* Note: Prices are in Million (M) USD.
Description:
Stellar Bancorp, Inc. is the banking holding company that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals and individual clients. The company is headquartered in Houston, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $911 M
Debt : $70 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Financials
Industry: Banks - Regional
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 14.77
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $85 M
Average Revenue: $279 M
Revenue Converted To Free Cash FLow(%): 30%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 43.75%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $625 M
Revenue 4 Years Ago (2020-12-31): $250 M
Last 5 Years Average Revenue Growth: 30%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $54 M
Share Count 5 Years Ago (2020-12-31): $29 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.93
Trailing 12-Month Earnings Per Share (EPS): $1.90
Average Earnings Per Share (EPS): $1.92
Dividend Per Share (DPS): $1
Payout Ratio: 29%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $28
52-Week Low: $24
Threshold Price (15% Above 52-Week Low): $27
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,616 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Stellar Bancorp, Inc. (STEL) stock.
Last 8 Years Avg PE (Limited to last 8 years of EPS data) 16, Fair Value PE 15, Industry Based PE is 13 and Growth based PE is 15. Based on these all values average assigned is 14.75.
Value-Trades has assined P/E value 14.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.92.
The fair value of Stellar Bancorp, Inc. (STEL) stock should be (14.75 x $1.92) = $28.32
