Coastal Financial (DB:1VD) - Share price, News & Analysis

Q: What is the Fair Price of 1VD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1VD (€35.4) is trading below our estimate of [[fair value]] (€107.05)

1VD fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

1VD Stock Overview

Rewards

Trading at 66.9% below our estimate of its fair value

Earnings are forecast to grow 43.52% per year

Earnings grew by 47.6% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Coastal Financial Competitors

UmweltBank

XTRA:UBK

€597.1m

Merkur PrivatBank KgaA

XTRA:MBK

€119.0m

ProCredit Holding KGaA

XTRA:PCZ

€210.3m

Deutsche Pfandbriefbank

XTRA:PBB

€1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Coastal Financial
Historical stock prices
Current Share Price	US$35.40
52 Week High	US$47.80
52 Week Low	US$23.00
Beta	1.24
1 Month Change	-2.21%
3 Month Change	-12.81%
1 Year Change	48.74%
3 Year Change	165.41%
5 Year Change	n/a
Change since IPO	166.37%

Shareholder Returns

	1VD	DE Banks	DE Market
7D	0.6%	-1.7%	-1.1%
1Y	48.7%	-14.6%	-23.8%

Return vs Industry: 1VD exceeded the German Banks industry which returned -11.1% over the past year.

Return vs Market: 1VD exceeded the German Market which returned -22.2% over the past year.

Price Volatility

Is 1VD's price volatile compared to industry and market?
1VD volatility
1VD Average Weekly Movement	3.9%
Banks Industry Average Movement	4.5%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: 1VD is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1VD's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	401	Eric Sprink	https://www.coastalbank.com

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.

Coastal Financial Fundamentals Summary

How do Coastal Financial's earnings and revenue compare to its market cap?
1VD fundamental statistics
Market Cap	US$490.12m
Earnings (TTM)	US$27.22m
Revenue (TTM)	US$116.01m

18.0x

P/E Ratio

2.4x

P/B Ratio

Is 1VD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1VD income statement (TTM)
Revenue	US$116.01m
Cost of Revenue	US$0
Gross Profit	US$116.01m
Other Expenses	US$88.79m
Earnings	US$27.22m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.10
Gross Margin	100.00%
Net Profit Margin	23.46%
Debt/Equity Ratio	13.4%

How did 1VD perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1VD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1VD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1VD. This is calculated by dividing 1VD's market cap by their current preferred multiple.
What is 1VD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$490.12m

1VD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 1VD's PE Ratio compare to its peers?

1VD PE Ratio vs Peers

The above table shows the PE ratio for 1VD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.1x
UBK UmweltBank	30.8x	n/a	€597.1m
MBK Merkur PrivatBank KgaA	13x	5.9%	€119.0m
PCZ ProCredit Holding KGaA	3.4x	47.5%	€210.3m
PBB Deutsche Pfandbriefbank	5.6x	-0.8%	€1.2b
1VD Coastal Financial	18x	43.5%	€490.1m

Forward PE

Price-To-Earnings vs Peers: 1VD is expensive based on its Price-To-Earnings Ratio (18x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

How does 1VD's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: 1VD is expensive based on its Price-To-Earnings Ratio (18x) compared to the European Banks industry average (9x)

Price to Earnings Ratio vs Fair Ratio

What is 1VD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1VD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18x
Fair PE Ratio	17.1x

Price-To-Earnings vs Fair Ratio: 1VD is expensive based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).

Share Price vs Fair Value

What is the Fair Price of 1VD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1VD (€35.4) is trading below our estimate of fair value (€107.05)

Significantly Below Fair Value: 1VD is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1VD is good value based on its PEG Ratio (0.4x)

Discover undervalued companies

Future Growth

How is Coastal Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

43.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1VD's forecast earnings growth (43.5% per year) is above the savings rate (-0.01%).

Earnings vs Market: 1VD's earnings (43.5% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: 1VD's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1VD's revenue (39.2% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: 1VD's revenue (39.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1VD's Return on Equity is forecast to be low in 3 years time (19.7%).

Discover growth companies

Past Performance

How has Coastal Financial performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

34.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1VD has high quality earnings.

Growing Profit Margin: 1VD's current net profit margins (23.5%) are lower than last year (28.5%).

Past Earnings Growth Analysis

Earnings Trend: 1VD's earnings have grown significantly by 34.9% per year over the past 5 years.

Accelerating Growth: 1VD's earnings growth over the past year (47.6%) exceeds its 5-year average (34.9% per year).

Earnings vs Industry: 1VD earnings growth over the past year (47.6%) exceeded the Banks industry 33.3%.

Return on Equity

High ROE: 1VD's Return on Equity (13.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Coastal Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: 1VD's Assets to Equity ratio (13.6x) is moderate.

Allowance for Bad Loans: 1VD has a sufficient allowance for bad loans (1653%).

Low Risk Liabilities: 98% of 1VD's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1VD has an appropriate level of Loans to Assets ratio (68%).

Low Risk Deposits: 1VD's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: 1VD has an appropriate level of bad loans (0.1%).

Discover healthy companies

Dividend

What is Coastal Financial current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1VD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1VD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1VD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1VD's dividend payments have been increasing.

Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1VD's dividend in 3 years as they are not forecast to pay a notable one for the German market.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

Eric Sprink (48 yo)

12.42yrs

Tenure

US$4,773,916

Compensation

Mr. Eric M. Sprink serves as General Partner, Banktech Ventures, LP at BankTech Ventures, LP. He has been Chief Executive Officer of Coastal Financial Corporation since 2010 and served as its President unt...

CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD4.77M) is above average for companies of similar size in the German market ($USD991.52K).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 1VD's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: 1VD's board of directors are considered experienced (6.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 1VD insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31