Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $567.16M
• Dividend Yield: 1.17%
• Average Volume (3M): 79.62K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.64
• Revenue Growth: 18.85%
• EPS Growth: 6.74%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 16,564,340
• 10 Day Avg. Volume: 110,497
• 30 Day Avg. Volume: 79,622
• PEG Ratio: 0.79
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.90
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 1.42
• 1Y Price Target: $35.33
• Price Target Upside: 1.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $39.00 ▲(12.39%Upside)

Capital Bancorp's stock score reflects solid financial performance and a strong technical setup, albeit with some caution due to overbought technical indicators. The valuation is fair, but the modest dividend yield may be less appealing to certain investors.

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 through several key streams. Primarily, the company earns money through interest income from loans and mortgages extended to individuals and businesses. Additionally, it collects fee income from account maintenance, transaction fees, and other banking services. Wealth management services also contribute to the company's revenue by offering investment advisory and management services that generate fees based on assets under management. Furthermore, Capital Bancorp may engage in strategic partnerships with other financial institutions to expand its service offerings and reach, enhancing its revenue potential.

Capital Bancorp Financial Statement Overview

Summary

Capital Bancorp has demonstrated strong revenue growth and a robust equity position with no debt, reducing financial risk. However, declining net profit margins and reduced operating cash flow indicate challenges in maintaining profitability and liquidity. The overall financial health is positive, with significant equity and revenue growth, but attention to managing expenses and cash flow is essential for sustained performance.

Income Statement

Capital Bancorp has shown a steady increase in revenue over the years with a notable 18.55% growth from 2023 to 2024. The gross profit margin remained constant at 100% due to the nature of the banking industry. However, net profit margin declined from 22.84% in 2023 to 16.64% in 2024, indicating increased expenses relative to revenue. The absence of EBIT and EBITDA data for 2024 limits comprehensive margin analysis but prior years showed healthy EBIT margins. Overall, the income statement reflects strong revenue growth but declining profitability.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of 40.08% in 2024, up from 11.45% in 2023. The company has no debt as of 2024, substantially improving its debt-to-equity ratio from previous years, which reduces financial risk. Return on equity decreased to 3.11% in 2024 from 14.07% in 2023, suggesting lower profitability relative to shareholders' equity. The financial stability is enhanced by a substantial increase in stockholders' equity.

Cash Flow

Operating cash flow decreased significantly from $47.42 million in 2023 to $19.83 million in 2024, impacting free cash flow, which also declined. Free cash flow to net income ratio improved to 0.64 in 2024 from 1.26 in 2023, indicating better cash generation relative to net income. However, the decrease in operating cash flow suggests potential liquidity challenges. Overall, cash flow management appears stable but with potential risks due to declining cash inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.25M	242.28M	206.55M	180.02M	173.88M	147.40M
Gross Profit	183.86M	165.62M	155.36M	163.35M	163.97M	122.97M
EBITDA	54.29M	44.05M	46.70M	55.67M	55.08M	37.03M
Net Income	38.34M	30.97M	35.87M	41.80M	39.98M	25.82M
Balance Sheet
Total Assets	3.35B	3.21B	2.23B	2.12B	2.06B	1.88B
Cash, Cash Equivalents and Short-Term Investments	384.32M	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	2.98B	2.85B	1.97B	1.90B	1.86B	1.72B
Stockholders Equity	369.58M	355.14M	254.86M	224.01M	197.90M	159.31M
Cash Flow
Free Cash Flow	58.57M	32.77M	45.26M	49.84M	132.05M	5.19M
Operating Cash Flow	60.92M	34.93M	47.42M	51.39M	132.08M	5.46M
Investing Cash Flow	-273.39M	-269.95M	-130.84M	-198.46M	-238.23M	-385.51M
Financing Cash Flow	421.25M	386.39M	56.97M	44.09M	142.64M	412.14M

Capital Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.70
• 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 34.7 is above the 20-day moving average (MA) of 32.31, above the 50-day MA of 31.85, and above the 200-day MA of 28.88, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 71.51 is Negative, neither overbought nor oversold. The STOCH value of 89.01 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
CCNE	77 Outperform	$497.21M	10.17	8.83%	3.04%	8.67%	-1.65%
EBTC	74 Outperform	$495.83M	12.14	11.31%	2.52%	14.10%	12.00%
CBNK	74 Outperform	$567.16M	13.78	12.19%	1.17%	18.85%	6.74%
PGC	68 Neutral	$514.16M	16.12	5.31%	0.69%	6.72%	-17.45%
Sector *	64 Neutral	$6.55B	10.89	6.59%	5.08%	24.65%	0.99%
NPB	59 Neutral	$483.17M	―		―	―	―
FISI	58 Neutral	$531.70M	8.52	-5.18%	4.69%	-23.31%	-169.87%

Capital Bancorp Corporate Events

Capital Bancorp Holds Annual Stockholders Meeting

At the Annual Meeting of Stockholders held on May 15, 2025, Capital Bancorp, Inc. stockholders voted on several key proposals. These included the election of directors, approval of executive compensation, amendment of the stock compensation plan, and ratification of the company’s accounting firm. The election resulted in the appointment of four Class II directors for terms ending in 2028 and one Class III director for a term ending in 2026. The stockholders also approved the executive compensation and ratified the appointment of Elliott Davis, PLLC as the independent accounting firm for the fiscal year ending December 31, 2025. However, the amendment to increase shares under the 2017 Stock and Incentive Compensation Plan faced significant opposition.

The most recent analyst rating on (CBNK) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp Amends Executive Employment Agreements

Capital Bancorp, Inc. announced amendments to the employment agreements of key executives, effective with the 2025 bonus payable in 2026. The changes include increased maximum annual incentive opportunities for Steven Poynot, President and COO of Capital Bank, N.A., and Dominic Canuso, CFO of the company, as well as for Karl Dicker, President of OpenSky™ & Fintech, enhancing their potential compensation for overachievement.