Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $552.01M
• Dividend Yield: 2.89%
• Average Volume (3M): 165.04K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.11
• Revenue Growth: 15.26%
• EPS Growth: 160.27%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 33,374,264
• 10 Day Avg. Volume: 202,213
• 30 Day Avg. Volume: 165,045
• PEG Ratio: 0.83
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.11
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: 1.74
• 1Y Price Target: $17.75
• Price Target Upside: 7.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $18.00 ▲(8.83%Upside)

Shore Bancshares is well-positioned with strong financial performance and positive technical indicators. The recent appointment of a new CFO is a strategic move expected to bolster future growth. While the stock is nearing overbought levels, its attractive valuation and dividend yield make it a compelling investment.

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 from loans and investments, as well as non-interest income from fees and service charges associated with its banking products. The company's key revenue streams include interest from commercial and consumer loans, mortgage loan originations, and investment securities. Non-interest income is derived from service fees on deposit accounts, transaction fees, and trust and investment management services. The company's earnings are also influenced by its prudent management of interest rate spreads, strategic geographic presence, and customer relationships. Furthermore, partnerships with local businesses and community organizations play a significant role in expanding its customer base and enhancing its revenue potential.

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	122.46M	77.63M	63.35M
Gross Profit	237.42M	201.70M	128.70M	124.39M	77.63M	63.35M
EBITDA	54.78M	0.00	0.00	0.00	0.00	0.00
Net Income	49.47M	43.89M	11.23M	31.18M	15.37M	15.73M
Balance Sheet
Total Assets	1.49B	6.23B	6.01B	3.48B	3.46B	1.93B
Cash, Cash Equivalents and Short-Term Investments	18.91M	44.01M	482.93M	139.09M	700.60M	326.49M
Total Debt	49.49M	135.56M	85.15M	92.98M	64.46M	29.30M
Total Liabilities	1.30B	5.69B	5.50B	3.11B	3.11B	1.74B
Stockholders Equity	187.08M	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: Positive
• Last Price: 16.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 16.54 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 14.74, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 91.07 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
SHBI	76 Outperform	$552.01M	11.14	9.27%	2.89%	15.26%	160.27%
UNTY	71 Outperform	$522.72M	12.22	15.17%	1.07%	6.99%	12.46%
Sector *	67 Neutral	$16.89B	11.79	9.73%	3.75%	11.97%	-8.33%
ACNB	67 Neutral	$459.79M	15.10	7.44%	3.04%	22.16%	-15.57%
BCAL	62 Neutral	$532.54M	36.99	4.21%	―	60.34%	-62.91%
HONE	58 Neutral	$521.64M	19.43	4.44%	2.93%	6.65%	67.14%
FFWM	52 Neutral	$452.30M	―	-8.68%	0.18%	3.61%	65.61%

Shore Bancshares Corporate Events

Shore Bancshares Shareholders Approve Key Proposals at Meeting

At its recent Annual Meeting, Shore Bancshares, Inc. shareholders approved several key proposals, including the election of four Class I directors for a term ending in 2028, the adoption of the 2025 Equity Incentive Plan, and the 2025 Employee Stock Purchase Plan. Additionally, they ratified Crowe LLP as the independent public accounting firm for the fiscal year ending December 31, 2025, and approved a non-binding advisory resolution on executive compensation. These approvals reflect the company’s strategic focus on governance, employee incentives, and financial oversight.

The most recent analyst rating on (SHBI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

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.