NasdaqGS:CCB

Stock Analysis Report

Executive Summary

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to consumers and small to medium sized businesses in the Puget Sound region in Washington.

Rewards

PE ratio (16.1x) is below the US market (18.4x)

Earnings are forecast to grow 14.58% per year

Earnings grew by 81% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Coastal Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

CCB

2.7%

US Banks

1.1%

US Market


1 Year Return

22.0%

CCB

22.7%

US Banks

17.8%

US Market

Return vs Industry: CCB matched the US Banks industry which returned 22.7% over the past year.

Return vs Market: CCB exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

CCBIndustryMarket
7 Day2.8%2.7%1.1%
30 Day4.9%0.9%1.4%
90 Day6.3%10.0%3.9%
1 Year22.0%22.0%26.3%22.7%20.3%17.8%
3 Yearn/a31.8%22.6%44.8%35.4%
5 Yearn/a80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Coastal Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coastal Financial undervalued compared to its fair value and its price relative to the market?

16.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCB ($17.07) is trading above our estimate of fair value ($12.55)

Significantly Below Fair Value: CCB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CCB is poor value based on its PE Ratio (16.1x) compared to the Banks industry average (12.7x).

PE vs Market: CCB is good value based on its PE Ratio (16.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CCB is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CCB is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Coastal Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCB's forecast earnings growth (14.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CCB's earnings (14.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CCB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCB's revenue (11.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CCB's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCB's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Coastal Financial performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCB has high quality earnings.

Growing Profit Margin: CCB's current net profit margins (27.4%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: CCB's earnings have grown significantly by 27.4% per year over the past 5 years.

Accelerating Growth: CCB's earnings growth over the past year (81%) exceeds its 5-year average (27.4% per year).

Earnings vs Industry: CCB earnings growth over the past year (81%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: CCB's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CCB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CCB's debt is covered by short term assets (assets are 4.6x debt).


Financial Institutions Analysis

Asset Level: CCB's level of assets compared to its equity is low.

Allowance for Bad Loans: CCB has a sufficient allowance for bad loans.

Low Risk Liabilities: CCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: CCB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CCB's loans are broadly funded by customer deposits.

Level of Bad Loans: CCB has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend 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 CCB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Coastal Financial's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Eric Sprink (47yo)

9.9yrs

Tenure

US$866,344

Compensation

Mr. Eric M. Sprink has been Chief Executive Officer of Coastal Financial Corporation since 2010 and serves as its President. Mr. Sprink joined the Coastal Financial Corporation in late 2006 and served as i ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD866.34K) is about average for companies of similar size in the US market ($USD1.12M).

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


Management Age and Tenure

4.9yrs

Average Tenure

58yo

Average Age

Experienced Management: CCB's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

11.1yrs

Average Tenure

48.5yo

Average Age

Experienced Board: CCB's board of directors are seasoned and experienced ( 11.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$24,89606 Nov 19
Daniel Lee
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Credit & Risk Officer
Shares1,600
Max PriceUS$15.56
BuyUS$36,98320 Aug 19
Daniel Lee
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Credit & Risk Officer
Shares2,500
Max PriceUS$14.80
BuyUS$14,72516 Aug 19
Daniel Lee
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Credit & Risk Officer
Shares1,000
Max PriceUS$14.72
BuyUS$15,80028 May 19
Daniel Lee
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Credit & Risk Officer
Shares1,000
Max PriceUS$15.85
SellUS$14,474,32515 Mar 19
Gapstow Capital Partners, L.P.
EntityCompany
Shares964,955
Max PriceUS$15.00
BuyUS$8,50013 Mar 19
Daniel Lee
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Credit & Risk Officer
Shares500
Max PriceUS$17.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.7%.


Management Team

  • John Dickson (58yo)

    Executive VP & COO of Coastal Community Bank

    • Tenure: 0yrs
  • Joel Edwards (59yo)

    Executive VP

    • Tenure: 7.1yrs
    • Compensation: US$510.68k
  • Eric Sprink (47yo)

    President

    • Tenure: 9.9yrs
    • Compensation: US$866.34k
  • Dan Lee (62yo)

    Executive VP and Chief Credit & Risk Officer

    • Tenure: 1.2yrs
  • Erika Heer

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.2yrs
  • Russ Keithley (53yo)

    Executive VP & Chief Lending Officer of Coastal Community Bank

    • Tenure: 4.9yrs
    • Compensation: US$341.21k

Board Members

  • Steve Hovde (64yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$35.94k
  • Eric Sprink (47yo)

    President

    • Tenure: 9.9yrs
    • Compensation: US$866.34k
  • John Haugen (70yo)

    Independent Director

    • Tenure: 22.9yrs
    • Compensation: US$31.67k
  • Tom Lane (49yo)

    Independent Director

    • Tenure: 22.9yrs
    • Compensation: US$29.69k
  • Andy Skotdal (48yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$41.46k
  • Greg Tisdel (64yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$33.86k
  • Stephan Klee (45yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$20.83k
  • Andy Dale (52yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$30.42k
  • Chris Adams (39yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$32.61k
  • Sadhana Akella-Mishra (42yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

Coastal Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coastal Financial Corporation
  • Ticker: CCB
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$203.364m
  • Shares outstanding: 11.91m
  • Website: https://www.coastalbank.com

Number of Employees


Location

  • Coastal Financial Corporation
  • 5415 Evergreen Way
  • Everett
  • Washington
  • 98203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2018
1VDDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2018

Biography

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to consumers and small to medium sized businesses in the Pu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:02
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.