Stellar Bancorp Inc. Common Stock (STEL)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Stellar Bancorp as a small commercial bank holding company serving small and midsize businesses, professionals, and individuals, with 1,053 employees. In the first quarter of 2026, it reported revenue of $111.0 million and net income of $27.0 million, a 24.28% net margin. That is a profitable enterprise, but the returns are not special: FairStock shows ROE of 6.41%, ROCE of 0.99%, and a Piotroski F-Score of 4 out of 9. The balance-sheet risk measure Altman Z-Score is 0.21, though for a bank that calculation is less informative than for an industrial. I see no evidence here of a wide moat; commercial banking is competitive, and the company’s advantage, if any, comes from local relationships and switching costs. At the 2026-06-30 close of $39.32, FairStock calculates P/E of 19.09, P/B of 1.20, and a Graham Number of $38.97, leaving a margin of safety of -0.90%. The PEG ratio is 2.08, and the FairStock score is 43/100. Free cash flow over the trailing 12 months was $115.3 million, a 6.1% FCF yield, and the dividend yield is 1.53%. Growth appears modest, and the Lynch category is none because there are only 0 years of filed results, needing three. The stock trades near the upper end of its 52-week range of $28.50 to $40.21. I would want better returns and a clearer discount before calling this a compelling Graham-style bargain.

In plain English: Stellar Bancorp is a bank holding company that provides commercial banking services to small and medium-sized businesses and individuals. In the latest reported quarter, the first quarter of 2026, it earned $27.0 million on $111.0 million of revenue, a 24.28% profit margin, so it is profitable but not a fast grower. At the June 30, 2026 close of $39.32, the price looks roughly fair versus its earnings and accounting value, neither clearly cheap nor clearly expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-06-30 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer