Coastal Financial (CCB) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.00
• Revenue Growth: -2.11%
• EPS Growth: 6.48%
• Country: US
• Employees: 488
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 15,121,263
• 10 Day Avg. Volume: 124,458
• 30 Day Avg. Volume: 113,778
• 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: 0.95
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 25.01
• 1Y Price Target: $155.00
• Price Target Upside: 30.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $129.00 ▲(8.43% Upside)

Coastal Financial's overall stock score is driven by strong technical indicators and positive corporate events, indicating a promising outlook. The solid financial performance supports this view, although high valuation metrics suggest caution. The absence of earnings call data limits further insights.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong business performance and potential for sustained growth through enhanced credit offerings.

New Product Offerings

The introduction of new financial products can drive future revenue growth and enhance market competitiveness by meeting diverse customer needs.

Management Quality

The new CFO's extensive experience is likely to strengthen financial operations and strategic initiatives, supporting long-term business objectives.

Negative Factors

Revenue Decline

A decline in revenue growth could signal challenges in maintaining market share or adapting to competitive pressures, impacting future performance.

Cash Flow Challenges

Negative free cash flow growth may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Leadership Turnover

Frequent leadership changes can disrupt strategic continuity and affect employee morale, potentially impacting long-term strategic execution.

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 primarily through interest income from loans and mortgages, fees from account services, and investment management services. The bank earns interest on various loan products, including personal loans, business loans, and mortgages, which are typically higher than the interest paid on customer deposits. Additionally, CCB collects fees for services such as account maintenance, ATM usage, and overdraft protection. Revenue is also supplemented through investment advisory services, where the bank offers wealth management and financial planning to clients, earning fees based on assets under management. Strategic partnerships with local businesses and community organizations enhance customer acquisition and retention, further contributing to the bank's profitability.

Coastal Financial Financial Statement Overview

Summary

Coastal Financial demonstrates a solid financial foundation with strong profitability and a stable balance sheet. Despite concerns about recent revenue and free cash flow declines, the company's ability to maintain healthy margins and manage debt effectively positions it well for future growth.

Income Statement

Coastal Financial's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.79%, which is a concern. However, the company maintains healthy profitability with a net profit margin of 9.62% and an EBIT margin of 12.35%. The gross profit margin is stable at 29.67%. Despite the recent revenue dip, the company has shown resilience in maintaining its margins.

Balance Sheet

The balance sheet of Coastal Financial is strong, with a low debt-to-equity ratio of 0.11, indicating prudent financial management. The return on equity is solid at 10.46%, reflecting efficient use of equity capital. The equity ratio stands at 10.44%, suggesting a stable financial position with adequate equity backing.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate of -1.39% in the TTM period. However, the operating cash flow to net income ratio is robust at 52.21, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing effective conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.87M	576.61M	440.43M	232.25M	105.46M	70.93M
Gross Profit	200.31M	175.26M	164.79M	132.79M	91.90M	56.97M
EBITDA	67.51M	61.87M	59.46M	52.43M	35.96M	20.50M
Net Income	47.72M	45.22M	44.58M	40.63M	27.00M	15.15M
Balance Sheet
Total Assets	4.55B	4.12B	3.75B	3.14B	2.64B	1.77B
Cash, Cash Equivalents and Short-Term Investments	642.29M	452.55M	582.63M	439.46M	848.49M	183.52M
Total Debt	52.95M	53.28M	53.86M	52.82M	59.19M	199.62M
Total Liabilities	4.08B	3.68B	3.46B	2.90B	2.43B	1.63B
Stockholders Equity	475.28M	438.70M	294.98M	243.49M	201.22M	140.22M
Cash Flow
Free Cash Flow	249.20M	249.89M	185.29M	64.26M	27.25M	13.96M
Operating Cash Flow	258.74M	259.79M	191.54M	67.10M	29.85M	19.33M
Investing Cash Flow	-535.34M	-608.57M	-594.01M	-987.95M	-239.64M	-666.54M
Financing Cash Flow	434.84M	318.17M	543.46M	449.83M	859.84M	622.26M

Coastal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCB, the sentiment is Negative. The current price of 118.97 is above the 20-day moving average (MA) of 115.80, above the 50-day MA of 111.11, and above the 200-day MA of 100.96, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCB.

Coastal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	79 Outperform	$1.66B	9.42	21.81%	0.27%	7.80%	19.38%
LKFN	76 Outperform	$1.46B	15.09	13.50%	3.37%	-2.90%	-1.47%
STEL	76 Outperform	$1.62B	15.85	6.38%	1.82%	-4.40%	-8.80%
CCB	75 Outperform	$1.77B	34.94	11.82%	―	-2.11%	6.48%
LOB	72 Outperform	$1.68B	24.56	6.31%	0.33%	10.41%	-19.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CLBK	60 Neutral	$1.60B	106.89	1.34%	―	-3.60%	-8.63%

Coastal Financial Corporate Events

Coastal Financial Reports Strong Q3 2025 Results

Coastal Financial Corporation released its third-quarter 2025 financial results, indicating a 4.6% increase in total loans receivable and a 1.5% rise in total deposits compared to the previous quarter. The company reported a 21.1% increase in total revenue, driven by higher credit enhancement revenue, and a 23.2% rise in net income from the last quarter. The expansion of partner programs and new product offerings, such as lines of credit and credit cards, are expected to drive future revenue growth. The company also highlighted the testing of Robinhood’s deposit program and the increase in fee-earning debit and credit cards, reflecting strong partner and customer engagement.

The most recent analyst rating on (CCB) stock is a Hold with a $112.00 price target. To see the full list of analyst forecasts on Coastal Financial stock, see the CCB Stock Forecast page.