Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $459.28M
• Dividend Yield: 1.56%
• Average Volume (3M): 46.00K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.70
• Revenue Growth: 24.90%
• EPS Growth: 28.06%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 16,520,863
• 10 Day Avg. Volume: 43,320
• 30 Day Avg. Volume: 46,000
• PEG Ratio: -0.78
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 12.68
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: $34.00
• Price Target Upside: 20.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $32.00 ▲(13.80% Upside)

Capital Bancorp's strong financial performance is the primary driver of its stock score, supported by solid revenue growth, profitability, and a robust balance sheet. However, technical analysis indicates bearish momentum, which negatively impacts the score. The stock's valuation is attractive, suggesting potential for appreciation. Overall, the stock presents a stable financial position with some risks related to market momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Leadership Change

The new CFO's strategic expertise could drive financial planning and growth, potentially improving operational efficiency and profitability.

Negative Factors

Operating Cash Flow Volatility

Volatile operating cash flow can impact the company's ability to fund operations and growth, posing a risk to financial stability.

Decreasing ROE

A decrease in ROE suggests potential inefficiencies in asset utilization, which could affect long-term profitability and investor returns.

Gross Profit Margin Pressure

Decreasing gross profit margin may indicate rising costs or pricing pressures, potentially impacting future profitability.

Capital Bancorp Business Overview & Revenue Model

Company Description

Capital Bancorp (CBNK) is a financial holding company based in the United States, primarily engaged in providing banking and related financial services through its wholly-owned subsidiary, Capital Bank. The company operates primarily in the banking sector, offering a range of products including commercial and residential loans, deposit accounts, and treasury management services. Capital Bancorp focuses on serving small to medium-sized businesses and individuals, with an emphasis on community banking and personalized service.

How the Company Makes Money

Capital Bancorp generates its revenue primarily through interest income earned on loans and investments, as well as non-interest income from various banking services. The key revenue streams include interest from commercial and consumer loans, mortgage loans, and fees from deposit accounts and other banking services. Additionally, the company may earn fees from treasury management services, which involve managing cash flow and liquidity for business clients. Partnerships with local businesses and community organizations enhance its client base and can lead to increased loan origination and deposit growth, further contributing to its earnings. Economic factors such as interest rates and local market conditions also play a significant role in the company's profitability.

Capital Bancorp Financial Statement Overview

Summary

Capital Bancorp exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and the company effectively utilizes equity to generate returns. However, declining free cash flow growth and a low operating cash flow to net income ratio highlight areas for improvement in cash management.

Income Statement

Capital Bancorp has demonstrated strong revenue growth with a TTM increase of 7.3%, supported by solid gross and net profit margins of 70.5% and 15.3%, respectively. The EBIT and EBITDA margins are healthy at 18.7% and 19.7%, indicating efficient operational management. However, the slight decline in EBIT compared to the previous year suggests a need for careful cost management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.09, reflecting conservative leverage practices. The return on equity is commendable at 12.5%, showcasing effective use of shareholder funds. However, the equity ratio is not explicitly provided, which could offer further insights into asset management.

Cash Flow

While Capital Bancorp's free cash flow to net income ratio is strong at 95.3%, indicating good cash generation relative to earnings, the free cash flow growth rate has declined by 28.8% TTM, suggesting potential challenges in sustaining cash flow levels. The operating cash flow to net income ratio is relatively low, which may indicate less cash being generated from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	298.06M	242.28M	206.55M	180.02M	173.88M	147.40M
Gross Profit	215.01M	165.62M	155.36M	163.35M	163.97M	122.97M
EBITDA	71.96M	44.05M	46.70M	55.67M	55.08M	37.03M
Net Income	49.67M	30.97M	35.87M	41.80M	39.98M	25.82M
Balance Sheet
Total Assets	3.39B	3.21B	2.23B	2.12B	2.06B	1.88B
Cash, Cash Equivalents and Short-Term Investments	420.44M	307.96M	138.17M	312.21M	364.19M	244.32M
Total Debt	34.06M	34.06M	49.06M	129.06M	34.06M	36.02M
Total Liabilities	2.99B	2.85B	1.97B	1.90B	1.86B	1.72B
Stockholders Equity	394.77M	355.14M	254.86M	224.01M	197.90M	159.31M
Cash Flow
Free Cash Flow	73.20M	32.77M	45.26M	49.84M	132.05M	5.19M
Operating Cash Flow	77.17M	34.93M	47.42M	51.39M	132.08M	5.46M
Investing Cash Flow	-272.51M	-269.95M	-130.84M	-198.46M	-238.23M	-385.51M
Financing Cash Flow	227.50M	386.39M	56.97M	44.09M	142.64M	412.14M

Capital Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBNK, the sentiment is Neutral. The current price of 28.12 is above the 20-day moving average (MA) of 27.61, below the 50-day MA of 29.01, and below the 200-day MA of 30.71, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBNK.

Capital Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCAL	80 Outperform	$617.36M	9.86	11.93%	―	61.29%	―
GNTY	75 Outperform	―	―	―	―	1.61%	38.81%
FMNB	72 Outperform	$511.71M	9.41	12.00%	5.00%	3.93%	17.48%
TCBX	68 Neutral	$535.89M	11.72	12.88%	―	9.12%	45.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBNK	67 Neutral	$459.28M	9.43	14.72%	1.56%	24.90%	28.06%
FISI	60 Neutral	$578.95M	-11.89	-4.98%	4.21%	-28.00%	-174.60%

Capital Bancorp Corporate Events

Capital Bancorp Appoints Jacob Dalaya as CFO

On November 14, 2025, Capital Bancorp announced the appointment of Jacob Dalaya as Chief Financial Officer, effective November 13, 2025. Dalaya, who joined the company in October 2023 as Chief Strategy Officer, has extensive experience in strategic and financial planning, mergers and acquisitions, and capital raising. His appointment is expected to bolster Capital Bancorp’s growth strategy and financial discipline, as emphasized by CEO Edward Barry. The company also outlined Dalaya’s compensation package and severance benefits, reflecting the significance of his role in driving the bank’s future performance.

The most recent analyst rating on (CBNK) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp Announces Redemption of Subordinated Notes

On October 28, 2025, Capital Bancorp, Inc. announced its decision to redeem all outstanding 5.00% Fixed-to-Floating Rate Subordinated Notes due November 30, 2030. The redemption, set for November 30, 2025, involves a total of $10,000,000 and will be executed at 100% of the principal amount plus any accrued interest, impacting the company’s financial obligations and potentially its liquidity management strategy.

The most recent analyst rating on (CBNK) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp Declares Dividend Amid Strong Q3 Growth

On October 24, 2025, Capital Bancorp‘s Board of Directors declared a $0.12 per share dividend, payable on November 26, 2025, to stockholders of record on November 10, 2025. For the third quarter of 2025, the company reported a net income of $15.1 million, or $0.89 per share, reflecting continued strong growth in loans and book value. The acquisition of IFH contributed significantly to this growth, with gross loans increasing by $82.2 million during the quarter. Despite a decrease in total deposits, the company saw substantial year-over-year growth due to the acquisition. The company also reported a robust return on equity and tangible book value, with a focus on strategic investments in technology and infrastructure to ensure long-term superior returns for shareholders.

The most recent analyst rating on (CBNK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp CFO Resignation Announced

On October 10, 2025, Capital Bancorp‘s CFO, Dominic C. Canuso, announced his resignation effective October 27, 2025, to pursue another opportunity, with no disagreements with the company. Connie Egan, the Chief Accounting Officer, will assume the role of Principal Financial and Accounting Officer starting October 28, 2025, while a nationwide search for a permanent replacement is conducted.

The most recent analyst rating on (CBNK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.