Coastal Financial (CCB) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 141.34K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.98
• Revenue Growth: 9.22%
• EPS Growth: 18.60%
• Country: US
• Employees: 488
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 15,109,090
• 10 Day Avg. Volume: 129,283
• 30 Day Avg. Volume: 141,344
• PEG Ratio: -85.22
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 4.59
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 23.17
• 1Y Price Target: $120.50
• Price Target Upside: 5.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $104.00 ▼(-8.96% Downside)

Coastal Financial's strong financial performance is the primary driver of its score, supported by consistent revenue and profit growth. However, technical indicators show neutral momentum, and the high P/E ratio suggests overvaluation, impacting the overall score.

Coastal Financial Business Overview & Revenue Model

Company Description

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

How the Company Makes Money

Coastal Financial generates revenue through several key streams, primarily from interest income on loans, fees for banking services, and wealth management fees. The bank earns interest income by offering various loan products, such as personal loans, mortgages, and commercial loans, which are typically charged at higher rates than the interest paid on deposits. Additionally, CCB collects fees from account maintenance, transaction services, and other banking operations, contributing to its non-interest income. The wealth management division also plays a significant role, generating revenue through advisory fees, asset management fees, and commissions on investment products. Strategic partnerships with local businesses and community organizations enhance CCB's market presence, driving customer acquisition and retention, which in turn bolsters its overall financial performance.

Coastal Financial Financial Statement Overview

Summary

Coastal Financial shows robust financial performance with strong revenue growth, efficient cost management, and stable margins. The balance sheet is well-capitalized, albeit with high liabilities that need monitoring. Cash flows are strong, supporting growth and stability in financial metrics.

Income Statement

Coastal Financial demonstrates strong revenue growth, with a noticeable increase from $105.5M in 2021 to $558.8M in the TTM. The gross profit margin is healthy, and the net profit margin has improved consistently, reflecting efficient cost management and increased profitability. EBIT and EBITDA margins are stable, indicating operational efficiency. However, the slight decline in revenue in the most recent period requires monitoring.

Balance Sheet

The balance sheet reflects prudent financial management, with a debt-to-equity ratio remaining low, indicating low financial leverage. The equity ratio shows a strong capitalization with stockholders' equity increasing over time. Return on Equity (ROE) has improved, suggesting better utilization of equity capital. However, the high level of liabilities relative to assets could pose risks if not managed properly.

Cash Flow

Coastal Financial's cash flow performance is robust, with operating cash flow growing significantly, supporting strong free cash flow generation. The free cash flow to net income ratio indicates effective conversion of income into cash. While investing cash flows are negative, reflecting capital investments, the overall cash position remains strong. The free cash flow growth rate is positive, but the high financing cash flows warrant caution due to potential increased financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	558.83M	576.61M	440.43M	232.25M	105.46M	70.93M
Gross Profit	185.54M	175.26M	164.79M	132.79M	91.90M	56.97M
EBITDA	65.59M	61.87M	59.46M	52.43M	35.96M	20.50M
Net Income	48.15M	45.22M	44.58M	40.63M	27.00M	15.15M
Balance Sheet
Total Assets	4.34B	4.12B	3.75B	3.14B	2.64B	1.77B
Cash, Cash Equivalents and Short-Term Investments	624.34M	452.55M	582.63M	439.46M	848.49M	183.52M
Total Debt	53.22M	53.28M	53.86M	52.82M	59.19M	199.62M
Total Liabilities	3.89B	3.68B	3.46B	2.90B	2.43B	1.63B
Stockholders Equity	449.92M	438.70M	294.98M	243.49M	201.22M	140.22M
Cash Flow
Free Cash Flow	263.83M	249.89M	185.29M	64.26M	27.25M	13.96M
Operating Cash Flow	274.71M	259.79M	191.54M	67.10M	29.85M	19.33M
Investing Cash Flow	-585.63M	-608.57M	-594.01M	-987.95M	-239.64M	-666.54M
Financing Cash Flow	420.10M	318.17M	543.46M	449.83M	859.84M	622.26M

Coastal Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCB, the sentiment is Positive. The current price of 114.24 is above the 20-day moving average (MA) of 107.13, above the 50-day MA of 102.49, and above the 200-day MA of 89.09, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 83.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCB.

Coastal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBK	76 Outperform	$1.48B	13.47	9.17%	2.90%	1.15%	-0.39%
VBTX	76 Outperform	$1.87B	16.19	7.25%	2.46%	-1.28%	32.40%
WABC	75 Outperform	$1.27B	10.40	14.60%	3.62%	-10.55%	-16.51%
CCB	69 Neutral	$1.73B	34.98	12.23%	―	9.22%	18.60%
Sector *	68 Neutral	$17.79B	11.64	10.28%	3.76%	9.64%	1.17%
TFIN	68 Neutral	$1.44B	142.18	1.52%	―	2.02%	-60.54%
HOPE	65 Neutral	$1.43B	31.08	1.92%	5.06%	-12.55%	-59.97%

Coastal Financial Corporate Events

Coastal Financial Releases Investor Meeting Materials

On July 29, 2025, Coastal Financial Corporation released presentation materials for upcoming investor meetings, which are available on their website. These materials are intended to provide insights into the company’s strategies and performance, potentially impacting investor perceptions and stakeholder decisions.