NasdaqGS:SHBI

Stock Analysis Report

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

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

2.4%

SHBI

2.7%

US Banks

0.5%

US Market


1 Year Return

-4.6%

SHBI

2.9%

US Banks

6.8%

US Market

Return vs Industry: SHBI underperformed the US Banks industry which returned 2.9% over the past year.

Return vs Market: SHBI underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

SHBIIndustryMarket
7 Day2.4%2.7%0.5%
30 Day2.7%1.1%-0.8%
90 Day-0.9%2.7%-0.9%
1 Year-2.2%-4.6%5.8%2.9%9.2%6.8%
3 Year32.7%25.7%52.0%41.5%45.6%36.2%
5 Year88.5%76.4%69.2%50.7%63.2%45.4%

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?

12.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHBI ($15.86) is trading above our estimate of fair value ($11.19)

Significantly Below Fair Value: SHBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHBI is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.5x).

PE vs Market: SHBI is good value based on its PE Ratio (12.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SHBI is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: SHBI is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Shore Bancshares forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHBI's forecast earnings growth (2.3% per year) is below the savings rate (2.7%).

Earnings vs Market: SHBI's earnings (2.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: SHBI's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: SHBI's revenue is forecast to decline over the next 3 years (-3.7% 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?

30.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SHBI has become profitable over the past 5 years, growing earnings by 30.1% per year.

Accelerating Growth: SHBI's earnings growth over the past year (37.8%) exceeds its 5-year average (30.1% per year).

Earnings vs Industry: SHBI earnings growth over the past year (37.8%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: SHBI's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: SHBI has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SHBI's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: SHBI's debt is covered by short term assets (assets are 1.121800x debt).


Financial Institutions Analysis

Asset Level: SHBI's level of assets compared to its equity is low.

Allowance for Bad Loans: SHBI has a low allowance for bad loans.

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

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

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

Level of Bad Loans: SHBI has an appropriate level of bad loans (1.21%)


Next Steps

Dividend

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

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SHBI's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SHBI's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (29.2%), 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

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

5.3yrs

Average management tenure


CEO

Scott Beatty (66yo)

6.3yrs

Tenure

US$614,690

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 ($USD614.69K) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

5.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: SHBI's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

64yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Scott Beatty (66yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$614.69k
  • W. Morse (57yo)

    Secretary & General Counsel

    • Tenure: 11.8yrs
  • Ed Allen (71yo)

    Senior VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$316.34k
  • Donna Stevens (56yo)

    Senior VP & COO

    • Tenure: 4.3yrs
    • Compensation: US$317.21k
  • Debra Rich

    VP and Chief Marketing & Project Officer

    • Tenure: 0yrs
  • Timothy Berrigan

    VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Blenda Armistead (67yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$42.00k
  • Scott Beatty (66yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$614.69k
  • Frank Mason (56yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$52.00k
  • James Judge (60yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$42.00k
  • John Wilson (73yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$42.00k
  • David Bates (72yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$42.00k
  • David Moore (54yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$42.00k
  • Clyde Kelly (65yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$42.00k
  • Jeffrey Thompson (63yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$42.00k
  • R. Clemmer (51yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$42.00k

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 of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.