CoastalSouth Bancshares (COSO) AI Stock Analysis

• Market Cap: $320.70M
• Dividend Yield: N/A
• Average Volume (3M): 61.60K
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 183
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 11,978,921
• 10 Day Avg. Volume: 23,853
• 30 Day Avg. Volume: 61,597
• PEG Ratio: -0.58
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 3.23
• P/FCF Ratio: -15.89
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $27.00
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $26.00 ▲(9.52% Upside)

The score is driven primarily by mixed financial performance: strong profitability and a much improved leverage profile are tempered by a sharp 2024 revenue decline and a swing to negative operating/free cash flow. Technicals are supportive with an established uptrend and healthy momentum, while valuation appears reasonable at an ~11 P/E. A positive recent corporate update (record 2025 earnings and expansion plans) adds support, with a small offset from a noted uptick in nonperforming assets tied to one loan.

Positive Factors

Materially improved leverage

A materially lower debt-to-equity ratio meaningfully reduces balance-sheet risk and regulatory capital strain. This stronger capital posture supports lending capacity, buffers credit losses, and provides strategic flexibility for growth or acquisitions over the medium term.

Sustained profitability and margin expansion

Record annual earnings combined with a wider net interest margin and higher pre-tax pre-provision revenue indicate durable earnings power. Strong core profitability supports reinvestment, dividend capacity, and resilience to cyclical pressure across the next several quarters.

Robust loan and deposit growth plus expansion

Double-digit loan growth and solid deposit inflows reflect healthy core franchise momentum. Geographic expansion and a new local commercial banking team diversify revenue sources, deepen customer relationships, and should sustain organic growth over a multi-quarter horizon.

Negative Factors

Sharp 2024 revenue decline

A severe one-year revenue drop signals volatile top-line performance and challenges in sustaining operating leverage. Persistent revenue weakness can compress margins, limit reinvestment capacity, and increase sensitivity to credit and funding shocks over the coming months.

Negative operating and free cash flow in 2024

A reversal to negative operating and free cash flow undermines internal funding for loan growth, capital returns, and reserve building. Continued cash conversion volatility raises reliance on deposits or funding markets and constrains strategic optionality in the medium term.

Increase in nonperforming assets from a construction loan

Credit concentration into a single senior housing construction loan highlights portfolio vulnerability to CRE and construction credit stress. If deterioration spreads or reserve adequacy proves insufficient, capital and earnings could be pressured, complicating growth plans and capital allocation.

CoastalSouth Bancshares Business Overview & Revenue Model

Company Description

CoastalSouth Bancshares, Inc. operates as the bank holding company of CoastalStates Bank that provides various banking products and services to retail and commercial customers. The company accepts various deposits, such as checking, savings and money market, certificates of deposit, and individual retirement accounts. Its loan products include residential mortgage, home equity loans, cash value line of credit, commercial and government guaranteed lending, and mortgage banker finance, as well as debit and credit cards. The company also offers customized and private banking, treasury management, and digital and telephone banking services. It operates retail banking branches in Hilton Head Island/Bluffton, South Carolina; Savannah, Georgia; and north metro Atlanta, Georgia. The company was incorporated in 2003 and is headquartered in Hilton Head Island, South Carolina.

How the Company Makes Money

CoastalSouth Bancshares Financial Statement Overview

Summary

Profitability and operating margins are solid and the balance sheet has strengthened materially with much lower leverage, supporting resilience. Offsetting this, 2024 revenue fell sharply and both operating cash flow and free cash flow turned negative, making near-term cash stability and top-line momentum the key risks.

Income Statement

Profitability is solid for a regional bank, with net margins consistently strong (roughly mid-to-low 30% recently) and healthy operating profitability. However, revenue momentum is volatile: after multi-year growth through 2023, 2024 revenue fell sharply (-45.51% YoY), and margins also softened versus 2023—suggesting pressure on the top line and less favorable operating leverage.

Balance Sheet

Leverage has improved materially, with debt-to-equity declining to a low level in 2024 (0.08) from elevated levels in prior years (above 1.0 in 2020–2022), indicating a stronger capital position and reduced balance-sheet risk. Returns on equity remain healthy overall (about 11% in 2024, mid-teens in 2022–2023), though slightly down from the prior-year peak, implying good but not accelerating shareholder returns.

Cash Flow

Cash generation is the main weak spot: 2024 operating cash flow and free cash flow turned negative (both meaningfully below zero) after several years of strong positive cash flow, pointing to volatility in cash conversion. While 2022–2023 showed good alignment between cash flow and earnings, the 2024 reversal raises questions around sustainability and near-term cash dynamics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.78M	129.72M	114.38M	76.38M	56.81M	43.87M
Gross Profit	74.56M	70.84M	71.97M	61.68M	50.73M	34.87M
EBITDA	29.06M	29.36M	33.55M	25.46M	16.95M	9.35M
Net Income	23.46M	21.90M	24.48M	18.19M	12.32M	6.37M
Balance Sheet
Total Assets	2.26B	2.10B	2.03B	1.84B	1.61B	1.15B
Cash, Cash Equivalents and Short-Term Investments	31.14M	67.96M	403.35M	395.08M	517.58M	126.98M
Total Debt	25.00M	14.73M	88.67M	140.68M	44.59M	146.04M
Total Liabilities	2.00B	1.90B	1.87B	1.72B	1.49B	1.05B
Stockholders Equity	250.44M	195.23M	156.04M	118.80M	124.93M	101.99M
Cash Flow
Free Cash Flow	-22.24M	-14.08M	36.83M	81.38M	68.69M	-23.21M
Operating Cash Flow	-21.13M	-12.67M	37.14M	83.54M	70.88M	-20.36M
Investing Cash Flow	-99.00M	-17.31M	-176.35M	-502.90M	-226.30M	-298.39M
Financing Cash Flow	47.88M	49.39M	158.80M	223.97M	222.78M	426.48M

CoastalSouth Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCB	77 Outperform	$314.59M	9.19	9.38%	3.57%	10.93%	42.68%
BCML	76 Outperform	$320.94M	13.53	7.07%	2.91%	1.25%	-0.07%
FSBW	75 Outperform	$304.35M	9.44	10.77%	3.17%	4.43%	-12.94%
CZNC	74 Outperform	$385.59M	12.38	9.42%	5.43%	5.76%	21.85%
PLBC	72 Outperform	$345.62M	10.94	12.34%	2.63%	11.98%	-10.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COSO	63 Neutral	$320.70M	10.92	12.63%	―	―	―

CoastalSouth Bancshares Corporate Events

CoastalSouth Bancshares Reports Record 2025 Earnings, Expands Footprint

On January 20, 2026, CoastalSouth Bancshares reported record full-year 2025 net income of $24.9 million, or $2.16 per diluted share, up from $21.9 million, or $2.09 per diluted share, in 2024, alongside fourth-quarter 2025 earnings of $7.1 million, or $0.58 per diluted share, marking sequential and year-on-year improvement. The bank posted solid profitability metrics, including a fourth-quarter return on average assets of 1.24% and an efficiency ratio of 55.34%, while net interest margin widened to 3.60% as funding costs fell and average earning assets expanded. Balance sheet growth was robust, with total assets rising 9.9% year-on-year to $2.31 billion, loans held for investment increasing 14.7% to $1.62 billion, and deposits climbing 8.3% to $1.99 billion by December 31, 2025, underpinned by strong loan production and core deposit growth. Credit quality remained generally sound, with net charge-offs at 0.00% for the quarter and an allowance for credit losses on loans of 1.16%, although nonperforming assets edged up to 0.79% of total assets largely due to a single senior housing construction loan moving to nonaccrual. Management highlighted a 23.6% year-on-year increase in pre-tax pre-provision net revenue and announced a strategic expansion into the Charleston, South Carolina market, assembling a local commercial banking team to drive further loan and deposit growth and deepen the bank’s positioning in the Lowcountry region.

The most recent analyst rating on (COSO) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on CoastalSouth Bancshares stock, see the COSO Stock Forecast page.

CoastalSouth Bancshares Director Resigns Post-IPO

On November 18, 2025, Mr. Boris Gutin announced his resignation from the Board of Directors of CoastalSouth Bancshares, Inc., effective November 19, 2025. His departure follows the company’s recent initial public offering and aligns with GCP Capital Partners’ practice of not having representatives on public company boards. Mr. Gutin expressed support for the company and its management, and his resignation was not due to any disagreements with the company’s operations or policies.

The most recent analyst rating on (COSO) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on CoastalSouth Bancshares stock, see the COSO Stock Forecast page.