NasdaqGS:SHBI

Stock Analysis Report

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Executive Summary

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial banking products and services to individuals, businesses, and other organizations.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Shore Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.5%

SHBI

8.8%

US Banks

2.7%

US Market


1 Year Return

-34.9%

SHBI

-19.3%

US Banks

9.1%

US Market

Return vs Industry: SHBI underperformed the US Banks industry which returned -18.2% over the past year.

Return vs Market: SHBI underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

SHBIIndustryMarket
7 Day18.5%8.8%2.7%
30 Day-9.9%-0.7%4.5%
90 Day-35.7%-19.4%2.3%
1 Year-32.5%-34.9%-16.6%-19.3%11.5%9.1%
3 Year-35.6%-40.1%-8.0%-15.2%30.6%22.0%
5 Year18.0%7.3%12.2%-1.1%57.2%39.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shore Bancshares undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHBI ($10) is trading below our estimate of fair value ($14.3)

Significantly Below Fair Value: SHBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SHBI is good value based on its PE Ratio (8.1x) compared to the Banks industry average (9.8x).

PE vs Market: SHBI is good value based on its PE Ratio (8.1x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: SHBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SHBI is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Shore Bancshares forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHBI's earnings are forecast to decline over the next 3 years (-40.1% per year).

Earnings vs Market: SHBI's earnings are forecast to decline over the next 3 years (-40.1% per year).

High Growth Earnings: SHBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHBI's revenue is expected to decline over the next 3 years (-7.5% per year).

High Growth Revenue: SHBI's revenue is forecast to decline over the next 3 years (-7.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SHBI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shore Bancshares performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHBI has high quality earnings.

Growing Profit Margin: SHBI's current net profit margins (26.2%) are lower than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: SHBI's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: SHBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SHBI had negative earnings growth (-3.4%) over the past year, making it difficult to compare to the Banks industry average (2.9%).


Return on Equity

High ROE: SHBI's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Shore Bancshares'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


Financial Institutions Analysis

Asset Level: SHBI's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: SHBI has a low allowance for bad loans (85%).

Low Risk Liabilities: 98% of SHBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: SHBI has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: SHBI's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: SHBI has an appropriate level of bad loans (1%).


Next Steps

Dividend

What is Shore Bancshares's current dividend yield, its reliability and sustainability?

4.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHBI's dividend (4.8%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: SHBI's dividend (4.8%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

Stable Dividend: SHBI's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHBI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), SHBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Scott Beatty (66yo)

6.92yrs

Tenure

US$739,534

Compensation

Mr. Lloyd L. Beatty Jr., also known as Scott, has served as the Shore Bancshares Inc. and Shore United Bank's President and Chief Executive Officer ("CEO") since June 2013 and as a director of the Shore Ba ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD739.53K) is about average for companies of similar size in the US market ($USD587.77K).

Compensation vs Earnings: Scott's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lloyd Beatty
President6.92yrsUS$739.53k0.78% $971.8k
Edward Allen
Executive VP & CFO4yrsUS$345.80k0.11% $131.9k
Donna Stevens
Executive VP & COO4.83yrsUS$354.54k0.075% $93.5k
W. Morse
Executive VP12.33yrsno data0.10% $131.0k

5.9yrs

Average Tenure

61.5yo

Average Age

Experienced Management: SHBI's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lloyd Beatty
President6.92yrsUS$739.53k0.78% $971.8k
Blenda Armistead
Independent Director18.33yrsUS$44.50k0.16% $203.7k
Frank Mason
Independent Chairman of the Board3.33yrsUS$57.00k0.23% $287.2k
James Judge
Independent Director11.08yrsUS$47.00k0.10% $128.7k
David Bates
Independent Director8.08yrsUS$44.50k0.11% $136.7k
David Moore
Independent Director6.08yrsUS$47.00k0.052% $65.3k
Clyde Kelly
Independent Director4.08yrsUS$44.50k0.076% $95.3k
Jeffrey Thompson
Independent Director4.08yrsUS$47.00k0.11% $134.8k
R. Clemmer
Independent Director4.08yrsUS$47.00k0.068% $84.5k

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: SHBI's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SHBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shore Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Shore Bancshares, Inc.
  • 28969 Information Lane
  • Easton
  • Maryland
  • 21601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975

Biography

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial banking products and services to individuals, businesses, and other organizations. It offers various deposit products, including checking, savings, 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 comprising home equity, automobile, installment, home improvement, and personal lines of credit. In addition, it offers safe deposit boxes; debit and credit cards; direct deposit of payroll; merchant credit card clearing services; telephone, mobile, and Internet banking services; and automatic teller machine (ATM) services. Further, the company provides non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. It operates 21 full service branches, 23 ATMs, 2 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne’s County, Caroline County, Talbot County, Worcester, and Dorchester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 02:53
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.