Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $493.03M
• Dividend Yield: 1.44%
• Average Volume (3M): 49.21K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.69
• Revenue Growth: 22.14%
• EPS Growth: 12.06%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.89
• Shares Outstanding: 16,583,542
• 10 Day Avg. Volume: 45,313
• 30 Day Avg. Volume: 49,208
• PEG Ratio: -0.78
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 12.68
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: 9.38
• 1Y Price Target: $35.00
• Price Target Upside: 19.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $32.00 ▲(9.40% Upside)

Capital Bancorp's strong financial performance, characterized by robust revenue growth and profitability, is a key strength. However, technical indicators suggest a bearish trend, and cash flow management needs improvement. The valuation is reasonable, providing a balanced investment case.

Capital Bancorp Business Overview & Revenue Model

Company Description

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products and services, including checking and savings, time, interest bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It originates residential mortgages and offers residential and commercial real estate, construction, and commercial business loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. It operates through four commercial bank branches, four mortgage offices, and one loan production office. The company was founded in 1974 and is headquartered in Rockville, Maryland.

How the Company Makes Money

Capital Bancorp generates its revenue primarily through interest income earned on loans and investments, as well as non-interest income from various banking services. The key revenue streams include interest from commercial and consumer loans, mortgage loans, and fees from deposit accounts and other banking services. Additionally, the company may earn fees from treasury management services, which involve managing cash flow and liquidity for business clients. Partnerships with local businesses and community organizations enhance its client base and can lead to increased loan origination and deposit growth, further contributing to its earnings. Economic factors such as interest rates and local market conditions also play a significant role in the company's profitability.

Capital Bancorp Financial Statement Overview

Summary

Capital Bancorp exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and the company effectively utilizes equity to generate returns. However, declining free cash flow growth and a low operating cash flow to net income ratio highlight areas for improvement in cash management.

Income Statement

Capital Bancorp has demonstrated strong revenue growth with a TTM increase of 7.3%, supported by solid gross and net profit margins of 70.5% and 15.3%, respectively. The EBIT and EBITDA margins are healthy at 18.7% and 19.7%, indicating efficient operational management. However, the slight decline in EBIT compared to the previous year suggests a need for careful cost management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.09, reflecting conservative leverage practices. The return on equity is commendable at 12.5%, showcasing effective use of shareholder funds. However, the equity ratio is not explicitly provided, which could offer further insights into asset management.

Cash Flow

While Capital Bancorp's free cash flow to net income ratio is strong at 95.3%, indicating good cash generation relative to earnings, the free cash flow growth rate has declined by 28.8% TTM, suggesting potential challenges in sustaining cash flow levels. The operating cash flow to net income ratio is relatively low, which may indicate less cash being generated from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.41M	242.28M	206.55M	180.02M	173.88M	147.40M
Gross Profit	200.10M	165.62M	155.36M	163.35M	163.97M	122.97M
EBITDA	61.47M	44.05M	46.70M	55.67M	55.08M	37.03M
Net Income	43.27M	30.97M	35.87M	41.80M	39.98M	25.82M
Balance Sheet
Total Assets	3.39B	3.21B	2.23B	2.12B	2.06B	1.88B
Cash, Cash Equivalents and Short-Term Investments	255.77M	307.96M	138.17M	312.21M	364.19M	244.32M
Total Debt	34.06M	34.06M	49.06M	129.06M	34.06M	36.02M
Total Liabilities	3.01B	2.85B	1.97B	1.90B	1.86B	1.72B
Stockholders Equity	380.04M	355.14M	254.86M	224.01M	197.90M	159.31M
Cash Flow
Free Cash Flow	41.73M	32.77M	45.26M	49.84M	132.05M	5.19M
Operating Cash Flow	43.81M	34.93M	47.42M	51.39M	132.08M	5.46M
Investing Cash Flow	-268.17M	-269.95M	-130.84M	-198.46M	-238.23M	-385.51M
Financing Cash Flow	362.45M	386.39M	56.97M	44.09M	142.64M	412.14M

Capital Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 29.25 is below the 20-day moving average (MA) of 29.83, below the 50-day MA of 31.91, and below the 200-day MA of 31.09, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBNK.

Capital Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBX	―	$532.68M	11.45	12.88%	―	9.12%	45.83%
GNTY	―	―	―	―	―	1.61%	38.81%
BCAL	―	$564.18M	19.88	7.44%	―	88.14%	0.65%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBNK	―	$493.03M	11.11	13.36%	1.44%	22.14%	12.06%
FMNB	―	$511.99M	9.42	12.00%	5.07%	3.93%	17.27%
FISI	―	$582.75M	-12.18	-12.05%	4.18%	-28.00%	-174.60%

Capital Bancorp Corporate Events

Capital Bancorp Declares Dividend Amid Strong Q3 Growth

On October 24, 2025, Capital Bancorp‘s Board of Directors declared a $0.12 per share dividend, payable on November 26, 2025, to stockholders of record on November 10, 2025. For the third quarter of 2025, the company reported a net income of $15.1 million, or $0.89 per share, reflecting continued strong growth in loans and book value. The acquisition of IFH contributed significantly to this growth, with gross loans increasing by $82.2 million during the quarter. Despite a decrease in total deposits, the company saw substantial year-over-year growth due to the acquisition. The company also reported a robust return on equity and tangible book value, with a focus on strategic investments in technology and infrastructure to ensure long-term superior returns for shareholders.

The most recent analyst rating on (CBNK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp CFO Resignation Announced

On October 10, 2025, Capital Bancorp‘s CFO, Dominic C. Canuso, announced his resignation effective October 27, 2025, to pursue another opportunity, with no disagreements with the company. Connie Egan, the Chief Accounting Officer, will assume the role of Principal Financial and Accounting Officer starting October 28, 2025, while a nationwide search for a permanent replacement is conducted.

The most recent analyst rating on (CBNK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.

Capital Bancorp Reports Strong 2Q 2025 Earnings

Capital Bancorp, Inc., a financial holding company for Capital Bank, N.A., operates in the banking sector, focusing on commercial banking, credit cards, and mortgage loans. The company recently released its second-quarter 2025 earnings report, highlighting a net income of $13.1 million and an EPS of $0.78, with a return on average assets of 1.60%. Key financial metrics showed growth in loans and deposits, with gross loans increasing by $61.4 million and total deposits rising by $49.4 million compared to the previous quarter. The acquisition of IFH contributed significantly to the company’s growth, enhancing both loan and deposit volumes. The company’s net interest income increased by 3.5% from the first quarter of 2025, driven by strong balance sheet growth and the IFH acquisition. Despite a slight decrease in net interest margin, the company maintained a robust fee revenue stream, accounting for 21.6% of total revenue. Looking ahead, Capital Bancorp remains optimistic about its strategic growth initiatives and the integration of IFH, aiming for continued profitability and shareholder value enhancement.

Capital Bancorp Increases Dividend Amid Strong Q2 Performance

On July 25, 2025, Capital Bancorp‘s Board of Directors declared a $0.12 per share dividend, marking a 20% increase from the previous quarter, payable on August 27, 2025. The company reported strong financial performance for the second quarter of 2025, with net income of $13.1 million and a return on average assets of 1.60%. The acquisition of IFH contributed significantly to the growth in loans and deposits, enhancing the company’s profitability and market position. Despite a slight decrease in earnings from the previous quarter, Capital Bancorp remains well-positioned for future growth, as evidenced by its strategic initiatives and consistent dividend increases.

The most recent analyst rating on (CBNK) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Capital Bancorp stock, see the CBNK Stock Forecast page.