Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $621.91M
• Dividend Yield: 2.66%
• Average Volume (3M): 198.53K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.93
• Revenue Growth: 6.01%
• EPS Growth: 38.05%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.48
• Shares Outstanding: 33,418,125
• 10 Day Avg. Volume: 230,574
• 30 Day Avg. Volume: 198,526
• PEG Ratio: 0.28
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 33.06
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $20.50
• Price Target Upside: 10.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.97
• Revenue Forecast (FY): $240.63M

• Rating: 64 Neutral
• Price Target: $20.00 ▲(7.47% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is driven primarily by solid recent financial recovery and improving profitability/leverage, tempered by uneven financial quality due to cash-flow volatility and prior earnings swings. Valuation is supportive (low P/E and dividend), while technicals are neutral-to-soft with weaker near-term momentum despite a constructive longer-term trend.

Positive Factors

Multi-year revenue expansion

Sustained revenue growth over multiple years shows successful scale-up of lending and deposit businesses, expanding core earnings capacity. This enlarges the franchise, supports higher fixed-cost absorption and creates a stronger base for long-term net interest and fee income generation.

Improving profitability and returns

Rising ROE and reported strong return-on-tangible metrics indicate more efficient capital use and recovery from prior weakness. Higher returns enhance internal capital generation, help fund organic growth, and reduce reliance on external capital for strategic initiatives over the medium term.

Moderate leverage and equity build

Lower leverage and rising equity strengthen the bank's capital buffer versus peers, improving loss-absorption and regulatory resilience. A firmer capital base supports measured loan growth, dividend capacity and strategic investments without materially increasing funding risk.

Negative Factors

Cash-flow volatility

Large year-to-year swings in operating and free cash flow reduce predictability of internal funding for lending, dividends and investments. Inconsistent cash conversion limits strategic flexibility and elevates execution risk during stress or funding-tight environments.

Earnings cyclicality and volatility

Pronounced cyclicality in margins and earnings suggests performance is sensitive to rate, credit and fee mix shifts. Such volatility complicates forecasting, may pressure lender pricing discipline in downturns, and can make sustained payout/expansion plans harder to commit to.

Large asset base vs equity amplifies swings

High assets-to-equity typical of banks boosts ROE in good times but magnifies losses in downturns. This structural leverage heightens exposure to credit, interest-rate and deposit shocks, requiring conservative underwriting and capital planning to preserve long-term stability.

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

Strong multi-year revenue expansion and a clear earnings recovery in 2024–2025 with improved margins and ROE, plus moderate leverage. Offsetting this, results show notable cyclicality (sharp profitability dip in 2023) and cash-flow volatility, including a large 2025 free-cash-flow decline versus 2024.

Income Statement

Revenue has expanded strongly over the last several years (from $70.4M in 2020 to $342.7M in 2025), with 2025 growth still positive (~5%). Profitability also improved meaningfully versus 2023, with 2025 net income of $59.5M and net margin rising to ~17.4% (vs ~13.4% in 2024 and ~4.7% in 2023). The main weakness is volatility: margins were exceptionally high in 2021–2022, dropped sharply in 2023, then recovered in 2024–2025, suggesting earnings power may be more cyclical/sensitive than the recent results alone imply.

Balance Sheet

Leverage appears moderate for the period shown, with debt-to-equity improving to ~0.19 in 2025 from ~0.25 in 2024, while equity continued to build ($589.9M in 2025 vs $541.1M in 2024). Returns on equity have also strengthened to ~10.1% in 2025 (up from ~8.1% in 2024 and ~2.2% in 2023), indicating better profitability on the capital base. A key watch item is the large asset base relative to equity (typical for banks), which can amplify performance swings—reflected by the sharp ROE dip in 2023.

Cash Flow

Cash generation is the soft spot. Operating cash flow and free cash flow were positive in 2025 ($17.9M), but fell sharply versus 2024 (free cash flow down ~78%), and the history shows inconsistency (negative operating cash flow and free cash flow in 2021). While free cash flow has often been close to reported earnings in several years, the large year-to-year swings reduce confidence in the stability of cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	342.72M	326.49M	238.42M	136.93M	83.67M
Gross Profit	216.69M	196.96M	128.70M	122.46M	77.99M
EBITDA	78.77M	74.74M	25.12M	48.00M	24.27M
Net Income	59.51M	43.89M	11.23M	31.18M	15.37M
Balance Sheet
Total Assets	6.26B	6.23B	6.01B	3.48B	3.46B
Cash, Cash Equivalents and Short-Term Investments	50.16M	609.06M	482.93M	139.09M	700.60M
Total Debt	111.11M	135.56M	85.15M	92.98M	68.61M
Total Liabilities	5.67B	5.69B	5.50B	3.11B	3.11B
Stockholders Equity	589.87M	541.07M	511.13M	364.29M	350.69M
Cash Flow
Free Cash Flow	17.86M	41.66M	16.76M	50.23M	-10.95M
Operating Cash Flow	17.86M	46.89M	22.71M	52.65M	-7.50M
Investing Cash Flow	191.00K	-134.54M	172.31M	-581.57M	38.19M
Financing Cash Flow	-1.65M	175.09M	121.89M	811.00K	366.01M

Shore Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHBI, the sentiment is Neutral. The current price of 18.61 is below the 20-day moving average (MA) of 19.57, below the 50-day MA of 18.75, and above the 200-day MA of 16.70, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHBI.

Shore Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCAL	72 Outperform	$593.77M	9.70	11.93%	―	61.29%	―
WASH	70 Outperform	$654.97M	10.85	10.02%	7.17%	-27.82%	-159.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHBI	64 Neutral	$621.91M	9.30	10.25%	2.66%	6.01%	38.05%
ALRS	61 Neutral	$619.44M	-4.33	11.37%	3.71%	42.22%	1207.84%

Shore Bancshares Corporate Events

Shore Bancshares Highlights Q4 2025 Performance to Investors

On December 31, 2025, Shore Bancshares, Inc. released an investor presentation outlining its financial position and investment profile, including fourth-quarter 2025 metrics such as earnings per diluted share of $0.48, a return on average tangible common equity of 14.10% and a return on average assets of 1.02%. The materials, furnished to accompany potential meetings with investors and analysts rather than as a formal securities filing, emphasize the bank’s strong regional footprint, notable noninterest deposit base and use of both GAAP and non-GAAP financial measures, underscoring its bid to highlight operational performance and growth prospects to the market while clarifying associated regulatory and disclosure limitations.

The most recent analyst rating on (SHBI) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

Shore Bancshares Sets 2026 Virtual Annual Stockholders Meeting

Shore Bancshares, Inc. has scheduled its 2026 Annual Meeting of Stockholders to be held on May 20, 2026, at 9:00 a.m. Eastern Time in a virtual-only format. The decision to conduct the meeting exclusively online underscores the company’s continued reliance on digital participation for shareholder governance activities.

The most recent analyst rating on (SHBI) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

Shore Bancshares Announces Executive Change in Severance Plan

On December 17, 2025, Shore Bancshares, Inc. announced that its top executives, including the CEO, CFO, and COO, became participants in a newly consolidated Change in Control Severance Plan. This plan aims to ensure the continued dedication of key personnel during potential changes in control by outlining benefits and restrictive covenants in the event of a Qualifying Termination, including severance multipliers and health coverage compensation. The initiative reflects a strategic effort to maintain stable leadership and protect the organization’s operational integrity during transitional periods.

The most recent analyst rating on (SHBI) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.