Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $434.64M
• Dividend Yield: N/A
• Average Volume (3M): 87.03K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.81
• Revenue Growth: 6.62%
• EPS Growth: 117.46%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 22,164,454
• 10 Day Avg. Volume: 91,559
• 30 Day Avg. Volume: 87,025
• PEG Ratio: 0.44
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 13.88
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 11.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $179.29M

• Rating: 63 Neutral
• Price Target: $22.00 ▲(9.24% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is primarily driven by steady recent financial performance with improved 2025 cash generation, tempered by multi-year volatility in profitability, leverage, and free-cash-flow trends. Technical indicators point to softer near-term momentum, while valuation (P/E ~14) appears reasonable. Corporate events add a modest positive tilt due to the buyback authorization and growth/expansion updates.

Positive Factors

State Member Bank Approval

This approval streamlines regulatory structures and enhances operational efficiency, aligning with strategic objectives for growth and innovation.

Revenue Growth

Robust revenue growth indicates successful market expansion and product adoption, supporting long-term financial health and competitive positioning.

Liquidity Position

A strong liquidity position enhances the bank's ability to meet obligations and invest in growth opportunities, ensuring financial stability.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting long-term stability if not managed carefully.

Operational Inefficiencies

Operational inefficiencies may hinder profit margins and growth, requiring management focus to enhance efficiency and sustain profitability.

Declining Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Carter Bankshares Business Overview & Revenue Model

Company Description

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction and acquisition loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll and social security checks, online banking, bill pay, online account opening, mobile deposit, mobile banking, debit cards, e-statements, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. It operates through 69 branches in Virginia and North Carolina. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

How the Company Makes Money

Carter Bankshares generates revenue primarily through interest income from loans and fees associated with its banking services. The company's key revenue streams include interest earned on various types of loans, such as personal loans, commercial loans, and mortgages. Additionally, it earns non-interest income from service fees related to deposit accounts, ATM transactions, and financial advisory services. The bank's strategic partnerships with local businesses and community organizations also enhance its customer base and drive additional revenue through cross-selling opportunities. Factors contributing to its earnings include effective loan underwriting practices, a strong focus on customer service, and the overall economic environment impacting interest rates and loan demand.

Carter Bankshares Financial Statement Overview

Summary

Recent results are solid but not consistently strong: revenue has grown steadily through 2025 with positive profitability (12.3% net margin; 15.7% EBIT margin) and improved 2025 cash generation (FCF up ~28% and ~1.0x net income). Offsetting this, historical volatility in profitability (including a 2020 loss), leverage swings (debt-to-equity ranging from very low to >1.1x), and uneven FCF in 2023–2024 keep the score in the mid-to-upper range rather than top tier.

Income Statement

Revenue has grown steadily from 2021–2025 (with a modest 2.6% increase in 2025), and profitability remains positive with a 12.3% net margin and 15.7% EBIT margin in 2025. However, margins and earnings are well below the unusually strong 2021–2022 period, highlighting volatility (including a loss in 2020) and a step-down in profitability that tempers the overall quality of the earnings trajectory.

Balance Sheet

Leverage appears manageable in 2025 with debt at ~0.43x equity, and equity has grown versus prior years, supporting balance sheet resilience. The key weakness is variability in leverage (debt-to-equity ranged from very low in 2021 to over 1.1x in 2023), which suggests balance sheet strategy and risk posture have not been consistent; returns on equity are also moderate at ~7.5% in 2025 versus stronger levels in 2022.

Cash Flow

Cash generation improved meaningfully in 2025: operating cash flow rose and free cash flow grew ~28%, with free cash flow matching net income (1.0x), supporting earnings quality. Offsetting this, free cash flow was weaker in 2023–2024 (including negative growth) and was negative in 2020, indicating cash flow can swing materially year to year even when reported profits are positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	254.63M	239.67M	211.82M	179.15M	156.38M
Gross Profit	157.06M	137.45M	131.31M	155.97M	131.58M
EBITDA	40.00M	37.92M	34.97M	67.78M	41.93M
Net Income	31.36M	24.52M	23.38M	50.12M	31.59M
Balance Sheet
Total Assets	4.85B	4.66B	4.51B	4.20B	4.13B
Cash, Cash Equivalents and Short-Term Investments	796.77M	786.12M	774.17M	883.14M	1.20B
Total Debt	178.50M	70.00M	393.40M	198.42M	7.00M
Total Liabilities	4.43B	4.27B	4.16B	3.88B	3.73B
Stockholders Equity	419.70M	384.31M	351.24M	328.63M	407.60M
Cash Flow
Free Cash Flow	31.81M	28.80M	36.93M	64.90M	69.05M
Operating Cash Flow	39.86M	36.94M	46.73M	70.79M	77.54M
Investing Cash Flow	-155.91M	-68.40M	-307.01M	-382.07M	-106.36M
Financing Cash Flow	90.04M	108.11M	267.94M	80.35M	64.67M

Carter Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARE, the sentiment is Negative. The current price of 20.14 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 20.83, and above the 200-day MA of 19.01, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CARE.

Carter Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRBI	80 Outperform	$570.04M	11.15	12.35%	0.73%	7.81%	26.91%
BSVN	74 Outperform	$368.40M	8.98	19.46%	2.40%	-6.72%	19.64%
HBCP	73 Outperform	$460.31M	9.75	11.03%	1.92%	6.25%	24.92%
FBIZ	72 Outperform	$430.66M	8.80	14.27%	2.08%	8.21%	29.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CARE	63 Neutral	$434.64M	12.67	7.65%	―	6.62%	117.46%
COFS	58 Neutral	$404.96M	14.61	6.16%	3.69%	50.36%	-56.64%

Carter Bankshares Corporate Events

Carter Bankshares Announces $10 Million Share Repurchase Program

On February 2, 2026, Carter Bankshares, Inc. announced that its board of directors had authorized a common share repurchase program of up to $10 million of the company’s common stock, to be carried out over a 12‑month period following receipt of non‑objection from the Federal Reserve Bank of Richmond. The program, which may utilize open market or privately negotiated transactions at management’s discretion and can be modified or terminated by the board at any time, gives the company flexibility to manage its capital structure and respond to market conditions, though it does not obligate Carter Bankshares to repurchase any specific number of shares and remains subject to regulatory non‑objection and factors such as stock price, economic conditions, and the company’s financial and liquidity position.

The most recent analyst rating on (CARE) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.

Carter Bankshares updates Q4 2025 investor presentation

Carter Bankshares has released an updated investor presentation for the fourth quarter and full year ended 2025, outlining the financial and operational profile management is using in discussions with investors and analysts. The materials highlight a well‑capitalized franchise with growing momentum, including a 7.0% year‑over‑year increase in total portfolio loans of $254.7 million, loan production of which 65.1% was funded at a weighted average rate of 6.49%, and approximately $500 million of construction loans scheduled to fund over the next 12–18 months. The presentation also underscores the company’s strong available liquidity, its branch‑based regional footprint anchored in Virginia and North Carolina, recent expansion through the acquisition of two First Reliance Bank branches in North Carolina and planned entry into Greenville, South Carolina and Gastonia, North Carolina, as well as an ongoing brand refresh and seasoned leadership team, all of which frame Carter Bankshares’ efforts to strengthen its competitive position in its core Southeastern markets.

The most recent analyst rating on (CARE) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.