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Carter Bankshares (CARE)
NASDAQ:CARE

Carter Bankshares (CARE) AI Stock Analysis

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Carter Bankshares

(NASDAQ:CARE)

Rating:72Outperform
Price Target:
$20.50
▲(12.51%Upside)
Carter Bankshares benefits from solid financial performance and positive corporate events, such as strategic acquisitions and a share buyback program. While technical indicators suggest current overbought conditions, the company's fair valuation supports its overall attractiveness. The lack of dividend yield is a minor drawback.

Carter Bankshares (CARE) vs. SPDR S&P 500 ETF (SPY)

Carter Bankshares Business Overview & Revenue Model

Company DescriptionCarter Bankshares, Inc. (CARE) is a bank holding company headquartered in Martinsville, Virginia. Through its subsidiary, Carter Bank & Trust, the company operates in the financial services sector, providing a range of banking products and services to individuals and businesses. Its core offerings include personal and business banking, mortgage and loan services, and various deposit products such as savings and checking accounts.
How the Company Makes MoneyCarter Bankshares generates revenue primarily through interest income from its lending activities. The company earns money by providing loans to individuals and businesses, including commercial real estate loans, residential mortgages, and consumer loans, and charging interest on the outstanding balances. Additionally, Carter Bankshares generates non-interest income from fees associated with its banking services, such as account maintenance fees, transaction fees, and service charges. The company may also benefit from investment income by managing its portfolio of securities. Strategic partnerships and community engagement initiatives may further enhance its market position and profitability, though specific details on significant partnerships are not available.

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. The company is well-positioned but should focus on enhancing cash flow efficiency and leveraging its equity position for growth.
Income Statement
70
Positive
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
65
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue132.40M136.61M73.00K133.66M127.95M
Gross Profit43.08M134.19M73.00K133.66M127.95M
EBITDA0.000.0067.78M41.93M0.00
Net Income24.52M23.38M50.12M31.59M-45.86M
Balance Sheet
Total Assets4.66B4.51B4.20B4.13B4.18B
Cash, Cash Equivalents and Short-Term Investments849.57M54.53M883.14M1.20B1.02B
Total Debt70.00M393.40M198.42M7.00M35.00M
Total Liabilities4.27B4.16B3.88B7.00M35.00M
Stockholders Equity384.31M351.24M328.63M407.60M440.17M
Cash Flow
Free Cash Flow28.80M36.93M64.90M69.05M-2.42M
Operating Cash Flow36.94M46.73M70.79M77.54M7.70M
Investing Cash Flow-68.40M-307.01M-382.07M-106.36M-93.27M
Financing Cash Flow108.11M267.94M80.35M64.67M201.69M

Carter Bankshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.22
Price Trends
50DMA
16.48
Positive
100DMA
16.29
Positive
200DMA
17.17
Positive
Market Momentum
MACD
0.50
Negative
RSI
70.98
Negative
STOCH
73.13
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 18.22 is above the 20-day moving average (MA) of 17.26, above the 50-day MA of 16.48, and above the 200-day MA of 17.17, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 70.98 is Negative, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CARE.

Carter Bankshares Risk Analysis

Carter Bankshares disclosed 36 risk factors in its most recent earnings report. Carter Bankshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Carter Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$405.92M10.489.81%1.49%18.63%37.17%
78
Outperform
$430.34M12.1611.51%0.74%10.47%13.63%
75
Outperform
$419.83M9.5722.26%2.16%1.20%46.86%
72
Outperform
$419.41M15.207.20%13.73%111.06%
66
Neutral
$417.56M-1.47%3.88%-15.92%-147.11%
61
Neutral
C$14.65B6.1022.26%5.60%27.38%-22.40%
58
Neutral
$402.98M13.925.03%6.62%14.75%-48.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CARE
Carter Bankshares
18.22
2.53
16.12%
BMRC
Bank Of Marin Bancorp
25.83
7.70
42.47%
MSBI
Midland States Bancrop
18.91
-3.24
-14.63%
FRBA
First Bank
16.20
3.41
26.66%
BSVN
Bank7
45.10
11.02
32.34%
RRBI
Red River Bancshares
64.65
15.05
30.34%

Carter Bankshares Corporate Events

Executive/Board ChangesShareholder Meetings
Carter Bankshares Holds 2025 Annual Shareholders Meeting
Neutral
May 29, 2025

On May 28, 2025, Carter Bankshares, Inc. held its 2025 Annual Meeting of Shareholders, where a total of 19,189,660 shares were voted. During the meeting, 11 directors were elected to serve until the 2026 Annual Meeting, the compensation of the company’s named executive officers was approved in an advisory vote, and Crowe LLP was ratified as the independent auditors for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership continuity and financial oversight.

The most recent analyst rating on (CARE) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Carter Bankshares Completes Acquisition of First Reliance Deposits
Positive
May 27, 2025

On May 27, 2025, Carter Bankshares, Inc. announced the completion of its acquisition of deposits from two First Reliance Bank branches in Mooresville and Winston-Salem, North Carolina. This strategic move marks the Bank’s entry into the Winston-Salem market and expands its presence near Charlotte, reflecting its commitment to growth and service in North Carolina. The acquisition involved $55.9 million in deposits and the addition of 10 new associates, although no loans were acquired. The branches were converted and opened as Carter Bank branches immediately following the transaction, highlighting the Bank’s dedication to seamless transitions and strengthening its market position in the region.

The most recent analyst rating on (CARE) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.

Stock Buyback
Carter Bankshares Announces $20M Share Buyback Program
Positive
May 20, 2025

On May 20, 2025, Carter Bankshares, Inc. announced that its Board of Directors has approved a common share repurchase program, allowing the company to buy back up to $20 million of its common stock by May 14, 2026. This initiative provides management with the flexibility to repurchase shares based on various factors such as market conditions and the company’s financial health, potentially impacting the company’s stock value and shareholder returns.

The most recent analyst rating on (CARE) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Carter Bankshares stock, see the CARE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Carter Bankshares Releases New Investor Presentation
Neutral
May 1, 2025

Carter Bankshares has released an investor presentation to provide financial data and insights to investors, analysts, and other interested parties. This presentation, available on the company’s website, aims to enhance understanding of the company’s financial position and strategic direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025