📊 CCB Key Takeaways
Is Coastal Financial Corp. (CCB) a Good Investment?
Coastal Financial demonstrates strong revenue growth (+38.6% YoY) and robust free cash flow ($74.1M), but fundamental profitability metrics reveal severe structural issues. The interest coverage ratio of 0.5x indicates operating income cannot cover interest expenses, while ROE of 2.4% and ROA of 0.2% represent critically weak capital efficiency, suggesting deteriorating asset quality or rising funding costs that outweigh growth.
Coastal Financial shows strong top-line momentum, with revenue up 38.6% year over year, and it remains solidly profitable with positive operating income, a 10.9% net margin, and ROA of 1.0%. However, earnings quality looks mixed because net income was flat, diluted EPS declined, and interest coverage is weak, suggesting that revenue growth is not yet translating into stronger per-share profitability. The balance sheet appears adequately capitalized with nearly $491 million in equity and substantial cash, but margin durability and earnings conversion need to improve for a more bullish view.
Coastal Financial Corp. Key Strengths (CCB)
- Strong revenue growth of 38.6% YoY demonstrates market expansion and business activity
- Robust free cash flow generation of $74.1M with 66.4% FCF margin shows cash-generating capacity
- Conservative balance sheet with zero long-term debt and $1.5B cash position provides financial flexibility
- Strong revenue growth of 38.6% year over year
- Solid profitability with $46.99M net income and positive 9.6% ROE
- Strong reported cash generation with $246.15M in free cash flow and $736.97M in cash
CCB Stock Risks: Coastal Financial Corp. Investment Risks
- Interest coverage ratio of 0.5x indicates operating income cannot cover interest expenses - critical structural red flag
- Critically weak ROE (2.4%) and ROA (0.2%) demonstrate poor capital efficiency and deployment
- Net income growth (3.9%) significantly lags revenue growth (38.6%), with EPS declining 6.1% YoY despite positive earnings growth - signals profitability quality and dilution concerns
- Net income was flat despite strong revenue growth, indicating margin pressure or higher costs
- Diluted EPS fell 6.1% year over year, weakening per-share earnings momentum
- Interest coverage of 0.7x is weak and may indicate pressure from funding costs or earnings volatility
Key Metrics to Watch
- Interest coverage ratio trend and drivers of rising interest expense relative to operating income
- Return on equity and return on assets - must improve to justify banking franchise value
- Net margin sustainability and whether earnings can catch up to revenue growth momentum
- Net interest margin and operating margin trend
- EPS growth relative to revenue growth
Coastal Financial Corp. (CCB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 66.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CCB Profit Margin, ROE & Profitability Analysis
CCB vs Finance Sector: How Coastal Financial Corp. Compares
How Coastal Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Coastal Financial Corp. Stock Overvalued? CCB Valuation Analysis 2026
Based on fundamental analysis, Coastal Financial Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Coastal Financial Corp. Balance Sheet: CCB Debt, Cash & Liquidity
CCB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Coastal Financial Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.27 reflects profitable operations.
CCB Revenue Growth, EPS Growth & YoY Performance
Coastal Financial Corp. Dividends, Buybacks & Capital Allocation
CCB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Coastal Financial Corp. (CIK: 0001437958)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CCB
What is the AI rating for CCB?
Coastal Financial Corp. (CCB) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CCB's key strengths?
Claude: Strong revenue growth of 38.6% YoY demonstrates market expansion and business activity. Robust free cash flow generation of $74.1M with 66.4% FCF margin shows cash-generating capacity. ChatGPT: Strong revenue growth of 38.6% year over year. Solid profitability with $46.99M net income and positive 9.6% ROE.
What are the risks of investing in CCB?
Claude: Interest coverage ratio of 0.5x indicates operating income cannot cover interest expenses - critical structural red flag. Critically weak ROE (2.4%) and ROA (0.2%) demonstrate poor capital efficiency and deployment. ChatGPT: Net income was flat despite strong revenue growth, indicating margin pressure or higher costs. Diluted EPS fell 6.1% year over year, weakening per-share earnings momentum.
What is CCB's revenue and growth?
Coastal Financial Corp. reported revenue of $111.7M.
Does CCB pay dividends?
Coastal Financial Corp. does not currently pay dividends.
Where can I find CCB SEC filings?
Official SEC filings for Coastal Financial Corp. (CIK: 0001437958) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CCB's EPS?
Coastal Financial Corp. has a diluted EPS of $0.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CCB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Coastal Financial Corp. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CCB stock overvalued or undervalued?
Valuation metrics for CCB: ROE of 2.4% (sector avg: 12%), net margin of 10.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is CCB's AI grade for 2026?
Our dual AI analysis gives Coastal Financial Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CCB's free cash flow?
Coastal Financial Corp.'s operating cash flow is $76.0M, with capital expenditures of $1.8M. FCF margin is 66.4%.
How does CCB compare to other Finance stocks?
Vs Finance sector averages: Net margin 10.8% (avg: 25%), ROE 2.4% (avg: 12%), current ratio N/A (avg: 1.2).