Stellar Bancorp, Inc. (STEL)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Stellar Bancorp, Inc. (STEL) trades at $39.32 with AI Score 77/100 (Grade A). Stellar Bancorp, Inc. is a bank holding company providing commercial banking services to small and medium-sized businesses, professionals, and individual customers. Market cap: $2.00B, Sector: Financial services.
Price live · AI analysis from May 7, 2026Analyst Coverage for STEL: STEL does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates STEL against Financial Services peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
STEL: 5/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Stellar Bancorp, Inc. (STEL) Financial Services Profile
Stellar Bancorp, Inc., founded in 2007, provides commercial banking services to small and medium-sized businesses and individuals, primarily in the Southeast US. With a market capitalization of $2.00B and a focus on traditional banking services alongside digital offerings, Stellar Bancorp competes in the regional banking sector.
What Is the Investment Thesis for STEL?
Stellar Bancorp, Inc. presents a compelling investment case based on its strategic focus on the Southeast region, a market experiencing steady economic growth. With a P/E ratio of 18.3 and a profit margin of 17.8%, the company demonstrates solid profitability. The dividend yield of 1.54% offers a modest income stream for investors. Growth catalysts include expansion within existing markets and potential acquisitions of smaller regional banks. However, investors should be aware of potential risks, including interest rate sensitivity and increasing competition from larger national banks and fintech companies. Monitoring loan portfolio performance and deposit growth will be crucial in assessing the company's future performance.
Based on FMP financials and quantitative analysis
STEL Key Highlights
- Market capitalization of $2.00B, reflecting substantial investor confidence in the company's market position.
- P/E ratio of 18.3, indicating a reasonable valuation relative to earnings.
- Profit margin of 17.8%, showcasing efficient operations and profitability.
- Gross margin of 69.9%, highlighting the company's ability to manage costs effectively.
- Dividend yield of 1.54%, providing a steady income stream for investors.
Who Are STEL's Competitors?
STEL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HBAN Huntington Bancshares Incorporated | $17.89 | +0.17% | $36.27B | 68 |
| KEY KeyCorp | $23.35 | +1.43% | $25.20B | 95 |
| FCNCA First Citizens BancShares, Inc. | $2117.43 | +1.65% | $24.53B | 73 |
| TCBI Texas Capital Bancshares, Inc. | $105.25 | +1.25% | $4.60B | 93 |
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are STEL's Key Strengths?
- Strong presence in the growing Texas market.
- Diversified loan portfolio.
- Experienced management team.
- Solid profitability metrics.
What Are STEL's Weaknesses?
- Limited geographic diversification.
- Reliance on traditional banking services.
- Smaller size compared to national banks.
- Sensitivity to interest rate fluctuations.
What Could Drive STEL Stock Higher?
- Expansion of digital banking services to attract younger customers.
- Strategic acquisitions of smaller regional banks to increase market share.
- Potential interest rate hikes by the Federal Reserve, which could increase net interest margins.
- Growth in the Texas economy, driving demand for banking services.
What Are the Key Risks for STEL?
- Financial-distress signal — its Altman Z-Score of -0.46 sits in the distress zone (elevated bankruptcy risk).
- Increased competition from larger national banks and fintech companies.
- Economic downturn in the Texas market, leading to loan defaults.
- Sensitivity to interest rate fluctuations, which could impact profitability.
- Regulatory changes that could increase compliance costs.
What Are the Growth Opportunities for STEL?
- Expansion within existing markets: Stellar Bancorp can grow by increasing its market share in its current locations, such as Houston and Dallas. This can be achieved through targeted marketing campaigns, enhanced customer service, and the introduction of new products and services. The market for banking services in Texas is estimated to be worth billions of dollars, providing ample opportunity for growth. Timeline: Ongoing.
- Strategic acquisitions: Stellar Bancorp can acquire smaller regional banks to expand its geographic footprint and increase its asset base. This strategy can provide access to new markets and customers, as well as economies of scale. The regional banking sector is ripe for consolidation, with many smaller banks struggling to compete with larger institutions. Timeline: Ongoing.
- Increased focus on digital banking: Stellar Bancorp can invest in its digital banking platform to attract and retain customers. This includes offering mobile banking apps, online account opening, and other digital services. The demand for digital banking is growing rapidly, particularly among younger customers. Timeline: Ongoing.
- Expansion of commercial lending: Stellar Bancorp can grow its commercial lending business by targeting small and medium-sized businesses in its target markets. This includes offering a range of loan products, such as commercial real estate loans, equipment financing, and working capital loans. The market for commercial lending is large and growing, driven by the growth of the small business sector. Timeline: Ongoing.
- Wealth management services: Stellar Bancorp can expand its wealth management services to cater to high-net-worth individuals and families. This includes offering investment management, financial planning, and trust services. The market for wealth management services is growing rapidly, driven by the increasing wealth of the population. Timeline: Ongoing.
What Opportunities Does STEL Have?
- Expansion into new markets within the Southeast region.
- Increased adoption of digital banking services.
- Strategic acquisitions of smaller banks.
- Growth in commercial lending.
What Threats Does STEL Face?
- Increased competition from larger national banks.
- Disruption from fintech companies.
- Economic downturn in the Texas market.
- Regulatory changes.
What Are STEL's Competitive Advantages?
- Strong local presence in Texas markets.
- Established relationships with local businesses.
- Personalized customer service.
- Deep understanding of local market dynamics.
What Does STEL Do?
Stellar Bancorp, Inc. was established in 2007 and is headquartered in Houston, Texas. The company operates as a bank holding company, delivering a comprehensive suite of commercial banking services tailored to small and medium-sized businesses, professionals, and individual customers. Stellar Bancorp offers a variety of deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and certificates of deposit. Its loan portfolio encompasses commercial and industrial loans, commercial real estate loans (including multi-family residential loans), commercial real estate construction and land development loans, residential real estate loans (such as 1-4 family residential mortgage loans), residential construction loans, and consumer and other loans. Beyond traditional banking services, Stellar Bancorp provides automated teller machine services, drive-through services, and depository facilities. It also offers modern conveniences such as mobile banking, telephone, mail, and internet banking services. Additional services include safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. Stellar Bancorp's operational footprint is concentrated in the Southeast region, with locations in Houston, The Woodlands, Sugar Land, Beaumont, Port Arthur, and Dallas. The company's focus on relationship-based banking and community involvement has helped it establish a strong presence in its target markets.
What Products and Services Does STEL Offer?
- Offers checking, savings, and money market accounts.
- Provides commercial and industrial loans.
- Offers commercial and residential real estate loans.
- Provides residential construction loans.
- Offers consumer and other loans.
- Provides mobile and internet banking services.
- Offers cash management and wire transfer services.
How Does STEL Make Money?
- Generates revenue from interest income on loans.
- Earns fees from deposit accounts and other services.
- Manages risk through diversification of loan portfolio.
- Expands market presence through strategic branch locations.
What Industry Does STEL Operate In?
Stellar Bancorp operates within the competitive regional banking sector. This sector is characterized by both traditional brick-and-mortar institutions and increasing disruption from fintech companies. Key trends include rising interest rates, which can impact net interest margins, and increasing demand for digital banking services. The regional banking market is fragmented, with numerous players vying for market share. Stellar Bancorp's focus on small and medium-sized businesses positions it to capitalize on the demand for personalized banking services in its target markets.
Who Are STEL's Key Customers?
- Small and medium-sized businesses.
- Professionals (doctors, lawyers, etc.).
- Individual customers.
- Commercial real estate developers.
Company Profile
Stellar Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Houston, US. The company is led by CEO Robert R. Franklin Jr.. STEL has traded publicly since 2017.
How Stellar Bancorp, Inc. Is Valued
Stellar Bancorp, Inc. carries a market capitalization of $2.00B, placing it in the mid-cap category. Relative to its peer group, STEL's quantitative score of 77/100 is roughly in line with the peer average of 80/100.
ROE 6%Key Financial Metrics
Return on equity for Stellar Bancorp, Inc. stands at 6.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. STEL trades at a trailing price-to-earnings ratio of 18.27, roughly in line with the Financial Services sector average of ~18x. Its free cash flow yield is 5.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.23 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.2%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Stellar Bancorp, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.46 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Stellar Bancorp, Inc. revenue of about $445.9M for fiscal 2026, with EPS near $2.22.
STEL Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
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Bear Case
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AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
STEL Latest News
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Earnings Scheduled For October 24, 2025
benzinga · Oct 24, 2025
STEL Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STEL.
Price Targets
Wall Street price target analysis for STEL.
STEL MoonshotScore
What does this score mean?
The MoonshotScore rates STEL's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest Stellar Bancorp, Inc. Analysis
Leadership: Robert R. Franklin Jr.
CEO
Robert R. Franklin Jr. serves as the CEO of Stellar Bancorp, Inc. His career spans several decades in the banking industry, with a focus on commercial lending and strategic growth. Prior to joining Stellar Bancorp, he held leadership positions at various regional banks, where he oversaw significant increases in loan volume and market share. Franklin holds an MBA from a top-tier business school and is actively involved in community development initiatives in the Houston area. His expertise lies in fostering strong client relationships and driving sustainable growth.
Track Record: Under Robert R. Franklin Jr.'s leadership, Stellar Bancorp has experienced consistent growth in assets and profitability. He has successfully navigated the company through challenging economic conditions and has overseen the expansion of its digital banking platform. Key milestones include the successful integration of acquired banks and the implementation of new risk management strategies. His focus on operational efficiency has contributed to improved financial performance.
Common Questions About STEL (Financial Services)
What does Stellar Bancorp, Inc. do?
Stellar Bancorp, Inc. operates as a bank holding company, providing a range of commercial banking services to small and medium-sized businesses, professionals, and individual customers. The company offers deposit products such as checking, savings, and money market accounts, as well as loan products including commercial real estate, industrial, and consumer loans. Stellar Bancorp also provides digital banking services, cash management, and other financial services to its customers, primarily in the Southeast region of the United States.
What do analysts say about STEL stock?
Analyst coverage of Stellar Bancorp, Inc. (STEL) generally focuses on its growth potential in the Texas market and its ability to maintain profitability in a changing interest rate environment. Key valuation metrics include the P/E ratio and price-to-book ratio, which are often compared to peers in the regional banking sector. Analyst consensus typically reflects expectations for steady earnings growth, driven by loan growth and efficient cost management. However, analysts also note potential risks, such as increased competition and regulatory changes. No buy or sell recommendations are made here.
What are the main risks for STEL?
Stellar Bancorp, Inc. faces several key risks, including interest rate risk, credit risk, and competition risk. Interest rate risk arises from the potential for changes in interest rates to negatively impact net interest margins. Credit risk stems from the possibility of loan defaults, particularly during economic downturns. Competition risk comes from larger national banks and fintech companies that may offer more competitive products and services. Additionally, regulatory changes and cybersecurity threats pose ongoing challenges for the company.
What are the key factors to evaluate for STEL?
Stellar Bancorp, Inc. (STEL) holds an AI score of 77/100 (high). P/E: 18.3x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does STEL data refresh on this page?
STEL prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven STEL's recent stock price performance?
Stellar Bancorp, Inc. (STEL) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong presence in the growing Texas market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider STEL overvalued or undervalued right now?
Stellar Bancorp, Inc. (STEL) trades at 18.3x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying STEL?
Before investing in Stellar Bancorp, Inc. (STEL), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Financial data is as of the latest available reporting period.