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"We rate SHORE BANCSHARES INC (SHBI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SHORE BANCSHARES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, SHORE BANCSHARES INC continued to lose money by earning -$1.14 versus -$1.15 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus -$1.14).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 111.1% when compared to the same quarter one year prior, rising from -$11.39 million to $1.26 million.
- Net operating cash flow has significantly increased by 1190.62% to $3.72 million when compared to the same quarter last year. In addition, SHORE BANCSHARES INC has also vastly surpassed the industry average cash flow growth rate of -63.98%.
- The gross profit margin for SHORE BANCSHARES INC is currently very high, coming in at 86.66%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SHBI's net profit margin of 9.22% significantly trails the industry average.
- You can view the full analysis from the report here: SHBI Ratings Report