STEL Fundamental Analysis - STELLAR BANCORP INC

Fundamental Rating

STEL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 391 industry peers in the Banks industry. Both the profitability and financial health of STEL have multiple concerns. STEL does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year STEL was profitable.

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

STEL had positive earnings in each of the past 5 years.

Each year in the past 5 years STEL had a positive operating cash flow.

1.2 Ratios

The Return On Assets of STEL (1.05%) is better than 70.33% of its industry peers.

STEL's Return On Equity of 6.87% is on the low side compared to the rest of the industry. STEL is outperformed by 64.45% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.05%
ROE	6.87%
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 (25.94%) than 64.19% of its industry peers.

In the last couple of years the Profit Margin of STEL has declined.

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)	25.94%
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.

Compared to 5 years ago, STEL has more shares outstanding

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

2.2 Solvency

STEL has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.

The Debt to FCF ratio of STEL (1.79) is comparable to the rest of the industry.

A Debt/Equity ratio of 0.09 indicates that STEL is not too dependend on debt financing.

With a decent Debt to Equity ratio value of 0.09, STEL is doing good in the industry, outperforming 73.15% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.09
Debt/FCF	1.79
Altman-Z	N/A

ROIC/WACCN/A

WACC17.15%

2.3 Liquidity

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

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WACC

Debt/Equity

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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 -0.93%.

The Earnings Per Share has been growing slightly by 1.82% on average over the past years.

Looking at the last year, STEL shows a decrease in Revenue. The Revenue has decreased by -3.36% in the last year.

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

EPS 1Y (TTM)-0.93%

EPS 3Y6.33%

EPS 5Y1.82%

EPS Q2Q%-8.93%

Revenue 1Y (TTM)-3.36%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-2.53%

3.2 Future

Based on estimates for the next years, STEL will show a decrease in Earnings Per Share. The EPS will decrease by -4.53% on average per year.

The Revenue is expected to grow by 0.58% on average over the next years.

EPS Next Y-9.59%

EPS Next 2Y-4.53%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-1.97%

Revenue Next 2Y0.58%

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

With a Price/Earnings ratio of 14.00, STEL is valued correctly.

STEL's Price/Earnings ratio is a bit more expensive when compared to the industry. STEL is more expensive than 64.71% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.57, STEL is valued a bit cheaper.

The Price/Forward Earnings ratio is 14.81, which indicates a correct valuation of STEL.

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 74.42% of the companies listed in the same industry.

When comparing the Price/Forward Earnings ratio of STEL to the average of the S&P500 Index (23.09), we can say STEL is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	14
Fwd PE	14.81

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, STEL is valued a bit more expensive than 70.08% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.45
EV/EBITDA	N/A

4.3 Compensation for Growth

STEL's earnings are expected to decrease with -4.53% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)7.68

EPS Next 2Y-4.53%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.95%, STEL has a reasonable but not impressive dividend return.

STEL's Dividend Yield is slightly below the industry average, which is at 3.55.

STEL's Dividend Yield is comparable with the S&P500 average which is at 2.32.

		Industry Rank	Sector Rank
Dividend Yield	1.95%

5.2 History

On average, the dividend of STEL grows each year by 8.55%, 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)8.55%

Div Incr Years1

Div Non Decr Years7

5.3 Sustainability

STEL pays out 26.23% of its income as dividend. This is a sustainable payout ratio.

DP26.23%

EPS Next 2Y-4.53%

EPS Next 3YN/A

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STELLAR BANCORP INC

NYSE:STEL (10/23/2025, 2:30:48 PM)

29.69

-0.24 (-0.8%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)07-25 2025-07-25/bmo

Earnings (Next)10-24 2025-10-24/bmo

Inst Owners62%

Inst Owner Change-0.11%

Ins Owners9.82%

Ins Owner Change-0.05%

Market Cap1.52B

Revenue(TTM)424.69M

Net Income(TTM)110.16M

Analysts74.55

Price Target32.23 (8.56%)

Short Float %3.26%

Short Ratio5.5

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.95%

Yearly Dividend0.53

Dividend Growth(5Y)8.55%

DP26.23%

Div Incr Years1

Div Non Decr Years7

Ex-Date09-15 2025-09-15 (0.14)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)7.09%

Min EPS beat(2)2.12%

Max EPS beat(2)12.06%

EPS beat(4)4

Avg EPS beat(4)11.59%

Min EPS beat(4)2.12%

Max EPS beat(4)28.14%

EPS beat(8)6

Avg EPS beat(8)6.33%

EPS beat(12)6

Avg EPS beat(12)-7.39%

EPS beat(16)10

Avg EPS beat(16)-0.01%

Revenue beat(2)0

Avg Revenue beat(2)-2.75%

Min Revenue beat(2)-2.79%

Max Revenue beat(2)-2.7%

Revenue beat(4)0

Avg Revenue beat(4)-1.89%

Min Revenue beat(4)-2.79%

Max Revenue beat(4)-0.58%

Revenue beat(8)1

Avg Revenue beat(8)-1.31%

Revenue beat(12)4

Avg Revenue beat(12)2.27%

Revenue beat(16)7

Avg Revenue beat(16)8.98%

PT rev (1m)0%

PT rev (3m)12.06%

EPS NQ rev (1m)0.73%

EPS NQ rev (3m)8.06%

EPS NY rev (1m)1.14%

EPS NY rev (3m)6.21%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-1.2%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.81%

Valuation

		Industry Rank	Sector Rank
PE	14
Fwd PE	14.81
P/S	3.59
P/FCF	19.45
P/OCF	18.26
P/B	0.95
P/tB	1.49
EV/EBITDA	N/A

EPS(TTM)2.12

EY7.14%

EPS(NY)2.01

Fwd EY6.75%

FCF(TTM)1.53

FCFY5.14%

OCF(TTM)1.63

OCFY5.48%

SpS8.27

BVpS31.23

TBVpS19.96

PEG (NY)N/A

PEG (5Y)7.68

Graham Number38.6

Profitability

		Industry Rank	Sector Rank
ROA	1.05%
ROE	6.87%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	25.94%
GM	N/A
FCFM	18.46%

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

ROICexgc growth 3YN/A

ROICexgc 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-Score5

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0.09
Debt/FCF	1.79
Debt/EBITDA	N/A
Cap/Depr	16.55%
Cap/Sales	1.2%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	71.16%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC17.15%

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)-0.93%

EPS 3Y6.33%

EPS 5Y1.82%

EPS Q2Q%-8.93%

EPS Next Y-9.59%

EPS Next 2Y-4.53%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-3.36%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-2.53%

Revenue Next Year-1.97%

Revenue Next 2Y0.58%

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-51.1%

FCF growth 3Y55.55%

FCF growth 5Y19.01%

OCF growth 1Y-49.77%

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

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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