Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $444.39M
• Dividend Yield: N/A
• Average Volume (3M): 87.03K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.77
• Revenue Growth: 6.62%
• EPS Growth: 117.46%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.26
• 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: 1.04
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 9.75
• 1Y Price Target: $22.00
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $21.50 ▲(4.83% Upside)

Carter Bankshares receives a strong overall score due to its robust financial performance and positive corporate developments. The technical indicators show bullish momentum, although caution is advised due to overbought signals. The valuation is reasonable, but the lack of a dividend yield may limit appeal to some investors. The recent approval for state member bank status is a key positive, enhancing the company's strategic positioning.

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

Carter Bankshares presents a generally positive financial outlook with strong profitability and cash flow metrics. The company has effectively managed its leverage, maintaining a low debt-to-equity ratio. However, the decline in revenue growth is a concern that needs addressing to sustain long-term growth. Overall, the financial statements reflect a stable and profitable company with room for improvement in revenue generation.

Income Statement

Carter Bankshares shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 7.97%, which is a concern. However, the company maintains a solid net profit margin of 12.72% and an EBIT margin of 16.01%, indicating operational efficiency. The gross profit margin is healthy at 44.74%, though it has decreased compared to previous periods. Overall, while profitability metrics are strong, the negative revenue growth trend is a significant weakness.

Balance Sheet

The balance sheet of Carter Bankshares reflects a stable financial position with a low debt-to-equity ratio of 0.28 in the TTM period, indicating prudent leverage management. The return on equity (ROE) is at 7.95%, showing decent profitability relative to shareholder equity. The equity ratio stands at 8.48%, suggesting a conservative capital structure. While the company has reduced its debt significantly over the years, the relatively low equity ratio could be a potential risk if asset values fluctuate.

Cash Flow

Carter Bankshares demonstrates strong cash flow management with a significant free cash flow growth rate of 68.97% in the TTM period. The operating cash flow to net income ratio is robust, indicating effective conversion of earnings into cash. The free cash flow to net income ratio is 67.42%, reflecting efficient cash generation relative to profits. Despite previous fluctuations, the current cash flow metrics suggest a positive trajectory.

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: 20.51
• 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 20.51 is above the 20-day moving average (MA) of 19.01, above the 50-day MA of 18.37, and above the 200-day MA of 17.53, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 82.38 is Negative, neither overbought nor oversold. The STOCH value of 89.56 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
RRBI	78 Outperform	$500.39M	12.30	12.03%	0.73%	7.81%	26.91%
FBIZ	76 Outperform	$479.39M	9.47	15.02%	2.01%	8.21%	29.65%
CARE	75 Outperform	$444.39M	15.13	7.71%	―	6.62%	117.46%
BSVN	75 Outperform	$423.32M	9.87	19.46%	2.35%	-6.72%	19.64%
HBCP	75 Outperform	$478.14M	10.87	10.86%	1.86%	6.25%	24.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	67 Neutral	$478.51M	23.38	6.16%	3.55%	50.36%	-56.64%

Carter Bankshares Corporate Events

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.

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.