📊 CCB Key Takeaways
Investment Thesis
Coastal Financial demonstrates solid operational performance with strong revenue growth of 38.6% YoY and healthy free cash flow generation at 57.3% FCF margin. However, net income growth stalled at 0% YoY and diluted EPS declined 6.1%, indicating profitability challenges that offset topline momentum. The concerning 0.7x interest coverage ratio and modest ROA of 1.0% suggest limited earnings quality for a bank of this asset size.
CCB Strengths
- Exceptional revenue growth of 38.6% YoY demonstrates strong market demand and loan/deposit expansion
- Robust free cash flow of $246.1M with 57.3% FCF margin provides significant capital deployment flexibility
- Strong liquidity position with $737M cash equivalents representing 15.7% of total assets
- Zero leverage (0.00x Debt/Equity) indicates conservative capital structure with minimal default risk
CCB Risks
- Net income growth flatlined at 0% YoY despite 38.6% revenue growth signals operational margin compression and cost control issues
- Dangerously low interest coverage ratio of 0.7x indicates insufficient earnings to cover interest obligations, critical concern for a bank
- Diluted EPS declined 6.1% YoY despite revenue expansion, suggesting share dilution or profitability deterioration at per-share level
- ROA of only 1.0% is significantly below banking peer averages, indicating poor asset productivity
Key Metrics to Watch
- Net interest margin (NIM) trend and deposit cost dynamics to assess if margin compression is reversing
- Net income growth trajectory in next quarters to determine if profitability inflection occurs
- Interest coverage ratio improvement as critical metric given current distressed level below 1.0x
- Return on Assets improvement path toward industry benchmarks of 1.2-1.5% for healthy regional banks
CCB Financial Metrics
💡 AI Analyst Insight
The 57.3% 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 Profitability Ratios
CCB vs Finance Sector
How COASTAL FINANCIAL CORP compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CCB Balance Sheet & Liquidity
CCB 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 Growth Metrics (YoY)
CCB Capital Allocation
CCB SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CCB's key strengths?
Exceptional revenue growth of 38.6% YoY demonstrates strong market demand and loan/deposit expansion. Robust free cash flow of $246.1M with 57.3% FCF margin provides significant capital deployment flexibility.
What are the risks of investing in CCB?
Net income growth flatlined at 0% YoY despite 38.6% revenue growth signals operational margin compression and cost control issues. Dangerously low interest coverage ratio of 0.7x indicates insufficient earnings to cover interest obligations, critical concern for a bank.
What is CCB's revenue and growth?
COASTAL FINANCIAL CORP reported revenue of $429.6M.
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 $3.06.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.