Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $392.31M
• Dividend Yield: N/A
• Average Volume (3M): 89.76K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.92
• Revenue Growth: 9.18%
• EPS Growth: 154.46%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 23,159,014
• 10 Day Avg. Volume: 87,935
• 30 Day Avg. Volume: 89,756
• PEG Ratio: 0.99
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.16
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.00
• Price Target Upside: 3.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: $20.00 ▲(15.07%Upside)

Carter Bankshares' solid financial performance and strategic corporate initiatives are strong positives. Technical indicators suggest moderate strength, but valuation and the lack of a dividend yield temper the overall outlook. The absence of earnings call data leaves some uncertainty about near-term operational guidance.

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 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 shows solid revenue growth and efficient cost management, reflected in strong gross profit margins. However, net profit margins indicate room for profitability improvement. The balance sheet is stable with manageable leverage and effective equity utilization. Cash flow management is robust, demonstrating strong liquidity and operational efficiency.

Income Statement

Carter Bankshares has demonstrated solid revenue growth, with a notable increase in total revenue over the past few years. The gross profit margin remains strong, indicating efficient cost management. However, there is some pressure on the net profit margin, which suggests room for improvement in profitability. The consistent improvement in EBIT and EBITDA margins highlights operational efficiency gains.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, indicating some leverage but within manageable levels. The return on equity is reasonable, showing effective utilization of equity capital. The equity ratio signifies a stable financial foundation, although there is potential to optimize the capital structure for enhanced financial flexibility.

Cash Flow

Carter Bankshares exhibits strong cash flow management, with positive growth in free cash flow and a healthy operating cash flow to net income ratio. This suggests efficient conversion of income into cash. The free cash flow to net income ratio is robust, indicating effective capital expenditure management.

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

Carter Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARE, the sentiment is Negative. The current price of 17.38 is below the 20-day moving average (MA) of 17.93, above the 50-day MA of 17.21, and above the 200-day MA of 17.22, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 39.17 is Neutral, neither overbought nor oversold. The STOCH value of 4.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CARE.

Carter Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSVN	75 Outperform	$418.51M	9.54	20.97%	2.17%	1.20%	46.86%
RRBI	72 Outperform	$402.13M	10.61	12.02%	0.71%	9.09%	23.58%
FRBA	71 Outperform	$374.50M	9.84	9.40%	1.59%	11.18%	24.61%
Sector *	67 Neutral	$16.60B	11.20	9.14%	3.93%	10.99%	-3.70%
MSBI	62 Neutral	$355.65M	10.30	6.47%	7.02%	14.47%	-18.94%
CARE	60 Neutral	$392.31M	12.42	8.09%	―	9.18%	154.46%
BMRC	52 Neutral	$367.29M	52.07	1.58%	4.42%	23.26%	―

Carter Bankshares Corporate Events

Carter Bankshares Reports Strong Growth by June 2025

Carter Bankshares, Inc. reported significant growth as of June 30, 2025, with an 8.8% increase in deposits compared to the previous year, and a robust liquidity position. The company continues to expand its footprint with recent acquisitions and corporate office expansions in North Carolina, reflecting its strategic focus on future growth and market presence.

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 Holds 2025 Annual Shareholders Meeting

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.

Carter Bankshares Completes Acquisition of First Reliance Deposits

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.

Carter Bankshares Announces $20M Share Buyback Program

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.

Carter Bankshares Releases New Investor Presentation

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.