STEL Fundamental Analysis - STELLAR BANCORP INC

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to STEL. STEL was compared to 396 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.

In the past 5 years STEL has always been profitable.

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

1.2 Ratios

Looking at the Return On Assets, with a value of 1.09%, STEL is in the better half of the industry, outperforming 71.97% of the companies in the same industry.

STEL has a worse Return On Equity (7.05%) than 61.11% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.09%
ROE	7.05%
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's Profit Margin of 26.57% is fine compared to the rest of the industry. STEL outperforms 68.43% 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)	26.57%
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.

Compared to 1 year ago, STEL has more shares outstanding

STEL has more shares outstanding than it did 5 years ago.

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

2.2 Solvency

STEL has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as STEL would need 2.09 years to pay back of all of its debts.

STEL has a Debt to FCF ratio (2.09) which is comparable to the rest of the industry.

STEL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.

STEL has a better Debt to Equity ratio (0.12) than 65.91% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.12
Debt/FCF	2.09
Altman-Z	N/A

ROIC/WACCN/A

WACC18.34%

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

The earnings per share for STEL have decreased by -3.13% in the last year.

Measured over the past 5 years, STEL shows a small growth in Earnings Per Share. The EPS has been growing by 1.82% on average per year.

The Revenue has decreased by -4.27% in the past year.

Measured over the past years, STEL shows a very strong growth in Revenue. The Revenue has been growing by 22.76% on average per year.

EPS 1Y (TTM)-3.13%

EPS 3Y6.33%

EPS 5Y1.82%

EPS Q2Q%-6.12%

Revenue 1Y (TTM)-4.27%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-3.37%

3.2 Future

The Earnings Per Share is expected to decrease by -5.06% on average over the next years.

The Revenue is expected to grow by 1.29% on average over the next years.

EPS Next Y-14.88%

EPS Next 2Y-5.06%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-1.17%

Revenue Next 2Y1.29%

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

The Price/Earnings ratio is 12.65, which indicates a correct valuation of STEL.

STEL's Price/Earnings ratio is in line with the industry average.

STEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.

Based on the Price/Forward Earnings ratio of 13.84, the valuation of STEL can be described as correct.

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 72.47% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, STEL is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	12.65
Fwd PE	13.84

4.2 Price Multiples

STEL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. STEL is more expensive than 65.91% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.53
EV/EBITDA	N/A

4.3 Compensation for Growth

STEL's earnings are expected to decrease with -5.06% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)6.94

EPS Next 2Y-5.06%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.09%, STEL has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.51, STEL is paying slightly less dividend.

Compared to an average S&P500 Dividend Yield of 2.39, STEL has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.09%

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.

STEL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Dividend Growth(5Y)8.55%

Div Incr Years1

Div Non Decr Years7

5.3 Sustainability

25.20% of the earnings are spent on dividend by STEL. This is a low number and sustainable payout ratio.

DP25.2%

EPS Next 2Y-5.06%

EPS Next 3YN/A

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STELLAR BANCORP INC

NYSE:STEL (6/6/2025, 8:04:01 PM)

After market: 27.44 0 (0%)

27.44

+0.66 (+2.46%)

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 Change-0.81%

Ins Owners9.39%

Ins Owner Change0.62%

Market Cap1.41B

Analysts74.55

Price Target28.76 (4.81%)

Short Float %2.27%

Short Ratio4.03

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.09%

Yearly Dividend0.53

Dividend Growth(5Y)8.55%

DP25.2%

Div Incr Years1

Div Non Decr Years7

Ex-Date06-16 2025-06-16 (0.14)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)3.08%

Min EPS beat(2)2.12%

Max EPS beat(2)4.04%

EPS beat(4)4

Avg EPS beat(4)12.29%

Min EPS beat(4)2.12%

Max EPS beat(4)28.14%

EPS beat(8)5

Avg EPS beat(8)4.22%

EPS beat(12)6

Avg EPS beat(12)-7.46%

EPS beat(16)10

Avg EPS beat(16)0.11%

Revenue beat(2)0

Avg Revenue beat(2)-2.13%

Min Revenue beat(2)-2.79%

Max Revenue beat(2)-1.47%

Revenue beat(4)0

Avg Revenue beat(4)-1.64%

Min Revenue beat(4)-2.79%

Max Revenue beat(4)-0.58%

Revenue beat(8)1

Avg Revenue beat(8)-1.54%

Revenue beat(12)5

Avg Revenue beat(12)6.81%

Revenue beat(16)7

Avg Revenue beat(16)8.88%

PT rev (1m)-6.62%

PT rev (3m)-7.84%

EPS NQ rev (1m)0.45%

EPS NQ rev (3m)-1.28%

EPS NY rev (1m)-0.11%

EPS NY rev (3m)-0.51%

Revenue NQ rev (1m)-1.09%

Revenue NQ rev (3m)-2.4%

Revenue NY rev (1m)-0.92%

Revenue NY rev (3m)-2.1%

Valuation

		Industry Rank	Sector Rank
PE	12.65
Fwd PE	13.84
P/S	3.3
P/FCF	15.53
P/OCF	14.74
P/B	0.88
P/tB	1.38
EV/EBITDA	N/A

EPS(TTM)2.17

EY7.91%

EPS(NY)1.98

Fwd EY7.23%

FCF(TTM)1.77

FCFY6.44%

OCF(TTM)1.86

OCFY6.79%

SpS8.3

BVpS31.3

TBVpS19.94

PEG (NY)N/A

PEG (5Y)6.94

Profitability

		Industry Rank	Sector Rank
ROA	1.09%
ROE	7.05%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	26.57%
GM	N/A
FCFM	21.29%

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-Score5

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0.12
Debt/FCF	2.09
Debt/EBITDA	N/A
Cap/Depr	15.51%
Cap/Sales	1.14%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	80.11%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC18.34%

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-14.88%

EPS Next 2Y-5.06%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-4.27%

Revenue growth 3Y44.66%

Revenue growth 5Y22.76%

Sales Q2Q%-3.37%

Revenue Next Year-1.17%

Revenue Next 2Y1.29%

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-33.69%

FCF growth 3Y55.55%

FCF growth 5Y19.01%

OCF growth 1Y-32.51%

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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