Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $448.41M
• Dividend Yield: N/A
• Average Volume (3M): 70.38K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.90
• Revenue Growth: 9.18%
• EPS Growth: 153.68%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 22,669,834
• 10 Day Avg. Volume: 70,539
• 30 Day Avg. Volume: 70,380
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: $19.00
• Price Target Upside: -5.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $19.00 ▼(-5.71% Downside)

Carter Bankshares' overall score is driven by solid financial performance and strategic corporate events, such as acquisitions and a share buyback program, which support future growth. Technical analysis and valuation are neutral, indicating a balanced risk-reward profile.

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 investments. The key revenue streams include interest earned on various loan products such as personal loans, mortgages, and commercial loans. Additionally, the bank earns non-interest income from fees associated with checking and savings accounts, transaction services, and wealth management services. Significant partnerships with local businesses and community organizations also contribute to its customer base and service offerings, enhancing overall profitability. Furthermore, effective cost management strategies and operational efficiencies play a crucial role in maintaining healthy profit margins.

Carter Bankshares Financial Statement Overview

Summary

Carter Bankshares shows solid revenue growth and efficient cost management, reflected in strong gross profit margins. However, net profit margins indicate room for profitability improvement. The balance sheet is stable with manageable leverage and effective equity utilization. Cash flow management is robust, demonstrating strong liquidity and operational efficiency.

Income Statement

Carter Bankshares has demonstrated solid revenue growth, with a notable increase in total revenue over the past few years. The gross profit margin remains strong, indicating efficient cost management. However, there is some pressure on the net profit margin, which suggests room for improvement in profitability. The consistent improvement in EBIT and EBITDA margins highlights operational efficiency gains.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, indicating some leverage but within manageable levels. The return on equity is reasonable, showing effective utilization of equity capital. The equity ratio signifies a stable financial foundation, although there is potential to optimize the capital structure for enhanced financial flexibility.

Cash Flow

Carter Bankshares exhibits strong cash flow management, with positive growth in free cash flow and a healthy operating cash flow to net income ratio. This suggests efficient conversion of income into cash. The free cash flow to net income ratio is robust, indicating effective capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.67M	211.82M	179.15M	156.38M	163.77M
Gross Profit	137.45M	131.31M	155.97M	131.58M	109.94M
EBITDA	37.92M	34.97M	67.78M	41.93M	-38.94M
Net Income	24.52M	23.38M	50.12M	31.59M	-45.86M
Balance Sheet
Total Assets	4.66B	4.51B	4.20B	4.13B	4.18B
Cash, Cash Equivalents and Short-Term Investments	786.12M	774.17M	883.14M	1.20B	1.02B
Total Debt	70.00M	393.40M	198.42M	7.00M	35.00M
Total Liabilities	4.27B	4.16B	3.88B	3.73B	3.74B
Stockholders Equity	384.31M	351.24M	328.63M	407.60M	440.17M
Cash Flow
Free Cash Flow	28.80M	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: Positive
• Last Price: 20.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARE, the sentiment is Positive. The current price of 20.15 is above the 20-day moving average (MA) of 19.57, above the 50-day MA of 18.57, and above the 200-day MA of 17.25, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 69.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CARE.

Carter Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	80 Outperform	409.94M	10.78	10.32%	1.42%	11.18%	24.61%
RRBI	77 Outperform	436.25M	11.52	11.51%	0.71%	9.09%	23.58%
BSVN	75 Outperform	453.84M	10.33	0.00%	2.03%	-2.96%	37.09%
CARE	71 Outperform	$448.41M	14.55	8.06%	―	9.18%	153.68%
BMRC	66 Neutral	394.75M	56.78	1.58%	3.93%	23.26%	0.00%
MSBI	56 Neutral	386.49M	-3.33	5.35%	6.76%	14.49%	-380.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Carter Bankshares Corporate Events

Carter Bankshares CEO Announces Medical Leave

On August 11, 2025, Litz H. Van Dyke, CEO of Carter Bankshares, Inc., informed employees about a medical issue requiring surgery. Despite the upcoming procedure, Van Dyke assured that he would remain engaged in bank operations with the support of the executive team, indicating no expected disruptions in operations.

Carter Bankshares Reports Strong Growth by June 2025

Carter Bankshares, Inc. reported significant growth as of June 30, 2025, with an 8.8% increase in deposits compared to the previous year, and a robust liquidity position. The company continues to expand its footprint with recent acquisitions and corporate office expansions in North Carolina, reflecting its strategic focus on future growth and market presence.