Coastal Financial (CCB) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: N/A
• Average Volume (3M): 152.92K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.08
• Revenue Growth: 30.90%
• EPS Growth: -0.62%
• Country: US
• Employees: 488
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 3.25
• Shares Outstanding: 15,007,465
• 10 Day Avg. Volume: 143,922
• 30 Day Avg. Volume: 152,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.18
• Price to Cash Flow (P/CF): 5.10
• P/FCF Ratio: 3.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $109.50
• Price Target Upside: 37.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Coastal Financial's strong revenue growth and operational efficiency are significant strengths, but challenges with profitability and free cash flow raise concerns. Technically, the stock shows positive momentum, although valuation appears stretched with a high P/E ratio and no dividend yield, suggesting limited immediate upside.

Coastal Financial Business Overview & Revenue Model

Company Description

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

How the Company Makes Money

Coastal Financial Corporation generates revenue primarily through the interest income from its loan portfolio, including personal, commercial, and real estate loans. Additionally, the company earns money from service charges and fees associated with various banking activities such as account maintenance, overdrafts, and transaction processing. Another significant revenue stream comes from the interest earned on investment securities held by the bank. Coastal Financial also benefits from strategic partnerships and collaborations with financial technology firms, enhancing its product offerings and expanding its customer base, contributing to its earnings growth.

Coastal Financial Financial Statement Overview

Summary

Coastal Financial demonstrates strong revenue growth and operational efficiency, but recent profitability and free cash flow issues need attention. The balance sheet remains robust with low leverage, positioning the company well for future growth if cash flow challenges are resolved.

Income Statement

Coastal Financial showed strong revenue growth with a notable increase from 2023 to 2024. The EBIT margin remained high, indicating efficient operations. However, the absence of net income in 2024 raises concerns about profitability stability.

Balance Sheet

The balance sheet reflects a solid equity position with a relatively low debt-to-equity ratio, indicating financial stability. The equity ratio is healthy, but the net income dip in 2024 could impact future ROE.

Cash Flow

Free cash flow turned negative in 2024, suggesting challenges in cash generation. However, previous years showed strong operating cash flow, which could stabilize if net income issues are addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
396.78M	330.37M	213.59M	101.81M	65.57M
	Gross Profit
396.78M	330.37M	213.59M	101.81M	65.57M
	EBIT
0.00	57.13M	71.02M	34.38M	19.14M
	EBITDA
0.00	59.46M	0.00	35.96M	20.50M
	Net Income Common Stockholders
45.22M	44.58M	40.63M	27.00M	15.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.57M	582.63M	439.46M	848.49M	183.52M
	Total Assets
4.12B	3.75B	3.14B	2.64B	1.77B
	Total Debt
5.40M	53.86M	52.82M	59.19M	45.90M
	Net Debt
-31.14M	-429.27M	-289.32M	-753.97M	-117.22M
	Total Liabilities
3.68B	3.46B	2.90B	2.43B	1.63B
	Stockholders Equity
438.70M	294.98M	243.49M	201.22M	140.22M
Cash Flow		Free Cash Flow
-864.00K	190.27M	64.26M	27.25M	13.96M
	Operating Cash Flow
-864.00K	196.51M	67.10M	29.85M	19.33M
	Investing Cash Flow
-50.07M	-598.99M	-987.95M	-894.15M	-666.54M
	Financing Cash Flow
93.20M	543.46M	449.83M	859.84M	622.26M

Coastal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCB, the sentiment is Negative. The current price of 79.66 is below the 20-day moving average (MA) of 85.54, below the 50-day MA of 87.87, and above the 200-day MA of 68.82, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCB.

Coastal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VBTX	73 Outperform	$1.23B	11.60	6.85%	3.53%	2.74%	-1.34%
CCB	71 Outperform	$1.27B	24.50	12.33%	―	30.90%	-0.62%
TCBK	70 Outperform	$1.25B	10.96	9.65%	3.48%	6.25%	-1.62%
HOPE	69 Neutral	$1.24B	11.83	4.68%	5.75%	-6.33%	-25.89%
WABC	69 Neutral	$1.24B	8.95	16.67%	3.79%	-5.00%	-14.23%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
TFIN	53 Neutral	$1.25B	90.97	1.83%	―	2.91%	-66.09%

Coastal Financial Corporate Events

Coastal Financial Reports Mixed Fourth-Quarter 2024 Results

Coastal Financial Corporation reported its fourth-quarter 2024 financial results, highlighting significant achievements and challenges. The company completed a $98 million capital equity raise and showed a core net revenue growth of 4.8% from the previous quarter. Despite a decrease in overall revenue by 5.9% compared to the last quarter, the company retained its portion of fee income on sold credit card loans and signed letters of intent for new agreements. Coastal Financial sold $845.5 million in loans and saw a decrease in deposits. The company’s diluted EPS was $0.94, with a net income of $13.4 million, slightly down from the previous quarter but up compared to the same quarter last year. The focus remains on high-quality CCBX loans with lower yields and potential losses.