Carter Bankshares (CARE)
NASDAQ:CARE
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Carter Bankshares
(NASDAQ:CARE)
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Rating:83Outperform
Price Target:
$31.00
▲(53.92% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong TTM financial performance (higher margins/returns and strong free cash flow) and exceptionally low P/E valuation. Technicals support the uptrend but are tempered by overbought readings that add near-term risk. Corporate events are supportive, highlighted by meaningful asset-quality cleanup, an expected divestiture gain, and the dividend reinstatement.
Positive Factors
Strong cash generation
High TTM operating and free cash flow with FCF nearly equal to net income indicates strong cash conversion and earnings quality. This durable cash generation supports organic loan growth, reinvestment, and capital return (dividend reinstatement) without heavy external funding.
Negative Factors
Historic earnings volatility
Profitability and revenue have swung materially across recent years, with the TTM surge following weaker periods. Such volatility implies earnings drivers (credit costs, margins, loan growth) can reverse, reducing confidence that current high margins and cash flow will persist over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
High TTM operating and free cash flow with FCF nearly equal to net income indicates strong cash conversion and earnings quality. This durable cash generation supports organic loan growth, reinvestment, and capital return (dividend reinstatement) without heavy external funding.
Read all positive factors
Carter Bankshares (CARE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$581.55M
Dividend YieldN/A
Average Volume (3M)87.03K
Price to Earnings (P/E)1.5
Beta (1Y)0.67
Revenue Growth30.36%
EPS Growth306.20%
CountryUS
Employees680
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.93
Shares Outstanding22,222,010
10 Day Avg. Volume91,559
30 Day Avg. Volume87,025
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.05
Price to Sales (P/S)1.73
P/FCF Ratio13.88
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit2.13
Enterprise Value/Ebitda3.83
Forecast
1Y Price Target
$27.00Price Target Upside34.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.47
Revenue Forecast (FY)$253.30M
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 w...
How the Company Makes Money
Carter Bankshares makes money primarily through its banking subsidiary by earning interest income and generating fee-based (noninterest) income. The largest driver is net interest income: the bank earns interest on loans (e.g., commercial, consume...
Carter Bankshares Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 319.93M | 254.63M | 239.67M | 211.82M | 179.15M | 156.38M |
| Gross Profit | 256.97M | 157.06M | 137.45M | 131.31M | 155.97M | 131.58M |
| EBITDA | 142.80M | 40.00M | 37.92M | 34.97M | 67.78M | 41.93M |
| Net Income | 108.17M | 31.36M | 24.52M | 23.38M | 50.12M | 31.59M |
Balance Sheet | ||||||
| Total Assets | 4.80B | 4.85B | 4.66B | 4.51B | 4.20B | 4.13B |
| Cash, Cash Equivalents and Short-Term Investments | 36.96M | 488.67M | 786.12M | 774.17M | 883.14M | 1.20B |
| Total Debt | 0.00 | 178.50M | 70.00M | 393.40M | 198.42M | 7.00M |
| Total Liabilities | 4.29B | 4.43B | 4.27B | 4.16B | 3.88B | 3.73B |
| Stockholders Equity | 504.90M | 419.70M | 384.31M | 351.24M | 328.63M | 407.60M |
Cash Flow | ||||||
| Free Cash Flow | 328.98M | 31.81M | 28.80M | 36.93M | 64.90M | 69.05M |
| Operating Cash Flow | 337.40M | 39.86M | 36.94M | 46.73M | 70.79M | 77.54M |
| Investing Cash Flow | -101.48M | -155.91M | -68.40M | -307.01M | -382.07M | -106.36M |
| Financing Cash Flow | -96.60M | 90.04M | 108.11M | 267.94M | 80.35M | 64.67M |
Carter Bankshares Technical Analysis
Positive
20.14
Price Trends
21.83
Positive
20.83
Positive
19.65
Positive
Market Momentum
0.91
Negative
72.16
Negative
59.76
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 20.14 is below the 20-day moving average (MA) of 23.03, below the 50-day MA of 21.83, and above the 200-day MA of 19.65, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 72.16 is Negative, neither overbought nor oversold. The STOCH value of 59.76 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 42 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $581.55M | 1.49 | 24.82% | ― | 30.36% | 306.20% | |
80 Outperform | $591.17M | 12.42 | 12.46% | 0.73% | 7.26% | 25.66% | |
79 Outperform | $496.20M | 10.30 | 10.86% | 1.92% | 3.07% | 25.18% | |
78 Outperform | $402.10M | 7.88 | 18.18% | 2.40% | 0.80% | -1.33% | |
73 Outperform | $460.17M | 9.05 | 14.12% | 2.08% | 5.94% | 10.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $462.28M | 7.70 | 12.28% | 3.69% | 59.56% | 203.82% |
* Financial Sector Average
CARE
Carter Bankshares
26.17
10.55
67.54%
FBIZ
First Business Financial
55.03
6.65
13.73%
HBCP
Home Bancorp
63.27
13.19
26.35%
BSVN
Bank7
42.24
4.28
11.28%
RRBI
Red River Bancshares
89.78
34.33
61.91%
COFS
ChoiceOne Financial Services
30.87
1.96
6.79%
Carter Bankshares Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Carter Bankshares Reinstates Dividend and Highlights Growth
Positive
May 1, 2026
Carter Bankshares, Inc. has released an updated first-quarter 2026 investor presentation that outlines the bank’s financial position and strategic momentum, highlighting $4.8 billion in assets and a well-capitalized balance sheet. The materi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Carter Bankshares Divests Bearing Insurance Group Stake
Positive
May 1, 2026
On May 1, 2026, Carter Bankshares, Inc., the holding company for Carter Bank Trust, completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party. Based on information currently available, the bank e...
Dividends
Carter Bankshares Declares Quarterly Cash Dividend to Shareholders
Positive
Apr 23, 2026
On April 23, 2026, Carter Bankshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on May 25, 2026 to shareholders of record as of May 11, 2026. Based on the April 21, 2026 closing stock...
Business Operations and StrategyFinancial Disclosures
Carter Bankshares Sells Nonperforming Justice-Linked Loan Portfolio
Positive
Mar 26, 2026
On March 26, 2026, Carter Bankshares, Inc. announced that Carter Bank Trust completed an absolute, as-is sale of all loans, subsequently reduced to judgments, tied to entities affiliated with James C. Justice II to an unaffiliated third party for...
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.