Stellar Bancorp (STEL) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: 1.71%
• Average Volume (3M): 282.83K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.83
• Revenue Growth: -0.58%
• EPS Growth: -3.02%
• Country: US
• Employees: 1,054
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 51,473,175
• 10 Day Avg. Volume: 306,199
• 30 Day Avg. Volume: 282,829
• PEG Ratio: -9.23
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.21
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $28.50
• Price Target Upside: -11.24% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: $36.00 ▲(12.11%Upside)

Stellar Bancorp's strong financial performance and positive technical indicators are the primary drivers of its healthy stock score. While valuation metrics and some caution from the earnings call introduce minor risks, proactive corporate events enhance the company's growth prospects.

Stellar Bancorp Business Overview & Revenue Model

Company Description

Stellar Bancorp (STEL) is a financial services holding company that operates primarily in the banking sector. It provides a wide range of banking products and services tailored to meet the needs of individuals, small to medium-sized businesses, and commercial entities. The company offers traditional banking services such as checking and savings accounts, loans, credit and debit cards, as well as more specialized financial services including wealth management and investment advisory. Stellar Bancorp is committed to fostering strong community relationships and supporting local economic growth.

How the Company Makes Money

Stellar Bancorp makes money primarily through interest income earned on loans and other interest-earning assets. This includes various types of loans such as personal, commercial, and real estate loans. The company also generates revenue from non-interest income sources, which include fees for services such as account maintenance, transaction processing, and investment advisory services. Additionally, Stellar Bancorp may engage in investment activities, earning returns from securities and other financial investments. Significant partnerships with local businesses and financial institutions can enhance its service offerings and expand its customer base, contributing to revenue growth.

Stellar Bancorp Financial Statement Overview

Summary

Stellar Bancorp exhibits a strong financial position with impressive growth in revenue and profitability. The balance sheet is robust, characterized by no debt, substantial equity, and effective capital management. Cash flows are generally positive, though fluctuations in investing and financing activities could warrant closer monitoring.

Income Statement

Stellar Bancorp has shown strong revenue growth with a consistent increase in total revenue over the years. The net profit margin is solid, indicating efficient cost management. The company has managed to maintain a healthy EBIT margin, although the lack of EBITDA data in recent years could limit a full analysis of operational efficiency.

Balance Sheet

The balance sheet indicates strong financial stability with no total debt and a high equity ratio, reflecting a well-capitalized position. The return on equity remains robust, showcasing effective utilization of shareholder funds. The increasing stockholders' equity further highlights the company's financial health.

Cash Flow

Stellar Bancorp's cash flow statements depict a stable operating cash flow, with free cash flow remaining positive. There's a noticeable fluctuation in investing and financing cash flows, which may suggest varying capital allocation strategies. The operating cash flow to net income ratio is healthy, supporting the company's profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	618.55M	625.45M	615.38M	343.35M	261.75M	249.92M
Gross Profit	430.73M	433.92M	452.38M	258.60M	239.45M	183.47M
EBITDA	174.41M	176.99M	196.35M	76.78M	107.44M	63.61M
Net Income	113.56M	115.00M	130.50M	51.43M	81.55M	45.53M
Balance Sheet
Total Assets	10.43B	10.91B	10.65B	10.90B	7.10B	3.95B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.10B	1.79B	2.18B	2.53B	738.69M
Total Debt	190.06M	70.11M	159.76M	173.29M	212.94M	66.45M
Total Liabilities	8.82B	9.30B	9.13B	9.52B	6.29B	3.40B
Stockholders Equity	1.61B	1.61B	1.52B	1.38B	816.47M	546.45M
Cash Flow
Free Cash Flow	90.97M	127.96M	161.36M	105.25M	104.45M	53.88M
Operating Cash Flow	95.84M	132.62M	168.22M	109.07M	107.38M	61.06M
Investing Cash Flow	503.10M	246.09M	295.25M	73.76M	-754.82M	-961.10M
Financing Cash Flow	-438.11M	133.27M	-435.94M	-568.63M	982.19M	976.56M

Stellar Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.11
• 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 STEL, the sentiment is Positive. The current price of 32.11 is above the 20-day moving average (MA) of 30.25, above the 50-day MA of 28.34, and above the 200-day MA of 27.80, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STEL.

Stellar Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEL	81 Outperform	$1.65B	14.78	7.40%	1.71%	-0.58%	-3.02%
NBHC	80 Outperform	$1.54B	13.02	9.17%	2.88%	0.60%	-6.08%
GABC	79 Outperform	$1.52B	16.36	8.85%	2.75%	16.91%	-12.55%
STBA	77 Outperform	$1.45B	11.14	9.47%	3.56%	-0.56%	―
CUBI	77 Outperform	$1.98B	15.72	8.14%	―	-5.67%	-44.11%
SRCE	72 Outperform	$1.52B	10.99	12.84%	2.36%	9.30%	15.19%
Sector *	61 Neutral	C$15.12B	7.06	23.28%	5.39%	33.61%	-23.38%

Stellar Bancorp Corporate Events

Stellar Bancorp Reports Strong Q2 2025 Financial Results

Stellar Bancorp, Inc. reported its financial results for the second quarter of 2025, showing a net income of $26.4 million, an increase from the previous quarter. The company experienced growth in loan originations and deposit growth, and anticipates further growth due to favorable economic conditions and strategic positioning in the Texas market. Stellar’s financial highlights include a solid profitability with a net interest margin of 4.18%, a strong capital position with a risk-based capital ratio of 15.98%, and low net charge-offs. The company also repurchased 791 thousand shares during the quarter.

The most recent analyst rating on (STEL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Stellar Bancorp stock, see the STEL Stock Forecast page.

Stellar Bancorp Director William Wilson Resigns

On June 12, 2025, William E. Wilson, Jr., a member of the Board of Directors of Stellar Bancorp, Inc., resigned from his position, effective immediately. Mr. Wilson, who had been a director since 2017 and served on the Audit Committee, left without any disagreements with the company’s operations or policies. The Board and management expressed their gratitude for his contributions to the company and its predecessor, CBTX, Inc.

The most recent analyst rating on (STEL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Stellar Bancorp stock, see the STEL Stock Forecast page.

Stellar Bancorp Increases Quarterly Cash Dividend

On May 21, 2025, Stellar Bancorp, Inc. adopted an Executive Severance Plan, offering severance benefits to eligible executives upon qualifying terminations of employment. This plan includes salary continuation payments, pro-rata bonuses, and benefit payments, with provisions to comply with tax regulations and company policies. Additionally, on the same date, the company held its Annual Meeting of Shareholders, where five Class III directors were elected, and several proposals were voted on, including the approval of the Amended and Restated 2022 Omnibus Incentive Plan and the ratification of Crowe LLP as the independent registered public accounting firm. On May 22, 2025, the company announced an increase in its quarterly cash dividend to $0.14 per share, payable on June 30, 2025.

The most recent analyst rating on (STEL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Stellar Bancorp stock, see the STEL Stock Forecast page.

Stellar Bancorp Reports Q1 2025 Financial Results

Stellar Bancorp reported its first quarter 2025 financial results, showing a slight decrease in net income to $24.7 million compared to the previous quarter. The company is focusing on growth and adapting to market conditions, despite uncertainties introduced by tariffs. Stellar Bancorp’s financial highlights include a solid net interest margin and a strong capital position, although total assets and deposits decreased due to seasonal factors and competitive market conditions. The company also repurchased shares and announced a new share repurchase program. Nonperforming assets increased, leading to a higher provision for credit losses.