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Carter Bankshares (CARE)
NASDAQ:CARE

Carter Bankshares (CARE) AI Stock Analysis

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Carter Bankshares

(NASDAQ:CARE)

57Neutral
Carter Bankshares shows robust revenue growth and solid financial health, but its technical indicators suggest short-term weakness. The company is reasonably valued, though the absence of a dividend may deter some investors. Strategic rebranding and market expansion are positive, but improvements in cash flow efficiency are necessary for a higher score.

Carter Bankshares (CARE) vs. S&P 500 (SPY)

Carter Bankshares Business Overview & Revenue Model

Company DescriptionCarter Bankshares, Inc. (CARE) is a financial holding company headquartered in Martinsville, Virginia. It operates primarily through its subsidiary, Carter Bank & Trust, providing a comprehensive range of commercial and consumer banking services. The company serves individuals, businesses, and municipalities across its market area with a focus on community-first banking. Core services include personal and business checking and savings accounts, loans, mortgages, credit cards, and other financial products tailored to meet the needs of its customers.
How the Company Makes MoneyCarter Bankshares generates revenue primarily through interest income from its loan portfolio, which includes commercial, consumer, and mortgage loans. The bank also earns money from interest on investments and securities. Additionally, non-interest income is achieved through various fees and service charges associated with deposit accounts, loan origination, and other banking services. The company's revenue model is supported by its strong relationships with local communities and strategic partnerships that enhance its service offerings and market reach.

Carter Bankshares Financial Statement Overview

Summary
Carter Bankshares demonstrates strong revenue growth and solid profitability margins, reflecting effective operational management. The balance sheet is healthy with no debt, but there is room for improvement in equity returns. Cash flow management shows stability but lacks significant growth, suggesting a need for strategic improvements in capital allocation.
Income Statement
70
Positive
Carter Bankshares shows a strong improvement in revenue growth, with a significant increase in total revenue from the previous year. Gross profit margins are robust at 100%, reflecting effective cost management. The net profit margin is solid at around 11.06%, although it could be improved further. EBIT margin is strong, indicating good operational efficiency. However, the absence of EBITDA data is a limitation for comprehensive analysis.
Balance Sheet
65
Positive
The company maintains a strong equity position, with a debt-to-equity ratio of 0.00, suggesting no reliance on debt financing. The return on equity (ROE) is moderate at 6.38%, indicating reasonable profitability from equity. The equity ratio is strong at 8.25%, showcasing a solid financial position. However, the stockholders' equity has seen a slight increase, which could be a concern if growth doesn't accelerate.
Cash Flow
55
Neutral
Free cash flow is stable, but growth has been minimal over the year. Operating cash flow to net income ratio is 1.51, indicating decent cash generation from operations. However, the free cash flow to net income ratio is lower, which suggests potential inefficiencies in capital expenditure management. A focus on improving free cash flow growth could enhance the company's cash flow profile.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
207.65M221.73M136.61M73.00K133.66M127.95M
Gross Profit
207.65M221.73M134.19M73.00K133.66M127.95M
EBIT
68.40M216.05M28.72M81.97M35.70M-45.09M
EBITDA
7.67M0.000.0067.78M41.93M0.00
Net Income Common Stockholders
14.36M24.52M23.38M50.12M31.59M-45.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.08B849.57M54.53M883.14M1.20B1.02B
Total Assets
4.04B4.66B4.51B4.20B4.13B4.18B
Total Debt
0.000.00393.40M198.42M7.00M35.00M
Net Debt
-293.56M-131.17M338.87M151.55M-270.80M-206.94M
Total Liabilities
3.60B4.27B4.16B3.88B7.00M35.00M
Stockholders Equity
436.21M384.31M351.24M328.63M407.60M440.17M
Cash FlowFree Cash Flow
26.52M36.94M36.93M64.90M69.05M-2.42M
Operating Cash Flow
33.34M36.94M46.73M70.79M77.54M7.70M
Investing Cash Flow
-86.28M-68.40M-307.01M-382.07M-106.36M-93.27M
Financing Cash Flow
102.54M108.11M267.94M80.35M64.67M201.69M

Carter Bankshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price16.53
Price Trends
50DMA
17.32
Negative
100DMA
17.99
Negative
200DMA
16.81
Negative
Market Momentum
MACD
-0.37
Positive
RSI
41.51
Neutral
STOCH
14.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARE, the sentiment is Neutral. The current price of 16.53 is below the 20-day moving average (MA) of 17.08, below the 50-day MA of 17.32, and below the 200-day MA of 16.81, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CARE.

Carter Bankshares Risk Analysis

Carter Bankshares disclosed 34 risk factors in its most recent earnings report. Carter Bankshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Carter Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CFCFR
76
Outperform
$7.83B13.7515.13%3.09%7.81%-2.49%
76
Outperform
$5.50B13.7710.38%2.76%8.83%3.77%
73
Outperform
$874.92M9.8811.16%5.00%15.33%3.68%
69
Neutral
$2.32B10.129.72%3.87%9.95%-11.02%
64
Neutral
$13.79B10.529.20%4.24%17.25%-7.60%
62
Neutral
$3.14B11.109.69%4.00%21.10%-4.20%
57
Neutral
$367.78M14.956.60%13.23%8.42%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CARE
Carter Bankshares
16.53
4.11
33.09%
CFR
Cullen/Frost Bankers
123.36
20.90
20.40%
FFBC
First Financial Bancorp
24.54
4.23
20.83%
FULT
Fulton Financial
17.65
3.42
24.03%
HOMB
Home Bancshares
27.89
5.33
23.63%
SBSI
Southside Bancshares
28.89
2.71
10.35%

Carter Bankshares Corporate Events

Business Operations and StrategyFinancial Disclosures
Carter Bankshares Celebrates 50th Anniversary with Rebranding
Positive
Jan 28, 2025

Carter Bankshares has unveiled a new brand identity to mark its 50th anniversary, reflecting a renewed focus on its customers and communities. In 2024, the company demonstrated strong financial performance with $4.7 billion in assets, significant deposit growth, and strategic branch expansions into growth markets, enhancing its market positioning and operational capacity.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.