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Carter Bankshares
(NASDAQ:CARE)
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Rating:84Outperform
Price Target:
$40.00
â–²(17.61% Upside)
Action:Reiterated
Date:08/07/26
CARE scores well primarily due to strong TTM financial performance (profitability jump, high-quality free cash flow, and improved leverage) and very attractive valuation (low P/E and high dividend yield). Technicals are supportive with an established uptrend and moderate momentum, while corporate actions (portfolio repositioning, credit cleanup, and dividend activity) add a positive—but secondary—tailwind.
Positive Factors
Cash Generation
Very strong trailing-twelve-month free cash flow indicates high earnings quality and internal funding capacity. Sustained FCF near reported profits supports organic loan growth, dividend reinstatement, capital cushions and reduces reliance on external funding, strengthening long-term financial stability.
Negative Factors
Earnings Volatility
Multi-year cyclical swings in profitability and cash flow undermine predictability of returns and capital planning. Persistent volatility increases the risk that dividends, credit supply, or expansion plans must be scaled back during downturns, pressuring long-term investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Very strong trailing-twelve-month free cash flow indicates high earnings quality and internal funding capacity. Sustained FCF near reported profits supports organic loan growth, dividend reinstatement, capital cushions and reduces reliance on external funding, strengthening long-term financial stability.
Read all positive factors
Carter Bankshares (CARE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$731.41M
Dividend Yield0.61%
Average Volume (3M)428.42K
Price to Earnings (P/E)5.6
Beta (1Y)0.54
Revenue Growth40.09%
EPS Growth327.11%
CountryUS
Employees687
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.88
Shares Outstanding22,163,930
10 Day Avg. Volume364,702
30 Day Avg. Volume428,420
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.75Price Target Upside-9.59% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.43
Revenue Forecast (FY)$259.47M
Carter Bankshares Business Overview & Revenue Model
Company Description
Carter Bankshares, Inc. functions as the parent company for Carter Bank & Trust, delivering a comprehensive suite of banking solutions. It provides a variety of deposit accounts, including checking, savings, retirement, money market, and longer-te...
How the Company Makes Money
Carter Bankshares makes money primarily through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income. Net interest income is the largest revenue driver for most traditional banks and is produced by collec...
Carter Bankshares Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 348.48M | 254.63M | 239.67M | 211.82M | 179.15M | 156.38M |
| Gross Profit | 285.25M | 157.06M | 137.45M | 131.31M | 155.97M | 131.58M |
| EBITDA | 171.65M | 47.86M | 37.92M | 34.97M | 67.78M | 41.93M |
| Net Income | 128.57M | 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 | 41.10M | 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 | 4.26B | 4.43B | 4.27B | 4.16B | 3.88B | 3.73B |
| Stockholders Equity | 539.15M | 419.70M | 384.31M | 351.24M | 328.63M | 407.60M |
Cash Flow | ||||||
| Free Cash Flow | 58.76M | 31.81M | 28.80M | 36.93M | 64.90M | 69.05M |
| Operating Cash Flow | 67.26M | 39.86M | 36.94M | 46.73M | 70.79M | 77.54M |
| Investing Cash Flow | 263.52M | -155.91M | -68.40M | -307.01M | -382.07M | -106.36M |
| Financing Cash Flow | -154.14M | 90.04M | 108.11M | 267.94M | 80.35M | 64.67M |
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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $731.41M | 5.61 | 27.40% | 0.29% | 40.09% | 327.11% | |
83 Outperform | $659.19M | 14.34 | 12.47% | 0.80% | 7.25% | 22.64% | |
80 Outperform | $565.75M | 11.90 | 10.65% | 1.74% | 2.06% | 14.90% | |
80 Outperform | $481.39M | 11.42 | 16.48% | 2.18% | -0.23% | -6.18% | |
76 Outperform | $595.15M | 10.68 | 14.75% | 1.88% | 6.56% | 16.72% | |
74 Outperform | $509.51M | 9.36 | 11.72% | 3.51% | 35.31% | 190.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CARE
Carter Bankshares
33.00
15.56
89.19%
FBIZ
First Business Financial
71.12
24.66
53.07%
HBCP
Home Bancorp
71.88
22.11
44.41%
BSVN
Bank7
50.57
7.61
17.72%
RRBI
Red River Bancshares
100.11
39.09
64.06%
COFS
ChoiceOne Financial Services
34.08
6.20
22.23%
Carter Bankshares Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and Compliance
Carter Bankshares Highlights Strategic Repositioning and Expansion
Positive
Jul 27, 2026
In the second quarter of 2026, Carter Bankshares, Inc. furnished an investor presentation outlining its recent strategic and financial developments, highlighting a well-capitalized franchise with $4.8 billion in assets and continued expansion acro...
Dividends
Carter Bankshares Declares Quarterly Cash Dividend for Shareholders
Positive
Jul 23, 2026
On July 23, 2026, Carter Bankshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share for its shareholders. The dividend will be paid on August 24, 2026 to shareholders of record as of August 10, 202...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Carter Bankshares Updates Executive Agreements and Governance Terms
Neutral
Jun 24, 2026
On June 18, 2026, Carter Bankshares, Inc. and Carter Bank Trust executed amended and restated employment and change-of-control agreements for several senior executives, including the CEO, president and chief strategy officer, CFO, COO and chief c...
Business Operations and StrategyFinancial Disclosures
Carter Bankshares Repositions Securities Portfolio to Boost Profitability
Positive
May 29, 2026
On May 29, 2026, Carter Bankshares, Inc. announced it had completed a strategic repositioning of its available-for-sale securities portfolio, selling $139.4 million in lower-yielding securities with a 2.28% average yield, or about 18.7% of its por...
Executive/Board ChangesShareholder Meetings
Carter Bankshares Shareholders Affirm Directors and Executive Pay
Positive
May 29, 2026
At its 2026 Annual Meeting of Shareholders held on May 27, 2026, Carter Bankshares, Inc. reported that 17,183,400 shares were represented in person or by proxy, and shareholders elected 11 directors to serve until the 2027 Annual Meeting or until ...
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.