📊 STEL Key Takeaways
Is Stellar Bancorp, Inc. (STEL) a Good Investment?
Stellar Bancorp exhibits severe operational weakness with dangerously low interest coverage (1.3x), indicating the company barely covers interest obligations with operating income. Poor profitability returns (ROE 6.2%, ROA 1.0%) significantly underperform banking sector norms, combined with critical data quality concerns that make fundamental assessment unreliable.
Why Buy Stellar Bancorp, Inc. Stock? STEL Key Strengths
- Minimal leverage with 0.00x Debt/Equity ratio and low absolute debt burden
- Positive cash flow generation with $92.6M free cash flow despite operational challenges
- Stable net income at $102.9M with modest balance sheet of $10.8B in assets
STEL Stock Risks: Stellar Bancorp, Inc. Investment Risks
- Interest coverage ratio of 1.3x is critically low—operating income barely exceeds interest obligations with minimal safety margin
- Weak returns on equity (6.2%) and assets (1.0%) indicate poor operational efficiency and capital allocation relative to industry benchmarks
- Severe data integrity issues (98.9% revenue collapse, impossible margin ratios) suggest incomplete or corrupted financial reporting that undermines analysis reliability
Key Metrics to Watch
- Interest Coverage Ratio—must improve above 2.5x to indicate reduced financial stress
- Return on Equity and Return on Assets—need expansion toward 8%+ and 1.5%+ respectively to demonstrate operational improvement
- Net Interest Margin and core deposit trends—critical for evaluating banking fundamentals beyond reported data issues
Stellar Bancorp, Inc. (STEL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 1,474.1% 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.
STEL Profit Margin, ROE & Profitability Analysis
STEL vs Finance Sector: How Stellar Bancorp, Inc. Compares
How Stellar Bancorp, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stellar Bancorp, Inc. Stock Overvalued? STEL Valuation Analysis 2026
Based on fundamental analysis, Stellar Bancorp, Inc. 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.
Stellar Bancorp, Inc. Balance Sheet: STEL Debt, Cash & Liquidity
STEL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stellar Bancorp, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.45 reflects profitable operations.
STEL Revenue Growth, EPS Growth & YoY Performance
STEL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.5M | $25.7M | $0.50 |
| Q2 2025 | $1.6M | $26.4M | $0.51 |
| Q1 2025 | $1.6M | $24.7M | $0.46 |
| Q3 2024 | $1.6M | $30.9M | $0.58 |
| Q2 2024 | $1.6M | $29.8M | $0.56 |
| Q1 2024 | $1.3M | $26.1M | $0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stellar Bancorp, Inc. Dividends, Buybacks & Capital Allocation
STEL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stellar Bancorp, Inc. (CIK: 0001473844)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STEL
What is the AI rating for STEL?
Stellar Bancorp, Inc. (STEL) has an AI rating of SELL with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STEL's key strengths?
Claude: Minimal leverage with 0.00x Debt/Equity ratio and low absolute debt burden. Positive cash flow generation with $92.6M free cash flow despite operational challenges.
What are the risks of investing in STEL?
Claude: Interest coverage ratio of 1.3x is critically low—operating income barely exceeds interest obligations with minimal safety margin. Weak returns on equity (6.2%) and assets (1.0%) indicate poor operational efficiency and capital allocation relative to industry benchmarks.
What is STEL's revenue and growth?
Stellar Bancorp, Inc. reported revenue of $6.3M.
Does STEL pay dividends?
Stellar Bancorp, Inc. pays dividends, with $29.3M distributed to shareholders in the trailing twelve months.
Where can I find STEL SEC filings?
Official SEC filings for Stellar Bancorp, Inc. (CIK: 0001473844) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STEL's EPS?
Stellar Bancorp, Inc. has a diluted EPS of $1.99.
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 rating reflects both perspectives for balanced insights.
Is STEL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stellar Bancorp, Inc. has a SELL rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STEL stock overvalued or undervalued?
Valuation metrics for STEL: ROE of 6.2% (sector avg: 12%), net margin of 1,637.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy STEL stock in 2026?
Our dual AI analysis gives Stellar Bancorp, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STEL's free cash flow?
Stellar Bancorp, Inc.'s operating cash flow is $97.0M, with capital expenditures of $4.4M. FCF margin is 1,474.1%.
How does STEL compare to other Finance stocks?
Vs Finance sector averages: Net margin 1,637.6% (avg: 25%), ROE 6.2% (avg: 12%), current ratio N/A (avg: 1.2).