Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $464.24M
• Dividend Yield: 3.47%
• Average Volume (3M): 210.11K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.14
• Revenue Growth: 15.26%
• EPS Growth: 160.27%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 1.48
• Shares Outstanding: 33,374,264
• 10 Day Avg. Volume: 154,290
• 30 Day Avg. Volume: 210,107
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.00
• Price Target Upside: 36.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Shore Bancshares presents a solid financial performance with strong profitability and liquidity. The recent appointment of a new CFO is a positive strategic move. However, technical indicators suggest weak market momentum, and caution is advised despite the attractive valuation and dividend yield.

Shore Bancshares Business Overview & Revenue Model

Company Description

Shore Bancshares, Inc. (SHBI) is a financial holding company headquartered in Easton, Maryland. It operates primarily through its subsidiary, Shore United Bank, which provides a comprehensive range of banking and financial services. The company serves individual and business clients in the Mid-Atlantic region, offering products such as checking and savings accounts, loans, mortgages, and investment services. Shore Bancshares focuses on delivering personalized customer service and community engagement, leveraging its regional presence to cater to the financial needs of its customers.

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: Positive
• Last Price: 13.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.91 is above the 20-day moving average (MA) of 12.66, above the 50-day MA of 13.56, and below the 200-day MA of 14.46, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 91.58 is Negative, 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
UNTY	77 Outperform	$420.31M	9.80	15.17%	1.28%	6.99%	12.46%
SHBI	74 Outperform	$464.24M	9.39	9.27%	3.47%	15.26%	160.27%
ACNB	74 Outperform	$444.90M	14.53	7.44%	3.05%	22.17%	-15.57%
HONE	66 Neutral	$486.86M	18.12	4.44%	2.83%	5.42%	67.14%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
BCAL	61 Neutral	$452.66M	31.13	4.21%	―	60.34%	-63.03%
FFWM	49 Neutral	$413.58M	―	-9.34%	1.00%	6.75%	62.30%

Shore Bancshares Corporate Events

Shore Bancshares Appoints New CFO Charles S. Cullum

On April 17, 2025, Shore Bancshares, Inc. announced the appointment of Charles S. Cullum as Executive Vice President and Chief Financial Officer, effective April 21, 2025. This transition follows the retirement of Todd L. Capitani, who will remain with the company until August 15, 2025, to ensure a smooth leadership transition. Mr. Cullum, who brings over 20 years of financial experience, most recently served as CFO at Sandy Spring Bancorp. His appointment is expected to bolster Shore Bancshares’ strategic financial leadership as the company continues to pursue growth and innovation. The leadership change is anticipated to have a positive impact on the company’s operations and future strategic goals.

Spark’s Take on SHBI Stock

According to Spark, TipRanks’ AI Analyst, SHBI is a Neutral.

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.

To see Spark’s full report on SHBI stock, click here.

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.