Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $367.78M
• Dividend Yield: N/A
• Average Volume (3M): 64.19K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.09
• Revenue Growth: 13.23%
• EPS Growth: 8.42%
• Country: US
• Employees: 679
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.06
• Shares Outstanding: 23,130,924
• 10 Day Avg. Volume: 60,838
• 30 Day Avg. Volume: 64,185
• PEG Ratio: 1.78
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.76
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 2.80
• 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 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 Business Overview & Revenue Model

Company Description

Carter 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 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
207.65M	221.73M	136.61M	73.00K	133.66M	127.95M
	Gross Profit
207.65M	221.73M	134.19M	73.00K	133.66M	127.95M
	EBIT
68.40M	216.05M	28.72M	81.97M	35.70M	-45.09M
	EBITDA
7.67M	0.00	0.00	67.78M	41.93M	0.00
	Net Income Common Stockholders
14.36M	24.52M	23.38M	50.12M	31.59M	-45.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	849.57M	54.53M	883.14M	1.20B	1.02B
	Total Assets
4.04B	4.66B	4.51B	4.20B	4.13B	4.18B
	Total Debt
0.00	0.00	393.40M	198.42M	7.00M	35.00M
	Net Debt
-293.56M	-131.17M	338.87M	151.55M	-270.80M	-206.94M
	Total Liabilities
3.60B	4.27B	4.16B	3.88B	7.00M	35.00M
	Stockholders Equity
436.21M	384.31M	351.24M	328.63M	407.60M	440.17M
Cash Flow		Free Cash Flow
26.52M	36.94M	36.93M	64.90M	69.05M	-2.42M
	Operating Cash Flow
33.34M	36.94M	46.73M	70.79M	77.54M	7.70M
	Investing Cash Flow
-86.28M	-68.40M	-307.01M	-382.07M	-106.36M	-93.27M
	Financing Cash Flow
102.54M	108.11M	267.94M	80.35M	64.67M	201.69M

Carter Bankshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	76 Outperform	$7.83B	13.75	15.13%	3.09%	7.81%	-2.49%
HOMB	76 Outperform	$5.50B	13.77	10.38%	2.76%	8.83%	3.77%
SBSI	73 Outperform	$874.92M	9.88	11.16%	5.00%	15.33%	3.68%
FFBC	69 Neutral	$2.32B	10.12	9.72%	3.87%	9.95%	-11.02%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FULT	62 Neutral	$3.14B	11.10	9.69%	4.00%	21.10%	-4.20%
CARE	57 Neutral	$367.78M	14.95	6.60%	―	13.23%	8.42%

Carter Bankshares Corporate Events

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.