A Business at a Glance
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Stellar Bancorp, Inc.
STEL
$2.0B
Mkt Cap
Stellar Bancorp, Inc. (STEL) has a current P/E ratio of 19.0, compared to its historical median P/E of 13.7. The stock is currently considered Expensive based on its historical valuation range.
Stellar Bancorp, Inc. (STEL) has a 5-year average return on invested capital (ROIC) of 7.5%. This is below average and may indicate limited pricing power.
Stellar Bancorp, Inc. (STEL) has a market capitalization of $1.9B. It is classified as a small-cap stock.
Yes, Stellar Bancorp, Inc. (STEL) pays a dividend with a trailing twelve-month yield of 1.55%. The company also returns capital through share buybacks, with a buyback yield of 2.02%.
Based on historical P/E analysis, Stellar Bancorp, Inc. (STEL) appears expensive. The current P/E of 19.0 is 39% above its historical median of 13.7. The estimated fair value CAGR (P/E method) is 4.8%.
Stellar Bancorp, Inc. (STEL) operates in the National Commercial Banks industry, within the Financials sector.
Stellar Bancorp, Inc. (STEL) reported annual revenue of $596 million in its most recent fiscal year, based on SEC EDGAR filings.
The disclosures set forth in this item are qualified by “Item 1A. Risk Factors,” the section captioned “Cautionary Notice Regarding Forward-Looking Statements” in the forepart of this report, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations— Cautionary Notice Regarding Forward-Looking Statements” and other cautionary statements set forth elsewhere in this Annual Report on Form 10-K. The Company is a Texas corporation and registered bank holding company headquartered in Houston, Texas. On January 27, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Prosperity Bancshares, Inc., a Texas corporation (“Prosperity”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, the Company will merge with and into Prosperity (the “Merger”), with Prosperity continuing as the surviving corporation in the Merger.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 430M | 596M | 625M | 615M | 343M | 262M |
| Net Income | 105M | 103M | 115M | 130M | 51M | 82M |
| EPS | $2.06 | $1.99 | $2.15 | $2.45 | $1.47 | $1.41 |
| Free Cash Flow | 115M | 93M | 128M | 161M | 105M | 104M |
| ROIC | 6.3% | 6.3% | 7.4% | 9.0% | 4.7% | 10.4% |
| Gross Margin | - | 51.1% | 68.3% | 73.4% | 77.3% | 89.5% |
| Debt/Equity | 0.00 | 5.48 | 5.78 | 6.00 | 6.88 | 7.70 |
| Dividends/Share | $0.59 | $0.57 | $0.53 | $0.52 | $0.43 | $0.17 |
| Operating Income | 11M | 11M | 11M | 11M | 7.0M | 100M |
| Operating Margin | 2.5% | 1.8% | 1.8% | 1.8% | 2.0% | 38.2% |
| ROE | 6.3% | 6.3% | 7.4% | 9.0% | 4.7% | 10.4% |
| Shares Outstanding | 51M | 52M | 53M | 53M | 35M | 58M |
| Metric | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||||
| Revenue | 120M | 126M | 131M | 150M | 172M | 250M | 262M | 343M | 615M | 625M | 596M | 430M |
| Gross Margin | 87.9% | 89.7% | 93.0% | 91.4% | 88.5% | 73.7% | 89.5% | 77.3% | 73.4% | 68.3% | 51.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 71M | 74M | 78M | 82M | 90M | 80M | 90M | 108M | 157M | 165M | 169M | 171M |
| EBIT | 1.6M | 2.6M | 1.8M | 59M | 2.7M | 3.1M | 100M | 7.0M | 11M | 11M | 11M | 11M |
| Op. Margin | 1.3% | 2.1% | 1.4% | 39.1% | 1.6% | 1.3% | 38.2% | 2.0% | 1.8% | 1.8% | 1.8% | 2.5% |
| Net Income | 24M | 27M | 28M | 47M | 51M | 46M | 82M | 51M | 130M | 115M | 103M | 105M |
| Net Margin | 20.0% | 21.6% | 21.1% | 31.5% | 29.4% | 18.2% | 31.2% | 15.0% | 21.2% | 18.4% | 17.3% | 24.5% |
| Non-Recurring | 898K | 2.0M | 1.9M | 660K | 652K | 4.8M | 3.1M | 5.0M | 390K | 769K | -302K | -302K |
| Returns on Capital | ||||||||||||
| ROIC | N/A | 7.2% | 6.4% | 9.8% | 8.4% | 6.2% | 10.4% | 4.7% | 9.0% | 7.4% | 6.3% | 6.3% |
| ROE | N/A | 7.8% | 6.9% | 10.1% | 8.4% | 6.2% | 10.4% | 4.7% | 9.0% | 7.4% | 6.3% | 6.3% |
| ROA | N/A | 1.8% | 0.9% | 1.5% | 1.5% | 1.2% | 1.5% | 0.6% | 1.2% | 1.1% | 0.9% | 1.0% |
| Cash Flow | ||||||||||||
| Op. Cash Flow | 33M | 36M | 36M | 49M | 56M | 61M | 107M | 109M | 168M | 133M | 97M | 119M |
| Free Cash Flow | 30M | 34M | 35M | 48M | 54M | 54M | 104M | 105M | 161M | 128M | 93M | 115M |
| Owner Earnings | 28M | 32M | 31M | 43M | 50M | 50M | 83M | 77M | 130M | 87M | 46M | 69M |
| CapEx | 2.8M | 1.9M | 992K | 1.3M | 2.5M | 7.2M | 2.9M | 3.8M | 6.9M | 4.7M | 4.4M | 3.9M |
| Maint. CapEx | 4.9M | 4.4M | 4.4M | 4.3M | 4.1M | 7.6M | 20M | 23M | 29M | 35M | 42M | 41M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 4.9M | 4.4M | 4.4M | 4.3M | 4.1M | 7.6M | 20M | 23M | 29M | 35M | 42M | 41M |
| CapEx/OCF | N/A | N/A | 5.6% | 2.6% | 4.4% | 33.6% | 2.7% | 3.5% | 4.1% | 3.5% | 4.5% | 3.3% |
| Capital Allocation | ||||||||||||
| Dividends Paid | 4.5M | 4.4M | 4.4M | 5.0M | 8.8M | 8.2M | 9.7M | 15M | 28M | 28M | 29M | 30M |
| Dividend Yield | N/A | N/A | 0.4% | 0.4% | 0.7% | 0.8% | 0.6% | 1.6% | 2.2% | 2.1% | 2.0% | 1.5% |
| Share Buybacks | 4.4M | 11M | 0 | 0 | 3K | 19M | 5.7M | 24M | 0 | 2.8M | 73M | 39M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 0.0% | 1.5% | 0.7% | 2.4% | N/A | 0.2% | 4.6% | 2.0% |
| Stock-Based Comp | 12K | 43K | 329K | 1.6M | 2.4M | 3.4M | 4.0M | 9.0M | 9.9M | 11M | 9.2M | 9.1M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||||||
| Net Debt | -404M | -560M | -522M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -550M |
| Cash & Equiv. | 435M | 382M | 326M | 382M | 346M | 423M | 758M | 372M | 399M | 911M | 419M | 550M |
| Long-Term Debt | 31M | 28M | 28M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | N/A | 0.08 | 0.06 | 5.72 | 4.15 | 4.49 | 7.70 | 6.88 | 6.00 | 5.78 | 5.48 | 0.00 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0 |
| Equity | N/A | 358M | 446M | 488M | 710M | 759M | 816M | 1.4B | 1.5B | 1.6B | 1.7B | 1.7B |
| Total Assets | N/A | 3.0B | 3.1B | 3.3B | 3.5B | 3.9B | 7.1B | 10.9B | 10.6B | 10.9B | 10.8B | 10.9B |
| Total Liabilities | N/A | 2.6B | 2.6B | 2.8B | 2.9B | 3.4B | 6.3B | 9.5B | 9.1B | 9.3B | 9.1B | 9.2B |
| Intangibles | N/A | 7.8M | 6.8M | 5.8M | 4.9M | 4.2M | 15M | 144M | 117M | 93M | 71M | 66M |
| Retained Earnings | N/A | 95M | 118M | 161M | 201M | 214M | 267M | 303M | 406M | 493M | 566M | 585M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | ||||||||||||
| EPS | 0.53 | 0.61 | 0.61 | 0.95 | 1.01 | 0.78 | 1.41 | 1.47 | 2.45 | 2.15 | 1.99 | 2.06 |
| Owner EPS | 0.61 | 0.71 | 0.68 | 0.87 | 0.99 | 0.86 | 1.44 | 2.21 | 2.43 | 1.62 | 0.89 | 1.35 |
| Book Value | N/A | 8.02 | 9.87 | 9.74 | 14.19 | 13.00 | 14.12 | 39.53 | 28.56 | 30.06 | 32.28 | 32.76 |
| Cash Flow/Share | 0.72 | 0.81 | 0.79 | 0.99 | 1.12 | 1.05 | 1.86 | 3.12 | 3.16 | 2.48 | 1.88 | 2.88 |
| Dividends/Share | 0.10 | 0.10 | 0.10 | 0.10 | 0.20 | 0.14 | 0.17 | 0.43 | 0.52 | 0.53 | 0.57 | 0.59 |
| Shares Out. | 45.5M | 44.6M | 45.2M | 50.0M | 50.0M | 58.4M | 57.8M | 35.0M | 53.3M | 53.5M | 51.7M | 50.9M |
| Valuation | ||||||||||||
| P/E Ratio | N/A | N/A | 21.4 | 13.7 | 13.6 | 22.4 | 9.5 | 18.8 | 11.2 | 13.0 | 15.7 | 18.4 |
| P/FCF | N/A | N/A | 34.2 | 27.0 | 25.5 | 25.7 | 14.8 | 9.2 | 9.0 | 11.6 | 17.4 | 16.7 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 129.6 |
| Price/Book | N/A | N/A | 1.3 | 1.3 | 1.3 | 1.1 | 0.9 | 0.7 | 1.0 | 0.9 | 1.0 | 1.2 |
| Price/Sales | N/A | N/A | 4.7 | 5.1 | 4.3 | 3.2 | 3.2 | 3.1 | 2.7 | 3.1 | 3.5 | 4.5 |
| FCF Yield | N/A | N/A | 5.9% | 7.4% | 7.8% | 9.1% | 13.5% | 10.9% | 11.1% | 8.6% | 5.7% | 6.0% |
| Market Cap | 0 | N/A | 591M | 649M | 685M | 590M | 775M | 969M | 1.5B | 1.5B | 1.6B | 1.9B |
| Avg. Price | 0.00 | N/A | 25.13 | 28.08 | 26.33 | 18.57 | 25.89 | 27.83 | 23.33 | 24.66 | 28.66 | 37.89 |
| Year-End Price | 0.00 | N/A | 26.15 | 25.95 | 27.37 | 23.73 | 26.79 | 27.69 | 27.38 | 27.85 | 31.17 | 37.89 |
Stellar Bancorp, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Stellar Bancorp, Inc. trades at 19.0x trailing earnings, compared to its 15-year median P/E of 13.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 20.8x vs a median of 17.4x. The company's 5-year average ROIC is 7.5% with a gross margin of 71.9%. Total shareholder yield (dividends + buybacks) is 3.6%. At current prices, the estimated annualized return to fair value is +6.8%.
Stellar Bancorp, Inc. (STEL) has a net profit margin of 17.3%. This is a healthy margin.
Stellar Bancorp, Inc. (STEL) generated $93 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Stellar Bancorp, Inc. (STEL) has a debt-to-equity ratio of 5.48. This indicates higher leverage, which may increase financial risk.
Stellar Bancorp, Inc. (STEL) reported earnings per share (EPS) of $1.99 in its most recent fiscal year.
Stellar Bancorp, Inc. (STEL) has a return on equity (ROE) of 6.3%. This indicates moderate shareholder returns.
Stellar Bancorp, Inc. (STEL) has a 5-year average gross margin of 71.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 11 years of financial data for Stellar Bancorp, Inc. (STEL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Stellar Bancorp, Inc. (STEL) has a book value per share of $32.28, based on its most recent annual SEC filing.