Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $482.59M
• Dividend Yield: 3.3%
• Average Volume (3M): 132.84K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.09
• Revenue Growth: 15.26%
• EPS Growth: 160.27%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 33,374,264
• 10 Day Avg. Volume: 104,521
• 30 Day Avg. Volume: 132,839
• PEG Ratio: 0.82
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.00
• 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: $17.75
• Price Target Upside: 23.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ―

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. 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

Shore Bancshares demonstrates a solid financial standing with strong profitability, stable balance sheet metrics, and good liquidity. Although revenue fluctuations and increasing liabilities pose risks, the company maintains healthy margins and returns on equity.

Income Statement

Shore Bancshares has shown a strong performance in its income statement. The gross profit margin is robust, and the net profit margin is healthy, reflecting effective cost management and profitability. Revenue growth is evident, although it has been inconsistent, showing fluctuations over the past periods, particularly with a significant drop in revenue from 2024 to TTM 2025.

Balance Sheet

The balance sheet indicates a stable financial position, with a reasonable debt-to-equity ratio suggesting moderate leverage. Return on equity is healthy, showing effective use of equity capital. The equity ratio is solid, highlighting a strong equity base relative to assets, although the increasing liabilities over the years pose a risk.

Cash Flow

The cash flow statement presents a positive outlook, with a notable increase in operating cash flow. Free cash flow has grown significantly, indicating good liquidity. However, the free cash flow to net income ratio shows variability, and the company's reliance on financing activities for cash flow might pose a sustainability risk.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
206.00M	295.34M	128.70M	124.39M	77.63M	63.35M
	Gross Profit
237.42M	201.70M	128.70M	124.39M	77.63M	63.35M
	EBIT
55.49M	289.50M	0.00	54.68M	21.18M	21.05M
	EBITDA
54.78M	0.00	0.00	-5.58M	-10.28M	-1.07M
	Net Income Common Stockholders
49.47M	43.89M	11.23M	31.18M	15.37M	15.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
389.01M	44.01M	482.93M	139.09M	700.60M	326.49M
	Total Assets
6.18B	6.23B	6.01B	3.48B	3.46B	1.93B
	Total Debt
123.98M	135.56M	85.15M	92.98M	64.46M	29.30M
	Net Debt
-265.03M	-324.29M	-287.26M	37.48M	-519.15M	-157.61M
	Total Liabilities
5.62B	5.69B	5.50B	3.11B	3.11B	1.74B
	Stockholders Equity
552.47M	541.07M	511.13M	364.29M	350.69M	195.02M
Cash Flow		Free Cash Flow
80.89M	41.66M	16.76M	50.23M	-10.95M	16.05M
	Operating Cash Flow
84.39M	46.89M	22.71M	52.65M	-7.50M	18.43M
	Investing Cash Flow
-80.39M	-134.54M	172.31M	-581.57M	38.19M	-280.08M
	Financing Cash Flow
381.18M	175.09M	121.89M	811.00K	366.01M	353.60M

Shore Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 14.34 is below the 20-day moving average (MA) of 14.43, above the 50-day MA of 13.53, and below the 200-day MA of 14.44, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 18.78 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
UNTY	77 Outperform	$434.95M	10.17	15.17%	1.23%	6.99%	12.46%
SHBI	74 Outperform	$482.59M	9.74	9.27%	3.30%	15.26%	160.27%
ACNB	74 Outperform	$444.92M	14.61	7.44%	2.98%	22.17%	-15.57%
BCAL	70 Outperform	$482.95M	33.54	4.21%	―	60.34%	-62.91%
HONE	66 Neutral	$486.93M	18.13	4.44%	2.92%	5.42%	67.14%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
FFWM	57 Neutral	$425.94M	―	-8.68%	0.19%	3.61%	65.61%

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.