Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $468.22M
• Dividend Yield: 1.34%
• Average Volume (3M): 49.56K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.65
• Revenue Growth: 14.04%
• EPS Growth: -16.49%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 2.13
• Shares Outstanding: 16,656,649
• 10 Day Avg. Volume: 46,472
• 30 Day Avg. Volume: 49,557
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.65
• Price to Cash Flow (P/CF): 4.60
• P/FCF Ratio: 2.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: 28.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Capital Bancorp shows strong revenue growth and a solid equity position with no debt, which enhances financial stability. However, declining profitability margins and operating cash flow suggest challenges in maintaining liquidity, impacting the financial performance score. Technical indicators are neutral to bearish, indicating potential caution for investors. The valuation is fair, aligning with the company's stable financial position, but doesn't offer a compelling advantage. Overall, while the company is financially stable, the stock may face headwinds due to profitability and cash flow concerns.

Capital Bancorp Business Overview & Revenue Model

Company Description

Capital Bancorp (CBNK) is a financial holding company that operates primarily in the banking sector. It offers a range of financial services, including commercial and consumer banking, through its network of branch locations. The company is committed to providing tailored financial solutions to meet the needs of individuals, small to medium-sized businesses, and commercial entities. Its core services include lending, deposit products, and various financial advisory services.

How the Company Makes Money

Capital Bancorp makes money primarily through interest income generated from its lending activities. This includes personal, mortgage, and commercial loans. The company also earns revenue from fees and service charges related to its banking products, such as account maintenance fees, transaction fees, and overdraft charges. Additionally, Capital Bancorp benefits from non-interest income through financial advisory services and other banking-related services. Key factors contributing to its earnings include its strategic branch network, customer base, and partnerships with financial service providers that enhance its product offerings.

Capital Bancorp Financial Statement Overview

Summary

Capital Bancorp's financial statements reflect robust revenue growth and a strong equity position with no debt, reducing financial risk. However, declining net profit margins and reduced operating cash flow indicate challenges in maintaining profitability and liquidity. The overall financial health is positive, with significant equity and revenue growth, but attention to managing expenses and cash flow is essential for sustained performance.

Income Statement

Capital Bancorp has shown a steady increase in revenue over the years with a notable 18.55% growth from 2023 to 2024. The gross profit margin remained constant at 100% due to the nature of the banking industry. However, net profit margin declined from 22.84% in 2023 to 16.64% in 2024, indicating increased expenses relative to revenue. The absence of EBIT and EBITDA data for 2024 limits comprehensive margin analysis but prior years showed healthy EBIT margins. Overall, the income statement reflects strong revenue growth but declining profitability.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of 40.08% in 2024, up from 11.45% in 2023. The company has no debt as of 2024, substantially improving its debt-to-equity ratio from previous years, which reduces financial risk. Return on equity decreased to 3.11% in 2024 from 14.07% in 2023, suggesting lower profitability relative to shareholders' equity. The financial stability is enhanced by a substantial increase in stockholders' equity.

Cash Flow

Operating cash flow decreased significantly from $47.42 million in 2023 to $19.83 million in 2024, impacting free cash flow, which also declined. Free cash flow to net income ratio improved to 0.64 in 2024 from 1.26 in 2023, indicating better cash generation relative to net income. However, the decrease in operating cash flow suggests potential liquidity challenges. Overall, cash flow management appears stable but with potential risks due to declining cash inflows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
186.16M	156.99M	169.98M	167.33M	145.13M
	Gross Profit
186.16M	156.99M	169.98M	167.33M	145.13M
	EBIT
-102.60M	46.23M	64.27M	53.88M	35.14M
	EBITDA
0.00	46.70M	55.67M	55.08M	37.03M
	Net Income Common Stockholders
30.97M	35.87M	41.80M	39.98M	25.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.91M	245.47M	312.21M	364.19M	244.32M
	Total Assets
2.49B	2.23B	2.12B	2.06B	1.88B
	Total Debt
34.06M	49.06M	129.06M	34.06M	36.02M
	Net Debt
-171.21M	-4.50M	69.33M	-145.68M	-108.52M
	Total Liabilities
2.85B	1.97B	1.90B	1.86B	1.72B
	Stockholders Equity
996.82M	254.86M	224.01M	197.90M	159.31M
Cash Flow		Free Cash Flow
32.77M	45.26M	49.84M	132.05M	5.19M
	Operating Cash Flow
34.93M	47.42M	51.39M	132.08M	5.46M
	Investing Cash Flow
-12.37M	-130.84M	-198.46M	-238.23M	-385.51M
	Financing Cash Flow
-5.60M	56.97M	44.09M	142.64M	412.14M

Capital Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBNK, the sentiment is Positive. The current price of 28.11 is above the 20-day moving average (MA) of 27.35, below the 50-day MA of 28.70, and above the 200-day MA of 27.08, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 64.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBNK.

Capital Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBTC	68 Neutral	$456.75M	11.22	11.31%	2.65%	13.97%	12.00%
CCNE	67 Neutral	$439.33M	8.97	8.84%	3.23%	8.67%	―
CBNK	66 Neutral	$468.22M	13.43	10.15%	1.34%	14.04%	-16.49%
Sector *	63 Neutral	$12.32B	9.52	7.97%	79.23%	12.77%	-4.57%
PGC	61 Neutral	$486.71M	15.35	5.31%	0.74%	6.72%	-17.45%
NPB	54 Neutral	$426.01M	―		―	―	―
FISI	51 Neutral	$481.83M	8.52	-8.14%	5.11%	-20.47%	-177.92%

Capital Bancorp Corporate Events

Capital Bancorp Highlights Q3 2024 Financial Performance

Capital Bancorp, Inc. is presenting an updated investor presentation for Q3 2024, highlighting its financial performance and strategic initiatives. The company’s diversified business model and focus on commercial banking and government-guaranteed lending continue to drive growth in assets and profitability. Capital Bank’s recent acquisition of Integrated Financial has strengthened its market position, and the firm remains vigilant about external factors such as economic conditions and regulatory changes. Despite challenges, Capital Bancorp is committed to enhancing shareholder value and navigating market fluctuations effectively.