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: 2.06
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 9.82
• 1Y Price Target: $22.00
• Price Target Upside: 27.76% 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 ▲(7.43% 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.

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 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	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	80.40M	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: Negative
• Last Price: 17.22
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 17.22 is below the 20-day moving average (MA) of 18.26, below the 50-day MA of 19.05, and below the 200-day MA of 17.39, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 38.90 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 is Neutral, 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
FBIZ	76 Outperform	$420.96M	8.32	15.02%	2.18%	8.21%	29.65%
BSVN	75 Outperform	$389.57M	9.08	19.46%	2.41%	-6.72%	19.64%
RRBI	73 Outperform	$430.64M	10.87	12.03%	0.73%	7.81%	26.91%
HBCP	70 Outperform	$416.54M	9.47	10.86%	2.11%	6.25%	24.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	68 Neutral	$433.48M	21.27	6.16%	3.81%	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.