Carter Bankshares (CARE) AI Stock Analysis

• Market Cap: $440.25M
• Dividend Yield: N/A
• Average Volume (3M): 75.61K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.87
• Revenue Growth: 9.18%
• EPS Growth: 153.68%
• Country: US
• Employees: 680
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 22,669,834
• 10 Day Avg. Volume: 80,487
• 30 Day Avg. Volume: 75,611
• 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: 1.05
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 9.82
• 1Y Price Target: $22.00
• Price Target Upside: 17.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $21.00 ▲(12.24% Upside)

Carter Bankshares demonstrates strong financial performance with effective leverage management and robust cash flow metrics. The stock's technical indicators suggest moderate bullish momentum, while its valuation is reasonable. However, the decline in revenue growth and lack of dividend yield are areas of concern.

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 demonstrates solid financial performance with strong revenue growth and efficient cost management. The balance sheet is stable with manageable leverage, and cash flow metrics indicate strong liquidity and operational efficiency. However, there is room for improvement in profitability and capital structure.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	223.88M	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	37.76M	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: Neutral
• Last Price: 18.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARE, the sentiment is Neutral. The current price of 18.71 is below the 20-day moving average (MA) of 19.50, below the 50-day MA of 19.03, and above the 200-day MA of 17.32, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CARE.

Carter Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	76 Outperform	$419.00M	8.96	14.31%	2.30%	8.45%	21.74%
BSVN	75 Outperform	$430.59M	9.80	20.97%	2.27%	-2.96%	37.09%
RRBI	73 Outperform	$425.30M	11.23	12.02%	0.78%	9.09%	23.58%
HBCP	71 Outperform	$420.89M	10.31	10.55%	2.10%	8.03%	15.18%
CARE	69 Neutral	$440.25M	14.21	8.06%	―	9.18%	153.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	62 Neutral	$419.67M	22.53	4.37%	4.14%	38.01%	-58.08%

Carter Bankshares Corporate Events

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.

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.