MeritValue

COASTAL FINANCIAL CORP

CCBdata completeness 88%9 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

COASTAL FINANCIAL CORP earns about 13% on equity, comfortably above its ~9% cost of capital, but has diluted owners by 23% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $30.09 and $1,004.39 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$83.1M1$192.2M2$323.2M3$396.8M3$429.6M3
Net income$27M4$40.6M5$44.6M6$45.2M6$47M6
Operating cash flow$29.8M7$67.1M8$191.5M9$259.8M9$254.6M9
Capital expenditure$2.59M10$2.84M11$6.25M12$9.9M12$8.44M12
Free cash flow (derived)$27.3M7$64.3M8$185.3M9$249.9M9$246.1M9
Total debt—————
Cash & equivalents$813.2M13$342.1M14$483.1M14$452.5M14$737M14
Diluted shares12.5M13.5M13.6M13.9M15.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$319.84
your share of equity
Profit it earned you last year
$30.61
Free cash flow it threw off
$160.36
Debt you’d be carrying
—

10 shares is a claim on $319.84 of net worth that earned you $30.61 and generated $160.36 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
13% avg · 5y
FY21 13%FY22 17%FY23 15%FY24 10%FY25 10%

It earned about 13% on equity against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+23% shares · 5y

Share count is up 23% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $30.09 and $1,004.39 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$1,004.39
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$246.1M
DCF · Growth Exit 5Y
$570.83
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$246.1M
Earnings Power Value
$30.09
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$44.6M
  • growthAssumed0.0%
Graham Number
$46.93
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $570.83
The three cases
Bear0.0%$277.12
Base20.0%$570.83
Bull20.0%$570.83

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437958-24-000052 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001437958-25-000058 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001437958-26-000013 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001437958-24-000052 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001437958-25-000058 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001437958-26-000013 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001437958-24-000052 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001437958-25-000058 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001437958-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001437958-24-000052 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001437958-25-000058 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001437958-26-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001437958-25-000058 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  14. 10-K · period ending 2022-12-31 · accession 0001437958-26-000013 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)