Company Overview
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank, which provides a comprehensive suite of banking products and services to consumers and small to medium-sized businesses located in the Puget Sound region of Washington. The company functions within the Financial Services sector, specifically categorized under the Banks - Regional industry, positioning it as a localized lender focused on community-level financial needs rather than national scale operations. As of the latest available data, the entity possesses a market capitalization of $1.17 billion and employs a workforce of 483 individuals to support its regional banking activities. The annual revenue generated by the company totals $349.04 million, a figure that indicates a significant operational scale for a regional institution, suggesting substantial asset deployment and customer base within its specific geographic footprint.
Financial Health
The company reported a Total Revenue of $349.04 million for the trailing twelve months, with a corresponding Net Income of $46.99 million, while EBITDA figures are not disclosed in the available data. The substantial gap between the total revenue of $349.04 million and the net income of $46.99 million reveals a cost structure where operating expenses, including interest on deposits and non-interest expenses, consume approximately 86.5% of total revenue before arriving at the bottom line. Free Cash Flow is not reported for this entity, which implies that the company either maintains a net cash position without significant cash outflows for capital expenditures relative to earnings, or that the metric is not calculated in the standard manner for this specific financial reporting period. The company reports a Gross Margin of 0.0%, a characteristic metric for banks where the cost of funds (interest paid on deposits) is directly offset by interest income, meaning gross profit is not a standard measure of profitability in this sector. Operating Margin stands at 20.0%, indicating that after covering all operating costs, the company retains one-fifth of its revenue as operating profit. Profit Margin is calculated at 13.5%, showing that for every dollar of revenue, the company generates 13.5 cents in net profit. Regarding liquidity and leverage, the company holds $736.97 million in cash against a debt load of $53.02 million, resulting in a Debt to Equity ratio that is not available in the provided data, yet the absolute cash position suggests a highly conservative balance sheet with minimal leverage relative to liquid assets. The Current Ratio is not disclosed, so a direct assessment of short-term liquidity relative to current liabilities cannot be made from the provided metrics. Return on Equity is 10.1%, which measures how effectively the company uses shareholder equity to generate profits, while Return on Assets is 1.1%, indicating the efficiency of the company's total asset base in generating net income.
Valuation Assessment
The trailing twelve-month P/E ratio is 25.11, while the forward P/E is significantly lower at 9.97, implying that the market expects earnings to increase substantially in the future to justify the current price-to-earnings multiple. The Price to Book ratio stands at 2.37, indicating that the market values the company at more than double its book value, suggesting investors are pricing in growth potential or brand value above the tangible net assets. The Price to Sales ratio is 3.35, and the EV/EBITDA ratio is not available; these alternative valuation metrics suggest that the company is priced at a premium relative to its sales revenue compared to traditional industrial peers, reflecting the high-margin nature of banking operations. The stock has traded between a 52-week low of $70.72 and a 52-week high of $120.05, and without the specific current share price, the exact percentage deviation from the high cannot be calculated, but the range demonstrates a volatility of approximately 41% over the past year. The Beta is 0.90, which indicates that the stock's price volatility is roughly equal to the broader market, moving slightly less than the overall market index during periods of fluctuation.
Growth & Income
Revenue growth over the last year was 6.4%, whereas earnings growth was negative at -12.4%, indicating that earnings are currently growing significantly slower than revenue, which implies rising costs or one-time charges impacting the bottom line. The company does not pay a dividend, as evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, meaning the company retains all of its earnings rather than distributing them to shareholders. This retention strategy suggests that the company reinvests its net income of $46.99 million back into the business, potentially for loan growth, technology upgrades, or branch expansion within the Puget Sound region. The overall growth and income profile is characterized by double-digit revenue expansion coupled with a contraction in profitability and a complete absence of dividend income for investors seeking regular cash distributions.