Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $523.88M
• Dividend Yield: 1.53%
• Average Volume (3M): 49.53K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.69
• Revenue Growth: 24.90%
• EPS Growth: 28.06%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 16,520,863
• 10 Day Avg. Volume: 51,458
• 30 Day Avg. Volume: 49,530
• 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: 1.05
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $32.00
• Price Target Upside: 0.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $33.00 ▲(4.07% Upside)

The score is driven primarily by strong underlying financial performance (profitability, low leverage, and improved free cash flow conversion) and supported by attractive valuation (low P/E). Technicals are neutral overall—near-term strength exists, but the stock remains below longer-term moving averages. Positive corporate actions (dividends, buybacks, and operational/leadership updates) provide an added tailwind.

Positive Factors

Low Financial Leverage

Very low debt-to-equity (0.086) and a strong equity ratio provide lasting balance sheet resilience. This conservative leverage profile supports capital returns, M&A optionality, and reduces interest expense sensitivity, improving the bank's ability to absorb shocks over months.

Strong Free Cash Flow Conversion

Material improvement in free cash flow and near-par FCF-to-net income conversion indicate durable cash generation. Reliable FCF supports dividends, buybacks, and reinvestment in lending and tech, strengthening long-term financial flexibility and shareholder return capacity.

Diversified Growth and Core Profitability

Record earnings driven by double-digit balance sheet growth, strong loan and deposit gains, and a high NIM demonstrate a diversified, profitable franchise. These structural drivers support sustained organic growth and create optionality for strategic bolt-on acquisitions and scale.

Negative Factors

Operating Cash Flow Volatility

Low operating cash flow relative to reported earnings suggests potential volatility in cash realizations. If operating cash conversion remains weak, the bank could face uneven internal funding for loans, dividends, or buybacks and greater reliance on external funding during stress.

Margin Erosion and Declining ROE

A declining gross margin and a reduction in ROE versus prior periods signal weakening asset profitability and efficiency. Sustained margin pressure or lower returns on equity would constrain long-term earnings power and limit capacity to sustainably grow shareholder returns.

Rapid Loan Growth Increases Credit Risk

Fast loan growth materially expands credit exposure and can increase concentration risk in commercial and mortgage portfolios. With a modest allowance relative to rapid origination, underwriting or economic deterioration could lead to higher provisions and pressure on capital over the medium term.

Capital Bancorp Business Overview & Revenue Model

Company Description

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products and services, including checking and savings, time, interest bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It originates residential mortgages and offers residential and commercial real estate, construction, and commercial business loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. It operates through four commercial bank branches, four mortgage offices, and one loan production office. The company was founded in 1974 and is headquartered in Rockville, Maryland.

How the Company Makes Money

Capital Bancorp generates revenue primarily through the interest income earned on loans and the fees associated with its banking services. The company issues various types of loans, including commercial real estate loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Additionally, Capital Bancorp earns non-interest income from service charges on deposit accounts, transaction fees, and wealth management services. The bank's revenue model is also supported by strategic partnerships with local businesses and community organizations, enhancing its customer base and service offerings. Overall, the combination of interest income and fee-based revenue streams forms the backbone of Capital Bancorp's earnings.

Capital Bancorp Financial Statement Overview

Summary

Financials are solid overall: income statement strength is supported by revenue growth and improved net margin, the balance sheet shows very low leverage (debt-to-equity 0.086) and healthy ROE (13.25%), and cash generation improved materially with strong free cash flow growth and high FCF-to-net income conversion. Offsetting factors include a slight decline in gross margin, a decrease in ROE versus prior periods, and weaker operating cash flow-to-net income indicating potential cash flow volatility.

Income Statement

Capital Bancorp shows strong revenue growth with a 5.52% increase in TTM, supported by a solid gross profit margin of 69.71%. The net profit margin improved to 21.79%, indicating efficient cost management. EBIT and EBITDA margins also reflect healthy operational efficiency. However, the gross profit margin has slightly decreased from previous years, suggesting potential pressure on cost control.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.086, highlighting prudent financial leverage. Return on equity is healthy at 13.25%, though slightly lower than previous years, indicating stable profitability. The equity ratio is strong, reflecting a solid capital structure. However, the decrease in ROE from prior periods suggests a need for improved asset utilization.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 75.42% for TTM, demonstrating enhanced cash generation capabilities. The free cash flow to net income ratio is high at 97.39%, indicating effective conversion of profits into cash. However, the operating cash flow to net income ratio is low, suggesting potential volatility in cash flow relative to earnings.

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: Positive
• Last Price: 31.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBNK, the sentiment is Positive. The current price of 31.71 is above the 20-day moving average (MA) of 29.74, above the 50-day MA of 29.05, and above the 200-day MA of 30.90, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 71.76 is Negative, neither overbought nor oversold. The STOCH value of 91.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBNK.

Capital Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNK	77 Outperform	$523.88M	9.30	14.72%	1.53%	24.90%	28.06%
TCBX	74 Outperform	$585.40M	11.76	13.37%	―	9.12%	45.83%
FMNB	72 Outperform	$490.24M	8.98	12.00%	4.95%	3.93%	17.48%
BCAL	72 Outperform	$592.15M	9.49	11.93%	―	61.29%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FISI	59 Neutral	$683.43M	9.40	-4.98%	3.89%	-28.00%	-174.60%

Capital Bancorp Corporate Events

Capital Bancorp Reports Record Q4 2025 Earnings Growth

On January 26, 2026, Capital Bancorp reported fourth-quarter 2025 GAAP net income of $15.0 million, or $0.91 per diluted share, essentially flat versus the prior quarter but up sharply from $7.5 million a year earlier, as record full-year 2025 earnings were driven by double-digit balance sheet growth and a robust 1.71% return on assets. For the quarter ended December 31, 2025, the bank posted strong loan growth of 19.3% on an annualized basis and 12.5% year over year, deposit growth of 24.6% annualized from the third quarter and 12.0% from the prior year, expanding tangible book value per share by 3.4% from the third quarter and 15.5% from fourth-quarter 2024, while maintaining an allowance for credit losses of 1.85% of total loans and generating a net interest margin of 5.94% despite lower purchase accounting accretion. Core profitability metrics improved, with core ROA at 1.71%, core ROE at 15.23% and core ROTCE at 17.23%, and the company underscored its capital return and balance-sheet management by declaring a $0.12 per share cash dividend payable February 28, 2026 and repurchasing 304,288 shares in the quarter at an average price of $28.12, signaling continued confidence in its strategy and positioning for profitable organic growth and future bolt-on acquisitions following completion of the IFH integration.

The most recent analyst rating on (CBNK) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp Announces Executive Leadership Realignment and CEO Focus

On December 24, 2025, Capital Bancorp, Inc. and Capital Bank, N.A. approved a new employment agreement for Chief Executive Officer Edward F. Barry, effective January 1, 2026 through December 31, 2027, restructuring leadership responsibilities so Barry can concentrate on enterprise-wide strategy, investor relations, M&A activity and oversight of major business lines including Open Sky and Capital Bank Home Mortgage. In connection with this renewed contract, announced publicly on December 30, 2025, Steve Poynot, currently President and Chief Operating Officer, will be promoted to Chief Executive Officer of Capital Bank, N.A. as of January 1, 2026, formalizing his leadership of the commercial bank and Windsor Advantage while Barry’s package is enhanced with higher incentive opportunities, equity awards and detailed severance protections, collectively signaling a deliberate leadership realignment to support Capital Bancorp’s long-term growth plan as a high-performing, diversified financial services enterprise and providing stakeholders with clearer executive focus at both the holding company and bank levels.

The most recent analyst rating on (CBNK) stock is a Buy 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 Appoints Mark Caplan as Director

On November 21, 2025, Capital Bancorp, Inc. appointed Mark Caplan as a Class II director on its Board, increasing the Board’s size to thirteen members. Mr. Caplan, who has been with the Bank’s Board since 2019, is recognized as an independent director and will serve on the Compensation and Risk Committees. His appointment is expected to enhance the company’s governance and strategic oversight.

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 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.