Capital Bancorp (CBNK) AI Stock Analysis

• Market Cap: $541.95M
• Dividend Yield: 1.27%
• Average Volume (3M): 52.43K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.68
• Revenue Growth: 22.14%
• EPS Growth: 12.06%
• Country: US
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 16,583,542
• 10 Day Avg. Volume: 42,874
• 30 Day Avg. Volume: 52,427
• 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: 1.06
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 10.35
• 1Y Price Target: $35.00
• Price Target Upside: 7.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $36.00 ▲(10.16% Upside)

Capital Bancorp's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and solid profitability metrics. The valuation is reasonable, offering moderate income potential. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial outlook.

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 demonstrates strong financial health with consistent revenue and profit growth, efficient operational management, and robust cash generation. The balance sheet is stable with low leverage, though there is potential to enhance equity financing. The firm exhibits resilience and financial flexibility, positioning well in the regional banking industry.

Income Statement

Capital Bancorp has shown consistent revenue growth, with a notable increase in total revenue from $242 million in 2024 to $263 million in TTM (Trailing-Twelve-Months) 2025, reflecting a revenue growth rate of approximately 8.66%. The gross profit margin remains strong at around 69.82% for TTM 2025, and the net profit margin improved to 14.56% for the same period, indicating efficient cost management. EBIT and EBITDA margins are stable, showcasing good operational efficiency in a competitive industry.

Balance Sheet

The balance sheet reflects a sound financial position with a low debt-to-equity ratio of approximately 0.09 in TTM 2025, suggesting conservative leverage. The return on equity (ROE) is robust at 10.37%, indicating effective utilization of shareholder funds. However, the equity ratio is moderate at 11.03%, suggesting a moderate reliance on equity financing. Overall, the balance sheet shows stability with some room for improvement in equity financing.

Cash Flow

Capital Bancorp's cash flow is strong, with a significant increase in free cash flow from $32.77 million in 2024 to $58.57 million in TTM 2025, representing a growth rate of 78.70%. The operating cash flow to net income ratio is favorable at 1.59, indicating that operating cash flow comfortably covers net income. The free cash flow to net income ratio is also healthy at 1.53, highlighting efficient cash management and the ability to generate cash after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.46M	242.28M	206.55M	180.02M	173.88M	147.40M
Gross Profit	199.13M	165.62M	155.36M	163.35M	163.97M	122.97M
EBITDA	55.71M	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: 32.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 32.68 is below the 20-day moving average (MA) of 33.75, below the 50-day MA of 33.36, and above the 200-day MA of 30.90, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 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
CCNE	75 Outperform	770.78M	11.21	8.94%	2.75%	7.40%	2.01%
PGC	74 Outperform	512.86M	16.43	5.14%	0.69%	7.35%	-2.65%
CBNK	71 Outperform	$541.95M	12.50	13.36%	1.27%	22.14%	12.06%
NPB	70 Outperform	635.06M	―	11.93%	0.27%	0.00%	0.00%
FISI	60 Neutral	543.70M	-10.51	-3.07%	4.55%	-29.94%	-178.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Capital Bancorp Corporate Events

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.