Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $487.90M
• Dividend Yield: N/A
• Average Volume (3M): 87.03K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.78
• 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: 22,087,044
• 10 Day Avg. Volume: 91,559
• 30 Day Avg. Volume: 87,025
• PEG Ratio: 2.78
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 14.19
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 11.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $24.00 ▲(19.17% Upside)

The score is driven primarily by solid financial performance (strong growth and improving profitability, offset by higher leverage and some cash-flow/efficiency concerns) and a favorable technical uptrend. Valuation is fair but lacks dividend support, while recent corporate actions (notably the buyback authorization) modestly enhance the outlook.

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

Overall fundamentals are solid: very strong TTM revenue growth (99.9%) and improved TTM net margin (13.71%) support the score. This is tempered by higher leverage (debt-to-equity 0.43) and signs of operating inefficiency (EBIT/EBITDA margins still leave room to improve; operating cash flow conversion flagged as low versus net income).

Income Statement

Carter Bankshares shows strong revenue growth with a TTM growth rate of 99.9%, indicating robust expansion. The gross profit margin is healthy at 50.91%, though it has decreased from previous years. The net profit margin has improved to 13.71% in the TTM, reflecting better profitability. However, the EBIT and EBITDA margins, while improving, suggest room for further operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased to 0.43 in the TTM, indicating a rise in leverage, which could pose a risk if not managed carefully. Return on equity is moderate at 7.77%, showing decent profitability relative to equity. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Free cash flow has grown by 6.3% in the TTM, indicating positive cash generation. The free cash flow to net income ratio is strong at 77.54%, suggesting efficient conversion of income into cash. However, the operating cash flow to net income ratio is low, indicating potential issues in cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	248.06M	239.67M	211.82M	179.15M	156.38M	163.77M
Gross Profit	150.60M	137.45M	131.31M	155.97M	131.58M	109.94M
EBITDA	47.26M	37.92M	34.97M	67.78M	41.93M	-38.94M
Net Income	31.16M	24.52M	23.38M	50.12M	31.59M	-45.86M
Balance Sheet
Total Assets	4.84B	4.66B	4.51B	4.20B	4.13B	4.18B
Cash, Cash Equivalents and Short-Term Investments	771.25M	786.12M	774.17M	883.14M	1.20B	1.02B
Total Debt	175.50M	70.00M	393.40M	198.42M	7.00M	35.00M
Total Liabilities	4.43B	4.27B	4.16B	3.88B	3.73B	3.74B
Stockholders Equity	412.84M	384.31M	351.24M	328.63M	407.60M	440.17M
Cash Flow
Free Cash Flow	31.13M	28.80M	36.93M	64.90M	69.05M	-2.42M
Operating Cash Flow	39.24M	36.94M	46.73M	70.79M	77.54M	7.70M
Investing Cash Flow	-178.09M	-68.40M	-307.01M	-382.07M	-106.36M	-93.27M
Financing Cash Flow	140.81M	108.11M	267.94M	80.35M	64.67M	201.69M

Carter Bankshares Technical Analysis

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

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 20.14 is below the 20-day moving average (MA) of 20.65, above the 50-day MA of 19.92, and above the 200-day MA of 18.27, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 82.27 is Negative, 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
BSVN	78 Outperform	$429.28M	10.09	19.46%	2.40%	-6.72%	19.64%
RRBI	78 Outperform	$610.46M	14.16	12.03%	0.73%	7.81%	26.91%
FBIZ	77 Outperform	$494.88M	9.81	15.02%	2.08%	8.21%	29.65%
HBCP	73 Outperform	$485.42M	10.56	10.86%	1.92%	6.25%	24.92%
COFS	73 Outperform	$457.47M	15.15	6.16%	3.69%	50.36%	-56.64%
CARE	72 Outperform	$487.90M	15.90	7.71%	―	6.62%	117.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.

Carter Bankshares Subsidiary Gains State Member Bank Approval

On November 13, 2025, Carter Bankshares, Inc. announced that its subsidiary, Carter Bank, received approval from the Federal Reserve System to become a state member bank. This transition is expected to streamline regulatory structures and enhance operational efficiency, marking a significant step towards the company’s strategic objectives. The move also aligns with Carter Bankshares’ recent conversion to a financial holding company, providing greater flexibility for innovation and growth.

The most recent analyst rating on (CARE) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.

Carter Bankshares Reports Q3 2025 Financial Performance

Carter Bankshares, Inc. released an investor presentation detailing its financial performance and strategic initiatives as of the third quarter of 2025. The company reported a 3.1% growth in deposits compared to the previous year and highlighted a strong liquidity position. With $4.8 billion in assets and $3.8 billion in loans, the bank is focused on expanding its market presence, particularly in North Carolina and South Carolina, while maintaining a well-capitalized franchise. The presentation also noted the company’s efforts in onboarding new customers and hiring new executives to support its growth strategy.

The most recent analyst rating on (CARE) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.