Stellar Bancorp, Inc. (STEL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Stellar Bancorp, Inc. stock (STEL) is currently trading at $36.25. Stellar Bancorp, Inc. PE ratio is 17.87. Stellar Bancorp, Inc. PS ratio (Price-to-Sales) is 4.37. Analyst consensus price target for STEL is $38.00. WallStSmart rates STEL as Underperform.
- STEL PE ratio analysis and historical PE chart
- STEL PS ratio (Price-to-Sales) history and trend
- STEL intrinsic value — DCF, Graham Number, EPV models
- STEL stock price prediction 2025 2026 2027 2028 2029 2030
- STEL fair value vs current price
- STEL insider transactions and insider buying
- Is STEL undervalued or overvalued?
- Stellar Bancorp, Inc. financial analysis — revenue, earnings, cash flow
- STEL Piotroski F-Score and Altman Z-Score
- STEL analyst price target and Smart Rating
Stellar Bancorp, Inc.
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STEL Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Stellar Bancorp, Inc. (STEL)
STEL is trading near its Graham intrinsic value of $42.19, suggesting the stock is reasonably priced at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Stellar Bancorp, Inc. (STEL) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, profit margin. Concerns around return on equity and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Stellar Bancorp, Inc. (STEL) Key Strengths (4)
Keeps $36 of every $100 in revenue after operating costs
Keeps $25 of every $100 in revenue as net profit
Trading at 1.08x book value, attractively priced
64.18% held by institutions, strong professional interest
Supporting Valuation Data
Stellar Bancorp, Inc. (STEL) Areas to Watch (5)
Revenue declining -3.10%, a shrinking business
Low profitability relative to shareholder equity
Premium valuation at 4.4x annual revenue
Modest earnings growth at 9.00%
Small-cap company with higher risk but more growth potential
Stellar Bancorp, Inc. (STEL) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 4 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Price/Book. Valuation metrics including Price/Book (1.08) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 36.40%, Profit Margin at 24.90%.
The Bear Case
The primary concerns are Revenue Growth, Return on Equity, Price/Sales. Some valuation metrics including Price/Sales (4.37) suggest expensive pricing. Growth concerns include Revenue Growth at -3.10%, EPS Growth at 9.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 6.28%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 6.28% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -3.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (Revenue Growth, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
STEL Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
STEL's Price-to-Sales ratio of 4.37x trades 27% below its historical average of 6.01x (37th percentile). The current valuation is 70% below its historical high of 14.37x set in Aug 2018, and 135% above its historical low of 1.86x in Apr 2024. Over the past 12 months, the PS ratio has expanded from ~2.2x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Stellar Bancorp, Inc. (STEL) · FINANCIAL SERVICES › BANKS - REGIONAL
The Big Picture
Stellar Bancorp, Inc. faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 413M with 310% decline year-over-year. Profit margins are strong at 24.9%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 628.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 24.9% and operating margin of 36.4% demonstrate strong pricing power and operational efficiency.
Revenue contracted 310% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Dividend sustainability with a current yield of 160.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor BANKS - REGIONAL industry trends, competitive moves, and regulatory changes that could impact Stellar Bancorp, Inc..
Bottom Line
Stellar Bancorp, Inc. faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Stellar Bancorp, Inc.(STEL)
NYSE
FINANCIAL SERVICES
BANKS - REGIONAL
USA
Stellar Bancorp, Inc. is the banking holding company that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals and individual clients. The company is headquartered in Houston, Texas.