Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $362.92M
• Dividend Yield: N/A
• Average Volume (3M): 73.85K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.91
• Revenue Growth: 13.23%
• EPS Growth: 8.42%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 1.06
• Shares Outstanding: 23,130,924
• 10 Day Avg. Volume: 76,918
• 30 Day Avg. Volume: 73,849
• PEG Ratio: 1.75
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.86
• Price to Cash Flow (P/CF): 8.30
• P/FCF Ratio: 2.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Carter Bankshares scores 63, driven by strong financial performance and a strategic rebranding effort. While financials reveal robust revenue growth and a debt-free balance sheet, cash flow growth remains a challenge. Technically, the stock is in a bearish phase, though valuation appears reasonable. The recent corporate event boosts future growth potential. Focus on cash flow improvement and market momentum could enhance the outlook.

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 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

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

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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
221.73M	136.61M	73.00K	133.66M	127.95M
	Gross Profit
221.73M	134.19M	73.00K	133.66M	127.95M
	EBIT
216.05M	28.72M	81.97M	35.70M	-45.09M
	EBITDA
0.00	0.00	67.78M	41.93M	0.00
	Net Income Common Stockholders
24.52M	23.38M	50.12M	31.59M	-45.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
849.57M	54.53M	883.14M	1.20B	1.02B
	Total Assets
4.66B	4.51B	4.20B	4.13B	4.18B
	Total Debt
70.00M	393.40M	198.42M	7.00M	35.00M
	Net Debt
-61.17M	338.87M	151.55M	-270.80M	-206.94M
	Total Liabilities
4.27B	4.16B	3.88B	7.00M	35.00M
	Stockholders Equity
384.31M	351.24M	328.63M	407.60M	440.17M
Cash Flow		Free Cash Flow
36.94M	36.93M	64.90M	69.05M	-2.42M
	Operating Cash Flow
36.94M	46.73M	70.79M	77.54M	7.70M
	Investing Cash Flow
-68.40M	-307.01M	-382.07M	-106.36M	-93.27M
	Financing Cash Flow
108.11M	267.94M	80.35M	64.67M	201.69M

Carter Bankshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.69 is above the 20-day moving average (MA) of 15.08, below the 50-day MA of 16.19, and below the 200-day MA of 17.18, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CARE.

Carter Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSVN	75 Outperform	$341.84M	7.68	22.26%	2.60%	1.20%	46.86%
FRBA	72 Outperform	$349.12M	9.00	9.81%	1.73%	18.63%	37.17%
RRBI	64 Neutral	$348.91M	10.40	10.98%	0.76%	12.88%	2.03%
CARE	63 Neutral	$362.92M	14.75	6.60%	―	13.23%	8.42%
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%
BMRC	57 Neutral	$340.75M	―	-1.92%	4.74%	-16.98%	-141.53%
MSBI	54 Neutral	$355.48M	12.51	-1.83%	7.38%	3.95%	-135.44%

Carter Bankshares Corporate Events

Carter Bankshares Announces Director Retirement in 2025

On March 18, 2025, Carter Bankshares announced that director E. Warren Matthews will retire and not stand for re-election at the company’s 2025 Annual Meeting of Shareholders scheduled for May 28, 2025. Matthews will remain a director until the end of his term at the Annual Meeting, and his decision to retire is not due to any disagreement with the company. The board plans to reduce its size from 12 to 11 members following his departure.

Carter Bankshares Celebrates 50th Anniversary with Rebranding

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.