NasdaqGS:CBNK

Stock Analysis Report

Executive Summary

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A.

Rewards

Trading at 14.7% below its fair value

Earnings are forecast to grow 9.83% per year

Earnings grew by 77.2% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Bank of Utica

OTCPK:BKUT

Share Price & News

How has Capital Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBNK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

CBNK

-0.08%

US Banks

2.0%

US Market


1 Year Return

23.1%

CBNK

15.5%

US Banks

23.6%

US Market

Return vs Industry: CBNK exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: CBNK matched the US Market which returned 24.4% over the past year.


Shareholder returns

CBNKIndustryMarket
7 Day-3.0%-0.08%2.0%
30 Day-2.6%-1.6%3.9%
90 Day6.7%9.2%12.0%
1 Year23.1%23.1%18.9%15.5%26.2%23.6%
3 Yearn/a34.6%25.1%53.2%43.3%
5 Yearn/a86.1%65.2%75.7%56.3%

Price Volatility Vs. Market

How volatile is Capital Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Capital Bancorp undervalued compared to its fair value and its price relative to the market?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBNK ($14.78) is trading below our estimate of fair value ($17.32)

Significantly Below Fair Value: CBNK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CBNK is poor value based on its PE Ratio (13.2x) compared to the Banks industry average (12.8x).

PE vs Market: CBNK is good value based on its PE Ratio (13.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CBNK is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CBNK is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Capital Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBNK's forecast earnings growth (9.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CBNK's earnings (9.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CBNK's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBNK's revenue (11% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CBNK's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBNK's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Capital Bancorp performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBNK has a high level of non-cash earnings.

Growing Profit Margin: CBNK's current net profit margins (18.5%) are higher than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: CBNK's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: CBNK's earnings growth over the past year (77.2%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: CBNK earnings growth over the past year (77.2%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: CBNK's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capital Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CBNK has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBNK's debt is covered by short term assets (assets are 2.5x debt).


Financial Institutions Analysis

Asset Level: CBNK's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CBNK has a sufficient allowance for bad loans.

Low Risk Liabilities: CBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBNK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBNK's loans are broadly funded by customer deposits.

Level of Bad Loans: CBNK has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

What is Capital Bancorp's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CBNK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CBNK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CBNK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CBNK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CBNK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Capital Bancorp's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average board tenure


CEO

Ed Barry (50yo)

7.3yrs

Tenure

US$764,218

Compensation

Mr. Edward F. Barry, also known as Ed, is Chief Executive Officer of Capital Bancorp, Inc. and Capital Bank, National Association since September 2012 and serves as Director of Capital Bancorp, Inc. since  ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD764.22K) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: CBNK's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: CBNK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$281,89912 Dec 19
Kathleen Curtis
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Chief Risk & Compliance Officer
Shares20,064
Max PriceUS$14.05
SellUS$140,40011 Dec 19
Kathleen Curtis
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Chief Risk & Compliance Officer
Shares10,000
Max PriceUS$14.04
SellUS$57,60021 Nov 19
Michael Burke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$14.40
SellUS$177,17425 Oct 19
Nick Bryan
EntityIndividual
Shares13,317
Max PriceUS$13.81
BuyUS$6,07614 Aug 19
Michael Burke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$12.20
SellUS$47,56014 Jun 19
Kathleen Yamada
EntityIndividual
Shares4,000
Max PriceUS$11.89
SellUS$178,50022 May 19
Montrose Lending Group, Llc
EntityCompany
Shares15,000
Max PriceUS$11.90
BuyUS$1,13319 Mar 19
C. Brannan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$11.35

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.2%.


Management Team

  • Alan Jackson (57yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$476.37k
  • Ed Barry (50yo)

    CEO & Director

    • Tenure: 7.3yrs
    • Compensation: US$764.22k
  • Kathy Curtis (72yo)

    Executive VP & Chief Risk & Compliance Officer


    Board Members

    • Deborah Salzberg (65yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$100.94k
    • Stephen Ashman (70yo)

      Independent Director

      • Compensation: US$253.00k
    • Joshua Bernstein (56yo)

      Independent Director

      • Tenure: 8yrs
      • Compensation: US$109.37k
    • Michael Burke (69yo)

      Independent Director

      • Tenure: 3yrs
      • Compensation: US$111.28k
    • C. Brannan (61yo)

      Independent Director

      • Tenure: 1.1yrs
      • Compensation: US$5.69k
    • Ed Barry (50yo)

      CEO & Director

      • Tenure: 7.3yrs
      • Compensation: US$764.22k
    • Scot Browning (57yo)

      Director

      • Tenure: 18yrs
      • Compensation: US$528.12k
    • Randall Levitt (65yo)

      Independent Director

      • Tenure: 8yrs
      • Compensation: US$135.40k
    • Steven Schwartz (65yo)

      Independent Chairman of the Board

      • Compensation: US$155.19k
    • James Whalen (57yo)

      Director

      • Tenure: 19yrs
      • Compensation: US$168.77k

    Company Information

    Capital Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Capital Bancorp, Inc.
    • Ticker: CBNK
    • Exchange: NasdaqGS
    • Founded: 1998
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$199.410m
    • Shares outstanding: 13.81m
    • Website: https://capitalbankmd.com

    Number of Employees


    Location

    • Capital Bancorp, Inc.
    • 2275 Research Boulevard
    • Suite 600
    • Rockville
    • Maryland
    • 20850
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CBNKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2018

    Biography

    Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various commercial banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. The company offers a range of deposit products and services, including various checking and savings accounts, certificates of deposit, money market accounts, debit cards, remote deposit capture services, online and mobile banking services, e-statements, and bank-by-mail and direct deposit services, as well as business accounts, and cash and treasury management services. It also provides lending services, such as residential and commercial real estate loans, construction loans, commercial business loans, and credit card lines, as well as loans to individuals comprising secured and unsecured installment and term loans, car loans, and boat loans. In addition, the company originates residential mortgages for sale in the secondary market; and offers short-term secured real estate financing services. It operates through five commercial bank branches, four mortgage offices, one loan production office, a limited service branch, corporate offices, and operations facilities in the greater Washington, D.C. and Baltimore, Maryland markets. The company was incorporated in 1998 and is headquartered in Rockville, Maryland. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 00:49
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.