Shore Bancshares (SHBI) AI Stock Analysis

• Market Cap: $569.43M
• Dividend Yield: 2.75%
• Average Volume (3M): 116.07K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.06
• Revenue Growth: 2.66%
• EPS Growth: 128.06%
• Country: US
• Employees: 584
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.46
• Shares Outstanding: 33,417,377
• 10 Day Avg. Volume: 115,110
• 30 Day Avg. Volume: 116,072
• 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: 1.06
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 6.89
• 1Y Price Target: $18.33
• Price Target Upside: 5.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $19.00 ▲(8.88% Upside)

Shore Bancshares scores well due to strong financial performance and positive technical indicators. The stock is undervalued with a solid dividend yield, enhancing its attractiveness. The absence of earnings call data limits further analysis, but the recent dividend declaration underscores financial 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 interest income, which is derived from loans and investments. The company provides various types of loans, including commercial, residential, and consumer loans, and earns interest from the repayment of these loans. Additionally, Shore Bancshares generates non-interest income through fees for services such as account maintenance, transaction fees, and wealth management services. The company may also engage in mortgage origination and processing, contributing further to its revenue. Key partnerships with local businesses and community organizations enhance its customer reach and service offerings, driving deposits and further loan growth. The overall financial health of the company is influenced by interest rates, economic conditions, and the performance of the local economy in its operating regions.

Shore Bancshares Financial Statement Overview

Summary

Shore Bancshares demonstrates a solid financial standing with strong profitability and stable balance sheet metrics. Despite revenue fluctuations, the company maintains good margins and healthy returns on equity. The cash flow position is strengthened by rising free cash flows, although the dependency on financing cash flows should be monitored for long-term stability.

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	336.24M	326.49M	238.42M	136.93M	83.67M	70.43M
Gross Profit	208.21M	196.96M	128.70M	122.46M	77.63M	59.45M
EBITDA	87.94M	74.74M	25.12M	48.00M	24.27M	23.52M
Net Income	53.74M	43.89M	11.23M	31.18M	15.37M	15.73M
Balance Sheet
Total Assets	6.04B	6.23B	6.01B	3.48B	3.46B	1.93B
Cash, Cash Equivalents and Short-Term Investments	54.51M	609.06M	482.93M	139.09M	700.60M	326.49M
Total Debt	135.78M	135.56M	85.15M	92.98M	68.61M	30.35M
Total Liabilities	5.47B	5.69B	5.50B	3.11B	3.11B	1.74B
Stockholders Equity	565.19M	541.07M	511.13M	364.29M	350.69M	195.02M
Cash Flow
Free Cash Flow	49.15M	41.66M	16.76M	50.23M	-10.95M	16.05M
Operating Cash Flow	52.91M	46.89M	22.71M	52.65M	-7.50M	18.43M
Investing Cash Flow	-123.51M	-134.54M	172.31M	-581.57M	38.19M	-280.08M
Financing Cash Flow	116.70M	175.09M	121.89M	811.00K	366.01M	353.60M

Shore Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 17.45 is above the 20-day moving average (MA) of 16.97, above the 50-day MA of 16.33, and above the 200-day MA of 15.10, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 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	75 Outperform	$569.43M	10.58	9.88%	2.75%	2.66%	128.06%
UNTY	75 Outperform	521.22M	10.50	15.79%	1.04%	10.57%	31.14%
BCAL	74 Outperform	559.95M	20.38	5.71%	―	88.14%	0.65%
ACNB	73 Outperform	472.19M	16.72	10.50%	2.87%	32.18%	-26.13%
HONE	69 Neutral	569.69M	20.38	4.55%	2.58%	5.00%	72.45%
FFWM	51 Neutral	480.31M	-4.23	-9.24%	―	-1.29%	-1023.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shore Bancshares Corporate Events

Shore Bancshares Declares Quarterly Cash Dividend

On August 1, 2025, Shore Bancshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share, payable on August 25, 2025, to stockholders of record as of August 11, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may positively impact its market positioning by demonstrating financial stability and shareholder confidence.

Shore Bancshares Releases Investor Presentation June 2025

On June 30, 2025, Shore Bancshares released an investor presentation detailing its financial information for potential meetings with investors and analysts. The presentation, which is not subject to updates or liability under the Securities Exchange Act of 1934, highlights the company’s strategic positioning and market presence, with a strong deposit market share in Maryland. The release underscores the company’s focus on maintaining its competitive edge in the financial services industry, despite the inherent risks and uncertainties outlined in the forward-looking statements.