Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $402.23M
• Dividend Yield: 3.98%
• Average Volume (3M): 255.94K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.17
• Revenue Growth: 30.29%
• EPS Growth: 103.33%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 1.32
• Shares Outstanding: 33,352,165
• 10 Day Avg. Volume: 229,843
• 30 Day Avg. Volume: 255,941
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.30
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 2.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.17
• Price Target Upside: 55.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Shore Bancshares shows strong financial health, with a stable balance sheet and solid revenue growth. However, technical indicators reveal weak market momentum, and while the valuation appears reasonable, caution is advised due to current market trends.

Shore Bancshares Business Overview & Revenue Model

Company Description

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. Further, the company provides merchant credit card clearing, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; direct deposit of payroll; and automatic teller machine (ATM) services. It operates 29 full service branches, 30 ATMs, and 5 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. The company was founded in 1876 and is headquartered in Easton, Maryland.

How the Company Makes Money

Shore Bancshares makes money primarily through interest income generated from its lending activities, including commercial, real estate, and consumer loans. The bank earns interest on the loans it provides, which typically exceeds the interest it pays on customer deposits, creating a net interest margin. Additionally, the company generates non-interest income from fees and service charges related to deposit accounts, loan servicing, and other financial services. Shore Bancshares also benefits from investment income derived from securities and other financial instruments. These revenue streams are supported by the company's strategic focus on expanding its market presence and maintaining strong customer relationships.

Shore Bancshares Financial Statement Overview

Summary

Overall, Shore Bancshares exhibits solid financial performance with strong revenue growth and stable financial health. While profitability and cash flow management are areas for improvement, the company's low leverage and strong equity position provide a solid foundation for future growth.

Income Statement

Shore Bancshares demonstrates strong revenue growth, with a significant increase in total revenue from 2023 to 2024. The company maintains a robust gross profit margin, indicating effective cost management. However, the net profit margin could be improved to enhance overall profitability.

Balance Sheet

The company has a healthy equity position with a stable equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting low financial leverage and reduced risk. However, the return on equity is moderate, reflecting potential room for efficiency improvements.

Cash Flow

Shore Bancshares shows fluctuations in operating cash flow, but maintains positive free cash flow, indicating decent cash management. The free cash flow to net income ratio suggests the company is generating sufficient cash relative to its profits, although improvements in cash flow growth are needed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
295.34M	128.70M	124.39M	77.63M	63.35M
	Gross Profit
295.34M	128.70M	124.39M	77.63M	63.35M
	EBIT
289.50M	0.00	54.68M	21.18M	21.05M
	EBITDA
0.00	0.00	-5.58M	-10.28M	-1.07M
	Net Income Common Stockholders
43.89M	11.23M	31.18M	15.37M	15.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.01M	482.93M	139.09M	700.60M	326.49M
	Total Assets
6.23B	6.01B	3.48B	3.46B	1.93B
	Total Debt
11.84M	85.15M	92.98M	64.46M	29.30M
	Net Debt
-32.16M	-287.26M	37.48M	-519.15M	-157.61M
	Total Liabilities
5.69B	5.50B	3.11B	3.11B	1.74B
	Stockholders Equity
541.07M	511.13M	364.29M	350.69M	195.02M
Cash Flow		Free Cash Flow
41.66M	16.76M	50.23M	-10.95M	16.05M
	Operating Cash Flow
46.89M	22.71M	52.65M	-7.50M	18.43M
	Investing Cash Flow
-134.54M	172.31M	-581.57M	38.19M	-280.08M
	Financing Cash Flow
175.09M	121.89M	811.00K	366.01M	353.60M

Shore Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHBI, the sentiment is Negative. The current price of 12.36 is below the 20-day moving average (MA) of 13.03, below the 50-day MA of 14.27, and below the 200-day MA of 14.36, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 29.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHBI.

Shore Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACNB	75 Outperform	$416.23M	10.58	10.97%	3.24%	14.82%	0.62%
UNTY	74 Outperform	$400.69M	9.34	15.17%	1.34%	6.99%	12.46%
SHBI	65 Neutral	$402.23M	9.15	8.34%	3.98%	30.29%	103.33%
Sector *	63 Neutral	$12.75B	9.36	8.64%	84.32%	13.82%	-3.89%
HONE	59 Neutral	$399.75M	13.97	4.73%	3.47%	11.49%	82.82%
BCAL	58 Neutral	$397.25M	65.97	1.36%	―	41.74%	-85.66%
FFWM	44 Neutral	$390.41M	―	-9.34%	1.05%	6.75%	62.30%

Shore Bancshares Corporate Events

Shore Bancshares Releases Year-End Investor Presentation

Shore Bancshares, Inc. released an investor presentation on December 31, 2024, detailing its financial information for potential investor and analyst meetings. The presentation highlights the company’s financial performance, including assets and loans, and discusses various factors that could impact future results, such as economic conditions, regulatory changes, and cybersecurity threats. The presentation also emphasizes the company’s focus on managing growth and executing its strategy amidst industry challenges.