE	12.62

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEL is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	10.35
EV/EBITDA	N/A

4.3 Compensation for Growth

STEL's earnings are expected to decrease with -4.48% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)6.41

EPS Next 2Y-4.48%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

STEL has a Yearly Dividend Yield of 2.16%.

STEL's Dividend Yield is slightly below the industry average, which is at 3.53.

Compared to an average S&P500 Dividend Yield of 2.46, STEL has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.16%

5.2 History

On average, the dividend of STEL grows each year by 8.55%, which is quite nice.

STEL has paid a dividend for at least 10 years, which is 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)8.55%

Div Incr Years0

Div Non Decr Years6

5.3 Sustainability

STEL pays out 24.62% of its income as dividend. This is a sustainable payout ratio.

DP24.62%

EPS Next 2Y-4.48%

EPS Next 3YN/A

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STELLAR BANCORP INC

NYSE:STEL (4/28/2025, 8:04:01 PM)

Premarket: 25.28 -0.06 (-0.24%)

25.34

-0.53 (-2.05%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)04-25 2025-04-25/bmo

Earnings (Next)07-24 2025-07-24/bmo

Inst Owners58.49%

Inst Owner Change0.09%

Ins Owners9.39%

Ins Owner Change-0.25%

Market Cap1.32B

Analysts74.55

Price Target30.8 (21.55%)

Short Float %1.86%

Short Ratio3.64

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.16%

Yearly Dividend0.53

Dividend Growth(5Y)8.55%

DP24.62%

Div Incr Years0

Div Non Decr Years6

Ex-Date03-17 2025-03-17 (0.14)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)16.09%

Min EPS beat(2)4.04%

Max EPS beat(2)28.14%

EPS beat(4)4

Avg EPS beat(4)11.78%

Min EPS beat(4)0.08%

Max EPS beat(4)28.14%

EPS beat(8)4

Avg EPS beat(8)3.6%

EPS beat(12)6

Avg EPS beat(12)-6.27%

EPS beat(16)10

Avg EPS beat(16)0.97%

Revenue beat(2)0

Avg Revenue beat(2)-1.03%

Min Revenue beat(2)-1.47%

Max Revenue beat(2)-0.58%

Revenue beat(4)0

Avg Revenue beat(4)-1.14%

Min Revenue beat(4)-1.71%

Max Revenue beat(4)-0.58%

Revenue beat(8)2

Avg Revenue beat(8)-1.18%

Revenue beat(12)6

Avg Revenue beat(12)12.24%

Revenue beat(16)7

Avg Revenue beat(16)9.01%

PT rev (1m)-1.31%

PT rev (3m)-1.95%

EPS NQ rev (1m)0%

EPS NQ rev (3m)2.15%

EPS NY rev (1m)-0.4%

EPS NY rev (3m)-2.96%

Revenue NQ rev (1m)-0.06%

Revenue NQ rev (3m)1.29%

Revenue NY rev (1m)-0.15%

Revenue NY rev (3m)-0.23%

Valuation

		Industry Rank	Sector Rank
PE	11.68
Fwd PE	12.62
P/S	3.07
P/FCF	10.35
P/OCF	9.99
P/B	0.82
P/tB	1.3
EV/EBITDA	N/A

EPS(TTM)2.17

EY8.56%

EPS(NY)2.01

Fwd EY7.92%

FCF(TTM)2.45

FCFY9.66%

OCF(TTM)2.54

OCFY10.01%

SpS8.25

BVpS30.76

TBVpS19.48

PEG (NY)N/A

PEG (5Y)6.41

Profitability

		Industry Rank	Sector Rank
ROA	1.05%
ROE	7.15%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	26.68%
GM	N/A
FCFM	29.69%

ROA(3y)0.92%

ROA(5y)0.84%

ROE(3y)6.48%

ROE(5y)6.12%

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 3Y2.19%

PM growth 5Y-3.97%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0.04
Debt/FCF	0.55
Debt/EBITDA	N/A
Cap/Depr	14.56%
Cap/Sales	1.08%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	111.26%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score6

WACC18.7%

ROIC/WACCN/A

Cap/Depr(3y)20.35%

Cap/Depr(5y)84.02%

Cap/Sales(3y)1.27%

Cap/Sales(5y)2.77%

Profit Quality(3y)146.59%

Profit Quality(5y)127.36%

High Growth Momentum

Growth

EPS 1Y (TTM)-3.13%

EPS 3Y6.33%

EPS 5Y1.82%

EPS Q2Q%-6.12%

EPS Next Y-14.78%

EPS Next 2Y-4.48%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-6.56%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-3.37%

Revenue Next Year0.8%

Revenue Next 2Y2.65%

Revenue Next 3YN/A

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 1Y-20.7%

FCF growth 3Y55.55%

FCF growth 5Y19.01%

OCF growth 1Y-21.16%

OCF growth 3Y56.2%

OCF growth 5Y18.78%

STELLAR BANCORP INC (STEL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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