Stellar Bancorp (STEL) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 1.77%
• Average Volume (3M): 282.17K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.83
• Revenue Growth: -2.85%
• EPS Growth: -0.33%
• Country: US
• Employees: 1,054
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 51,352,646
• 10 Day Avg. Volume: 245,295
• 30 Day Avg. Volume: 282,168
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $32.33
• Price Target Upside: 4.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $35.00 ▲(12.94% Upside)

Stellar Bancorp's overall stock score reflects strong financial performance and positive earnings call sentiment. The company's robust profitability, effective cost management, and strategic initiatives like share repurchases contribute positively. However, challenges in revenue growth and valuation concerns slightly temper the outlook.

Stellar Bancorp Business Overview & Revenue Model

Company Description

Stellar Bancorp, Inc. operates as the bank holding company that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company's loan portfolio comprises commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machine services, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. It has locations in the Southeast region, including Houston, The Woodlands, Sugar Land, Beaumont, and Port Arthur, as well as Dallas. The company was founded in 2007 and is headquartered in Houston, Texas.

How the Company Makes Money

Stellar Bancorp generates revenue primarily through interest income from loans and mortgages, which are funded by customer deposits and other borrowings. Key revenue streams include interest on commercial and consumer loans, as well as fees from mortgage origination and servicing. Additionally, the company earns non-interest income from services such as wealth management, transaction fees, and investment services. Significant partnerships with fintech companies and other financial institutions enhance its service offerings and customer reach, contributing to overall earnings.

Stellar Bancorp Financial Statement Overview

Summary

Stellar Bancorp's financial performance is strong, with consistent revenue growth, robust profitability, and efficient cost management. The balance sheet is solid with low leverage, and cash flow generation is robust. Slight declines in recent periods should be monitored but are outweighed by overall financial health.

Income Statement

Stellar Bancorp has demonstrated strong financial performance with a consistent increase in total revenue and net income over the years. The gross profit margin remains robust, indicating efficient cost management. However, there has been a slight decline in revenue and net income in the TTM period, which should be monitored. The company maintains healthy EBIT and EBITDA margins, showcasing effective operations.

Balance Sheet

The company exhibits a solid balance sheet with a strong equity position, as reflected in a healthy equity ratio. The debt-to-equity ratio is low, suggesting conservative leverage use. Return on equity is commendable, though there is a slight increase in total debt in the TTM period, which could pose a potential risk if not managed well.

Cash Flow

Stellar Bancorp's cash flow performance is strong, with steady operating cash flows and free cash flow generation, ensuring liquidity for operations and investments. The operating cash flow to net income ratio indicates good cash conversion, although there is a decrease in free cash flow growth in the TTM period compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	609.45M	625.45M	615.38M	343.35M	261.75M	249.92M
Gross Profit	425.01M	433.92M	452.38M	258.60M	239.45M	183.47M
EBITDA	169.28M	176.99M	196.35M	76.78M	107.44M	63.61M
Net Income	110.16M	115.00M	130.50M	51.43M	81.55M	45.53M
Balance Sheet
Total Assets	10.49B	10.91B	10.65B	10.90B	7.10B	3.95B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.10B	1.79B	2.18B	2.53B	738.69M
Total Debt	157.22M	70.11M	159.76M	173.29M	212.94M	66.45M
Total Liabilities	8.89B	9.30B	9.13B	9.52B	6.29B	3.40B
Stockholders Equity	1.60B	1.61B	1.52B	1.38B	816.47M	546.45M
Cash Flow
Free Cash Flow	80.37M	127.96M	161.36M	105.25M	104.45M	53.88M
Operating Cash Flow	83.48M	132.62M	168.22M	109.07M	107.38M	61.06M
Investing Cash Flow	358.06M	246.09M	295.25M	73.76M	-754.82M	-961.10M
Financing Cash Flow	-353.69M	133.27M	-435.94M	-568.63M	982.19M	976.56M

Stellar Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.99 is above the 20-day moving average (MA) of 30.18, above the 50-day MA of 30.09, and above the 200-day MA of 28.28, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 67.48 is Neutral, 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
NBHC	80 Outperform	$1.50B	12.71	9.15%	3.02%	0.60%	-6.31%
STBA	79 Outperform	$1.53B	11.75	9.47%	3.44%	-0.57%	-3.92%
STEL	77 Outperform	$1.61B	14.47	7.12%	1.77%	-2.85%	-0.33%
GABC	77 Outperform	$1.56B	15.86	9.80%	2.76%	22.42%	-5.59%
CUBI	77 Outperform	$2.21B	17.30	8.17%	―	-7.45%	-45.67%
SRCE	75 Outperform	$1.59B	11.22	12.49%	2.31%	6.43%	11.69%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

Stellar Bancorp Corporate Events

Stellar Bancorp Announces Redemption of Subordinated Notes

On August 29, 2025, Stellar Bancorp, Inc. announced its plan to redeem $30 million of its $60 million 4.70% Fixed-to-Floating Rate Subordinated Notes due 2029. The redemption is set for October 1, 2025, at a price equal to 100% of the principal amount plus any accrued interest, impacting the company’s financial obligations and potentially its market positioning.

Stellar Bancorp Declares Quarterly Cash Dividend

On August 27, 2025, Stellar Bancorp‘s Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on September 30, 2025, to shareholders recorded by September 15, 2025. This announcement underscores the company’s commitment to returning value to its shareholders and may positively impact investor sentiment and the company’s market positioning.

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.

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.