Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $621.74M
• Dividend Yield: 2.58%
• Average Volume (3M): 182.74K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.88
• Revenue Growth: 6.01%
• EPS Growth: 38.05%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 33,426,758
• 10 Day Avg. Volume: 194,672
• 30 Day Avg. Volume: 182,737
• PEG Ratio: 0.06
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 12.68
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: 6.78
• 1Y Price Target: $18.50
• Price Target Upside: -0.80% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): $223.82M

• Rating: 78 Outperform
• Price Target: $20.00 ▲(7.24% Upside)

Shore Bancshares receives a strong overall score driven by robust financial performance and positive technical indicators. The company's strategic corporate events further bolster its financial flexibility and market expansion plans. While the valuation is reasonable, the technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust expansion and market penetration, supporting long-term business sustainability and competitiveness.

Cash Flow Strength

Strong cash generation enhances the company's ability to invest in growth opportunities, service debt, and provide shareholder returns, ensuring financial resilience.

Strategic Capital Management

The capital raise through subordinated notes provides financial flexibility and supports strategic growth initiatives, enhancing the company's competitive positioning.

Negative Factors

Declining Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability and competitive advantage.

Increased Total Debt

Rising debt levels can strain financial resources and limit strategic flexibility, posing a risk to the company's long-term financial health if not managed properly.

Regulatory Risks

Potential regulatory changes could impose additional compliance costs and operational challenges, affecting the company's ability to maintain its market position.

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 generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The company's key revenue streams include interest income from commercial and residential loans, mortgage origination fees, and service charges on deposit accounts. Additionally, Shore Bancshares earns non-interest income through various sources such as wealth management fees, insurance commissions, and transaction fees. The company may also benefit from partnerships with local businesses and community organizations that enhance its customer base and support its lending operations. Economic conditions, interest rates, and regulatory factors also play significant roles in influencing its earnings.

Shore Bancshares Financial Statement Overview

Summary

Shore Bancshares demonstrates strong financial performance with impressive revenue and cash flow growth. The company maintains a stable balance sheet with a conservative leverage position. While profitability metrics have improved, the decline in gross profit margin warrants attention. Overall, the financial health of the company is solid, with potential for continued growth.

Income Statement

Shore Bancshares shows strong revenue growth with a TTM revenue growth rate of 86.6%, indicating robust expansion. The gross profit margin has decreased significantly from previous years, but the net profit margin has improved to 16.8% in the TTM, reflecting better cost management. EBIT and EBITDA margins have also improved, suggesting enhanced operational efficiency. However, the decline in gross profit margin is a concern that needs addressing.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.24, indicating a conservative leverage position. Return on equity has improved to 10.2% in the TTM, showcasing better profitability. The equity ratio remains strong, reflecting a solid capital structure. However, the increase in total debt over recent years could pose a risk if not managed carefully.

Cash Flow

Free cash flow has grown significantly by 73.1% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 4.64, suggesting efficient cash conversion. The free cash flow to net income ratio is also robust at 0.93. Overall, the cash flow position is strong, supporting future growth and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	339.15M	326.49M	238.42M	136.93M	83.67M	70.43M
Gross Profit	212.49M	196.96M	128.70M	122.46M	77.99M	59.45M
EBITDA	91.76M	74.74M	25.12M	48.00M	24.27M	23.52M
Net Income	56.90M	43.89M	11.23M	31.18M	15.37M	15.73M
Balance Sheet
Total Assets	6.28B	6.23B	6.01B	3.48B	3.46B	1.93B
Cash, Cash Equivalents and Short-Term Investments	530.63M	609.06M	482.93M	139.09M	700.60M	326.49M
Total Debt	135.89M	135.56M	85.15M	92.98M	68.61M	30.35M
Total Liabilities	5.70B	5.69B	5.50B	3.11B	3.11B	1.74B
Stockholders Equity	577.21M	541.07M	511.13M	364.29M	350.69M	195.02M
Cash Flow
Free Cash Flow	82.59M	41.66M	16.76M	50.23M	-10.95M	16.05M
Operating Cash Flow	86.33M	46.89M	22.71M	52.65M	-7.50M	18.43M
Investing Cash Flow	-138.38M	-134.54M	172.31M	-581.57M	38.19M	-280.08M
Financing Cash Flow	284.94M	175.09M	121.89M	811.00K	366.01M	353.60M

Shore Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHBI, the sentiment is Positive. The current price of 18.65 is above the 20-day moving average (MA) of 17.67, above the 50-day MA of 16.53, and above the 200-day MA of 15.30, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 74.44 is Negative, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHBI.

Shore Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHBI	78 Outperform	$621.74M	10.91	10.25%	2.58%	6.01%	38.05%
ALRS	76 Outperform	$595.82M	11.30	11.37%	3.71%	42.22%	1207.84%
GNTY	75 Outperform	―	―	―	―	1.61%	38.81%
BCAL	75 Outperform	$631.91M	10.06	11.93%	―	61.29%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HONE	62 Neutral	―	―	4.56%	2.89%	5.00%	72.45%
WASH	57 Neutral	$585.32M	―	-4.73%	7.28%	-27.82%	-159.63%

Shore Bancshares Corporate Events

Shore Bancshares Completes $60M Subordinated Notes Offering

On November 13, 2025, Shore Bancshares, Inc. completed a private placement of $60 million in 6.25% Fixed to Floating Rate Subordinated Notes due 2035. The proceeds from this issuance are intended for general corporate purposes and the repayment of existing debt. The notes, which initially bear a fixed interest rate for five years before transitioning to a floating rate, are expected to qualify as Tier 2 capital for regulatory purposes. This strategic move is likely to strengthen the company’s financial position and provide flexibility in managing its capital structure.

Shore Bancshares Releases Investor Presentation Detailing Strategy

Shore Bancshares released an investor presentation on September 30, 2025, detailing its financial position and strategic outlook. The presentation highlights the company’s strong market presence, particularly in Maryland, with a 25.60% deposit market share and a focus on expanding its services in Virginia and Delaware. The company emphasizes its commitment to managing growth and addressing potential risks, including economic conditions and regulatory changes, to maintain its competitive edge.