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Stellar Bancorp, Inc. (STEL) Fundamental Analysis & AI Grade 2026

STEL NYSE National Commercial Banks TX CIK: 0001473844
Update Pending • Analysis: Apr 29, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
55% Confidence
N/A
C
55% Conf
Pending
Analysis scheduled

📊 STEL Key Takeaways

Revenue: $1.6M
Net Margin: 1,649.3%
Free Cash Flow: $16.2M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $0.53
AI Grade: C with 55% confidence
Stellar Bancorp, Inc. (STEL) receives a C fundamental grade with 55% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.6M, net profit margin of 1,649.3%, and return on equity (ROE) of 1.6%, Stellar Bancorp, Inc. demonstrates mixed fundamentals in the Finance sector. Below is our complete STEL stock analysis for 2026.

Is Stellar Bancorp, Inc. (STEL) a Good Investment?

Claude

Stellar Bancorp exhibits severely depressed profitability metrics (ROE 1.6%, ROA 0.2%) with dangerously inadequate interest coverage (0.3x), signaling fundamental operational stress. Data integrity issues surrounding revenue reporting further undermine confidence in disclosed financial position and quality of underlying operations.

Stellar Bancorp, Inc. Key Strengths (STEL)

Claude
  • + Positive free cash flow generation of 16.2M despite operational headwinds
  • + Substantial liquidity position with 549.6M cash reserves
  • + Conservative capital structure with leverage appropriate for banking sector

STEL Stock Risks: Stellar Bancorp, Inc. Investment Risks

Claude
  • ! Interest coverage ratio of 0.3x indicates severe difficulty servicing debt obligations and potential covenant violations
  • ! Extremely depressed return metrics (ROE 1.6%, ROA 0.2%) demonstrate poor asset and equity utilization typical of distressed institutions
  • ! Revenue reporting appears corrupted, creating uncertainty around data quality and masking true operational performance

Key Metrics to Watch

Claude
  • * Interest coverage trend and debt service capacity sustainability
  • * Return on assets and return on equity trajectory for improvement signals
  • * Non-performing loan ratios and asset quality deterioration indicators

Stellar Bancorp, Inc. (STEL) Financial Metrics & Key Ratios

Revenue
$1.6M
Net Income
$27.0M
EPS (Diluted)
$0.53
Free Cash Flow
$16.2M
Total Assets
$10.9B
Cash Position
$549.6M

💡 AI Analyst Insight

The 993.3% 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.

STEL Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 2,041.6%
Net Margin 1,649.3%
ROE 1.6%
ROA 0.2%
FCF Margin 993.3%

STEL vs Finance Sector: How Stellar Bancorp, Inc. Compares

How Stellar Bancorp, Inc. compares to Finance sector averages

Net Margin
STEL 1,649.3%
vs
Sector Avg 25.0%
STEL Sector
ROE
STEL 1.6%
vs
Sector Avg 12.0%
STEL Sector
Current Ratio
STEL 0.0x
vs
Sector Avg 1.2x
STEL Sector
Debt/Equity
STEL 0.0x
vs
Sector Avg 2.0x
STEL Sector

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.

Return on Equity
1.6%
Sector avg: 12%
Net Profit Margin
1,649.3%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 2x

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

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
84.7%
Interest Coverage
0.34x
Long-term Debt
N/A

STEL Revenue & Earnings Growth: 5-Year Financial Trend

STEL 5-year financial data: Year 2024: Revenue $6.4M, Net Income $51.4M, EPS $1.47. Year 2025: Revenue $6.4M, Net Income $130.5M, EPS $2.45.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
993.3%
Free cash flow / Revenue

STEL Quarterly Earnings & Performance

Quarterly financial performance data for Stellar Bancorp, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.6M $24.7M $0.46
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

Operating Cash Flow
$16.5M
Cash generated from operations
Stock Buybacks
$4.2M
Shares repurchased (TTM)
Capital Expenditures
$268.0K
Investment in assets
Dividends Paid
$7.8M
Returned to shareholders

STEL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Stellar Bancorp, Inc. (CIK: 0001473844)

📋 Recent SEC Filings

Date Form Document Action
May 27, 2026 8-K d128647d8k.htm View →
May 20, 2026 8-K d227903d8k.htm View →
May 20, 2026 8-K stel-20260520.htm View →
May 8, 2026 4 xslF345X06/wk-form4_1778272552.xml View →
Apr 28, 2026 10-Q stel-20260331.htm View →

Frequently Asked Questions about STEL

What is the AI rating for STEL?

Stellar Bancorp, Inc. (STEL) has an AI grade of C with 55% confidence, based on fundamental analysis of SEC EDGAR filings.

What are STEL's key strengths?

Claude: Positive free cash flow generation of 16.2M despite operational headwinds. Substantial liquidity position with 549.6M cash reserves.

What are the risks of investing in STEL?

Claude: Interest coverage ratio of 0.3x indicates severe difficulty servicing debt obligations and potential covenant violations. Extremely depressed return metrics (ROE 1.6%, ROA 0.2%) demonstrate poor asset and equity utilization typical of distressed institutions.

What is STEL's revenue and growth?

Stellar Bancorp, Inc. reported revenue of $1.6M.

Does STEL pay dividends?

Stellar Bancorp, Inc. pays dividends, with $7.8M 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 $0.53.

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 STEL's fundamental grade?

Based on our AI fundamental analysis in June 2026, Stellar Bancorp, Inc. has a C grade with 55% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is STEL stock overvalued or undervalued?

Valuation metrics for STEL: ROE of 1.6% (sector avg: 12%), net margin of 1,649.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is STEL's AI grade for 2026?

Our dual AI analysis gives Stellar Bancorp, Inc. a combined C grade 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 $16.5M, with capital expenditures of $268.0K. FCF margin is 993.3%.

How does STEL compare to other Finance stocks?

Vs Finance sector averages: Net margin 1,649.3% (avg: 25%), ROE 1.6% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 29, 2026 | Data as of: 2026-03-31 | Powered by Claude AI