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Shore Bancshares Inc. (SHBI) Fundamental Analysis & AI Grade 2026

SHBI Nasdaq National Commercial Banks MD CIK: 0001035092
Updated This Month • Analysis: May 7, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
55% Confidence
N/A
C
55% Conf
Pending
Analysis scheduled

📊 SHBI Key Takeaways

Revenue: $5.4M
Net Margin: 317.1%
Free Cash Flow: $30.5M
Current Ratio: N/A
Debt/Equity: 0.15x
EPS: $0.51
AI Grade: C with 55% confidence
Shore Bancshares Inc. (SHBI) receives a C fundamental grade with 55% confidence from our AI analysis based on SEC 10-K filings. With revenue of $5.4M, net profit margin of 317.1%, and return on equity (ROE) of 2.8%, Shore Bancshares Inc. demonstrates mixed fundamentals in the Finance sector. Below is our complete SHBI stock analysis for 2026.

Is Shore Bancshares Inc. (SHBI) a Good Investment?

Claude

Shore Bancshares exhibits critically weak profitability metrics with 2.8% ROE and 0.3% ROA, compounded by interest coverage of only 0.8x, indicating the bank's operating income cannot cover interest expenses. While the balance sheet shows adequate capitalization (9.7% equity ratio) and low debt leverage, underlying asset quality concerns are evident from the poor returns on capital, suggesting potential loan portfolio deterioration or operational inefficiencies.

Shore Bancshares Inc. Key Strengths (SHBI)

Claude
  • + Strong balance sheet with $6.2B in assets and $602.7M stockholders equity providing capital cushion
  • + Low debt leverage with 0.15x debt-to-equity ratio indicating conservative capital structure
  • + Positive free cash flow generation of $30.5M demonstrates ongoing liquidity

SHBI Stock Risks: Shore Bancshares Inc. Investment Risks

Claude
  • ! Interest coverage ratio of 0.8x is critically low—operating income cannot cover interest expenses, signaling potential financial stress
  • ! Profitability metrics critically weak: 2.8% ROE and 0.3% ROA suggest significant asset quality issues or operational problems
  • ! Revenue data shows severe anomalies (93.3% YoY decline, impossible margin percentages) indicating data reliability concerns that obscure true operational performance

Key Metrics to Watch

Claude
  • * Interest coverage ratio trending above 1.5x (critical near-term indicator)
  • * Return on equity improving toward 8%+ (industry benchmark)
  • * Net interest margin and loan loss provisions (to assess asset quality)

Shore Bancshares Inc. (SHBI) Financial Metrics & Key Ratios

Revenue
$5.4M
Net Income
$17.1M
EPS (Diluted)
$0.51
Free Cash Flow
$30.5M
Total Assets
$6.2B
Cash Position
$340.8M

💡 AI Analyst Insight

The 565.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

SHBI Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 420.4%
Net Margin 317.1%
ROE 2.8%
ROA 0.3%
FCF Margin 565.7%

SHBI vs Finance Sector: How Shore Bancshares Inc. Compares

How Shore Bancshares Inc. compares to Finance sector averages

Net Margin
SHBI 317.1%
vs
Sector Avg 25.0%
SHBI Sector
ROE
SHBI 2.8%
vs
Sector Avg 12.0%
SHBI Sector
Current Ratio
SHBI 0.0x
vs
Sector Avg 1.2x
SHBI Sector
Debt/Equity
SHBI 0.1x
vs
Sector Avg 2.0x
SHBI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Shore Bancshares Inc. Stock Overvalued? SHBI Valuation Analysis 2026

Based on fundamental analysis, Shore Bancshares Inc. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
2.8%
Sector avg: 12%
Net Profit Margin
317.1%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.15x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Shore Bancshares Inc. Balance Sheet: SHBI Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.15x
Debt/Assets
90.3%
Interest Coverage
0.76x
Long-term Debt
$89.0M

SHBI Revenue & Earnings Growth: 5-Year Financial Trend

SHBI 5-year financial data: Year 2023: Revenue $18.3M, Net Income $31.2M, EPS $1.57. Year 2024: Revenue $20.9M, Net Income $11.2M, EPS $0.42. Year 2025: Revenue $20.9M, Net Income $11.2M, EPS $0.42.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Shore Bancshares Inc.'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.42 reflects profitable operations.

SHBI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
565.7%
Free cash flow / Revenue

SHBI Quarterly Earnings & Performance

Quarterly financial performance data for Shore Bancshares Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $4.8M $13.8M $0.41
Q3 2025 $4.7M $8.2M $0.34
Q2 2025 $5.3M $8.2M $0.34
Q1 2025 $4.6M $8.2M $0.25
Q3 2024 $4.7M $738.0K $0.03
Q2 2024 $3.7M $4.0M $0.20
Q1 2024 $3.8M $6.5M $0.25
Q3 2023 $4.1M $4.0M $0.17

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Shore Bancshares Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$31.6M
Cash generated from operations
Capital Expenditures
$1.1M
Investment in assets
Dividends Paid
$4.0M
Returned to shareholders

SHBI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Shore Bancshares Inc. (CIK: 0001035092)

📋 Recent SEC Filings

Date Form Document Action
May 26, 2026 4 xslF345X06/wk-form4_1779830456.xml View →
May 26, 2026 4 xslF345X06/wk-form4_1779830430.xml View →
May 26, 2026 4 xslF345X06/wk-form4_1779830411.xml View →
May 26, 2026 4 xslF345X06/wk-form4_1779830394.xml View →
May 26, 2026 4 xslF345X06/wk-form4_1779830377.xml View →

Frequently Asked Questions about SHBI

What is the AI rating for SHBI?

Shore Bancshares Inc. (SHBI) has an AI grade of C with 55% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SHBI's key strengths?

Claude: Strong balance sheet with $6.2B in assets and $602.7M stockholders equity providing capital cushion. Low debt leverage with 0.15x debt-to-equity ratio indicating conservative capital structure.

What are the risks of investing in SHBI?

Claude: Interest coverage ratio of 0.8x is critically low—operating income cannot cover interest expenses, signaling potential financial stress. Profitability metrics critically weak: 2.8% ROE and 0.3% ROA suggest significant asset quality issues or operational problems.

What is SHBI's revenue and growth?

Shore Bancshares Inc. reported revenue of $5.4M.

Does SHBI pay dividends?

Shore Bancshares Inc. pays dividends, with $4.0M distributed to shareholders in the trailing twelve months.

Where can I find SHBI SEC filings?

Official SEC filings for Shore Bancshares Inc. (CIK: 0001035092) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SHBI's EPS?

Shore Bancshares Inc. has a diluted EPS of $0.51.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SHBI's fundamental grade?

Based on our AI fundamental analysis in June 2026, Shore Bancshares Inc. has a C grade with 55% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SHBI stock overvalued or undervalued?

Valuation metrics for SHBI: ROE of 2.8% (sector avg: 12%), net margin of 317.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is SHBI's AI grade for 2026?

Our dual AI analysis gives Shore Bancshares Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is SHBI's free cash flow?

Shore Bancshares Inc.'s operating cash flow is $31.6M, with capital expenditures of $1.1M. FCF margin is 565.7%.

How does SHBI compare to other Finance stocks?

Vs Finance sector averages: Net margin 317.1% (avg: 25%), ROE 2.8% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 7, 2026 | Data as of: 2026-03-31 | Powered by Claude AI