Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $489.84M
• Dividend Yield: 1.48%
• Average Volume (3M): 48.96K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.66
• 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: 56,959
• 30 Day Avg. Volume: 48,958
• 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: 1.12
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: $34.00
• Price Target Upside: 14.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.28
• Revenue Forecast (FY): $241.93M

• Rating: 76 Outperform
• Price Target: $32.00 ▲(7.96% Upside)

Capital Bancorp's strong financial performance and recent positive corporate events are the primary drivers of its overall score. While technical indicators present a mixed outlook, the company's solid valuation and strategic appointments enhance its long-term prospects. The absence of earnings call data limits the assessment of near-term guidance and sentiment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, strengthening long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, supporting strategic investments and debt management.

Leadership Changes

New leadership with strategic expertise can drive financial discipline and growth, positively impacting long-term performance.

Negative Factors

Deposit Decrease

A decline in deposits could indicate challenges in attracting or retaining customers, potentially impacting liquidity and growth.

Gross Profit Margin Pressure

Decreasing gross profit margins may signal rising costs or pricing pressures, affecting profitability and competitive positioning.

Operating Cash Flow Volatility

Volatile operating cash flow can affect financial stability and limit the ability to fund operations and growth initiatives.

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

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: 29.64
• 50DMA: Positive
• 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 29.64 is above the 20-day moving average (MA) of 28.62, above the 50-day MA of 28.45, and below the 200-day MA of 30.62, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.64 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
FMNB	77 Outperform	$544.09M	10.01	12.00%	4.72%	3.93%	17.48%
CBNK	76 Outperform	$489.84M	10.05	14.72%	1.48%	24.90%	28.06%
GNTY	75 Outperform	―	―	―	―	1.61%	38.81%
BCAL	75 Outperform	$629.97M	10.21	11.93%	―	61.29%	―
TCBX	73 Outperform	$563.82M	12.60	12.88%	―	9.12%	45.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FISI	61 Neutral	$648.61M	-13.49	-4.98%	3.80%	-28.00%	-174.60%

Capital Bancorp Corporate Events

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.

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.

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.

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.

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.