Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $381.22M
• Dividend Yield: N/A
• Average Volume (3M): 87.03K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.88
• 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: 1.21
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 9.82
• 1Y Price Target: $22.00
• Price Target Upside: 19.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $18.50 ▲(0.87% Upside)

Carter Bankshares' overall stock score is driven by its strong financial performance, particularly in profitability and cash flow management. However, technical analysis indicates bearish momentum, and the lack of a dividend yield may deter some investors. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Management

Strong cash flow management and significant free cash flow growth indicate effective earnings conversion into cash, supporting long-term operational stability and investment capacity.

Net Interest Margin Improvement

Improvement in net interest margin reflects enhanced profitability from core banking operations, providing a buffer against interest rate fluctuations and supporting earnings growth.

Loan Growth

Strong loan growth, particularly in commercial lending, indicates robust demand and effective market penetration, supporting future revenue streams and market position.

Negative Factors

Revenue Growth Decline

Declining revenue growth poses a risk to sustaining long-term expansion and profitability, potentially impacting market competitiveness and financial health.

Nonperforming Credit Impact

Ongoing issues with nonperforming credits can strain financial metrics and asset quality, potentially leading to increased provisioning and impacting profitability.

Equity Ratio Concerns

A relatively low equity ratio could pose risks if asset values fluctuate, potentially impacting the company's ability to absorb financial shocks and maintain stability.

Carter Bankshares Business Overview & Revenue Model

Company Description

Carter Bankshares, operating under the ticker symbol CARE, is a financial institution based in the United States that primarily focuses on providing a wide range of banking services. The company operates through its subsidiary, Carter Bank & Trust, which serves both individual and business customers. Its core products include personal and business checking and savings accounts, loans (including mortgages, auto loans, and commercial loans), as well as wealth management and investment services. The bank aims to enhance customer relationships by offering tailored financial solutions and leveraging technology to improve service delivery.

How the Company Makes Money

Carter Bankshares generates revenue primarily through interest income from loans and investments. The key revenue streams include interest earned on various loan products such as personal loans, mortgages, and commercial loans. Additionally, the bank earns non-interest income from fees associated with checking and savings accounts, transaction services, and wealth management services. Significant partnerships with local businesses and community organizations also contribute to its customer base and service offerings, enhancing overall profitability. Furthermore, effective cost management strategies and operational efficiencies play a crucial role in maintaining healthy profit margins.

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.

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	245.61M	239.67M	211.82M	179.15M	156.38M	163.77M
Gross Profit	149.28M	137.45M	131.31M	155.97M	131.58M	109.94M
EBITDA	46.96M	37.92M	34.97M	67.78M	41.93M	-38.94M
Net Income	31.37M	24.52M	23.38M	50.12M	31.59M	-45.86M
Balance Sheet
Total Assets	4.78B	4.66B	4.51B	4.20B	4.13B	4.18B
Cash, Cash Equivalents and Short-Term Investments	855.12M	786.12M	774.17M	883.14M	1.20B	1.02B
Total Debt	113.50M	70.00M	393.40M	198.42M	7.00M	35.00M
Total Liabilities	4.38B	4.27B	4.16B	3.88B	3.73B	3.74B
Stockholders Equity	405.63M	384.31M	351.24M	328.63M	407.60M	440.17M
Cash Flow
Free Cash Flow	29.28M	28.80M	36.93M	64.90M	69.05M	-2.42M
Operating Cash Flow	37.74M	36.94M	46.73M	70.79M	77.54M	7.70M
Investing Cash Flow	-150.95M	-68.40M	-307.01M	-382.07M	-106.36M	-93.27M
Financing Cash Flow	151.37M	108.11M	267.94M	80.35M	64.67M	201.69M

Carter Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 18.34 is above the 20-day moving average (MA) of 17.41, below the 50-day MA of 18.40, and above the 200-day MA of 17.37, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 80.97 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
FBIZ	78 Outperform	$424.95M	8.40	15.02%	2.21%	8.21%	29.65%
RRBI	76 Outperform	$430.64M	10.87	12.03%	0.71%	7.81%	26.91%
BSVN	75 Outperform	$397.04M	9.26	19.46%	2.36%	-6.72%	19.64%
HBCP	70 Outperform	$416.54M	9.47	10.86%	2.04%	6.25%	24.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	67 Neutral	$433.48M	21.27	6.16%	3.66%	50.36%	-56.64%
CARE	60 Neutral	$381.22M	12.74	7.71%	―	6.62%	117.46%

Carter Bankshares Corporate Events

Carter Bankshares Reports Q3 2025 Financial Results

Carter Bankshares, Inc., headquartered in Martinsville, VA, operates as a holding company for Carter Bank, providing a range of commercial and consumer banking services across Virginia and North Carolina. In its third-quarter 2025 financial results, Carter Bankshares reported a net income of $5.4 million, or $0.24 per diluted share, a decline from the previous quarter but consistent with the same period last year. The company’s net interest income increased to $33.7 million, reflecting a 4.2% rise from the prior quarter and a 17.1% increase from the previous year, driven by a decline in funding costs and an increase in loan balances. However, the financial performance was impacted by nonaccrual loans related to the Justice Entities, which have significantly affected interest income. Despite challenges with nonperforming loans, the company saw a 9.4% annualized growth in total portfolio loans, reaching $3.8 billion. The net interest margin improved to 2.86%, and the efficiency ratio showed positive trends, indicating operational efficiency. Looking ahead, Carter Bankshares remains optimistic about its growth prospects, with a healthy loan pipeline and strategic expansions in key markets. The management is focused on resolving nonperforming loans while maintaining strong fundamentals and asset quality, positioning the company for a robust finish to 2025 and into 2026.

Carter Bankshares CEO Announces Medical Leave

On August 11, 2025, Litz H. Van Dyke, CEO of Carter Bankshares, Inc., informed employees about a medical issue requiring surgery. Despite the upcoming procedure, Van Dyke assured that he would remain engaged in bank operations with the support of the executive team, indicating no expected disruptions in operations.

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 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 Reports Q2 2025 Financial Results

Carter Bankshares, Inc., headquartered in Martinsville, VA, operates as a holding company for Carter Bank, providing a comprehensive range of commercial and consumer banking services across Virginia and North Carolina. In its latest earnings report for the second quarter of 2025, Carter Bankshares, Inc. reported a net income of $8.5 million, or $0.37 per diluted share, marking a slight decrease from the previous quarter but a significant increase from the same period last year. The company also highlighted a successful acquisition of two branch facilities and a stock repurchase program as part of its strategic initiatives. Key financial metrics showed growth in net interest income, which rose to $32.4 million, reflecting a 7.4% increase from the prior quarter and a 15.2% increase year-over-year. The company’s total portfolio loans grew by 6.5% on an annualized basis, and total deposits increased by 2.0% compared to the previous quarter. However, the company continues to face challenges with its largest credit relationship, which remains on nonaccrual status, impacting interest income. Looking ahead, Carter Bankshares remains optimistic about its growth prospects, with expectations of continued loan growth and potential benefits from any Federal Reserve interest rate cuts, positioning the company for a strong performance in the remainder of 2025.