Carter Bankshares, Inc. (CARE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Carter Bankshares, Inc. (CARE) Financial Services Profile

Carter Bankshares, Inc. (CARE) is a regional bank holding company providing traditional banking services through 69 branches in Virginia and North Carolina. With a P/E ratio of 5.37 and a profit margin of 33.8%, the company focuses on commercial and consumer lending, deposit accounts, and digital banking solutions in a competitive regional market.

What Is the Investment Thesis for CARE?

Carter Bankshares, Inc. presents an investment opportunity within the regional banking sector, supported by a P/E ratio of 5.37 and a profit margin of 33.8%. Key value drivers include its established branch network across Virginia and North Carolina and its diverse loan portfolio. Growth catalysts involve expanding digital banking services and increasing market share within its existing footprint. Potential risks include interest rate sensitivity and competition from larger regional and national banks. Monitoring loan quality and managing operational costs will be crucial for maintaining profitability and shareholder value.

Based on FMP financials and quantitative analysis

CARE Key Highlights

Market capitalization of $699M indicates a mid-sized regional banking institution.

• P/E ratio of 5.37 suggests the company may be undervalued compared to its earnings.
• Profit margin of 33.8% demonstrates strong profitability compared to the industry average.
• Gross margin of 80.3% indicates efficient management of revenue and costs.
• Beta of 0.44 suggests lower volatility compared to the overall market.

Who Are CARE's Competitors?

CARE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CARE's Key Strengths?

Strong presence in Virginia and North Carolina.

• Diverse loan portfolio.
• Experienced management team.
• High gross profit margin.

What Are CARE's Weaknesses?

Limited geographic diversification.

• Reliance on traditional banking services.
• Smaller scale compared to national banks.
• Lack of dividend yield.

What Could Drive CARE Stock Higher?

Potential interest rate hikes by the Federal Reserve could increase net interest margin.

• Expansion of digital banking services to attract new customers.
• Strategic partnerships with fintech companies to enhance technology capabilities.
• Focus on commercial lending to drive revenue growth.

What Are the Key Risks for CARE?

Financial-distress signal — its Altman Z-Score of -0.62 sits in the distress zone (elevated bankruptcy risk).

• Economic downturn in Virginia and North Carolina could impact loan quality.
• Increased competition from larger national banks.
• Interest rate fluctuations could affect profitability.
• Cybersecurity threats and data breaches.
• Regulatory compliance costs.

What Are the Growth Opportunities for CARE?

• Expansion of Digital Banking Services: Carter Bankshares can capitalize on the growing demand for digital banking by enhancing its online and mobile platforms. Investing in user-friendly interfaces, mobile deposit features, and personalized financial management tools can attract and retain customers. The digital banking market is projected to reach $9.0 trillion in transaction value by 2027, offering a significant growth opportunity for Carter Bankshares.
• Strategic Branch Expansion: While digital banking is growing, physical branches remain important for customer service and relationship building. Carter Bankshares can strategically expand its branch network in underserved markets within Virginia and North Carolina. Identifying areas with strong economic growth and limited banking options can drive deposit growth and loan origination. This expansion should be coupled with modern branch designs and technology integration to enhance the customer experience.
• Increased Commercial Lending: Carter Bankshares can focus on expanding its commercial lending portfolio by targeting small and medium-sized businesses (SMBs) in its operating region. Offering tailored loan products, competitive interest rates, and personalized service can attract SMB clients. The SMB lending market is estimated at $800 billion annually, presenting a substantial growth opportunity for Carter Bankshares.
• Wealth Management Services: Introducing or expanding wealth management services can generate fee income and diversify revenue streams. Offering financial planning, investment management, and retirement planning services can attract high-net-worth individuals and families. The wealth management market is experiencing steady growth, driven by an aging population and increasing demand for financial advice.
• Partnerships with Fintech Companies: Collaborating with fintech companies can enhance Carter Bankshares' technology capabilities and expand its product offerings. Partnering with fintechs specializing in areas like payment processing, lending, and cybersecurity can improve efficiency and customer experience. Fintech partnerships can provide access to innovative technologies and new customer segments.

What Are CARE's Competitive Advantages?

• Established branch network in Virginia and North Carolina.
• Strong relationships with local businesses and communities.
• Experienced management team with local market knowledge.
• Conservative lending practices and risk management.

What Does CARE Do?

Carter Bankshares, Inc., founded in 1974 and headquartered in Martinsville, Virginia, operates as the bank holding company for Carter Bank & Trust. The bank provides a comprehensive suite of banking products and services tailored to individuals and businesses. Its deposit products include checking, savings, retirement, and money market accounts, along with certificates of deposit. The company's lending portfolio encompasses commercial loans, consumer loans (including auto, home improvement, and education financing), residential mortgages, real estate construction and acquisition loans, and home equity lines of credit. Carter Bankshares also offers credit cards and originates both fixed and variable-rate mortgage loans. Beyond traditional banking, Carter Bankshares provides services such as safe deposit boxes, direct deposit, online and mobile banking, bill pay, and ATM access. The bank also offers title insurance and treasury management services. With 69 branches across Virginia and North Carolina, Carter Bankshares focuses on building relationships within its communities while adapting to the evolving digital landscape.

What Products and Services Does CARE Offer?

• Accepts deposits into checking, savings, and money market accounts.
• Provides commercial loans to businesses.
• Offers consumer loans for automobiles, home improvements, and education.
• Originates residential mortgages.
• Provides real estate construction and acquisition loans.
• Offers home equity lines of credit.
• Issues credit cards.
• Provides online and mobile banking services.

How Does CARE Make Money?

• Generates revenue from interest earned on loans.
• Collects fees for services such as account maintenance and transactions.
• Manages risk by diversifying its loan portfolio.
• Expands its customer base through branch network and digital channels.

What Industry Does CARE Operate In?

Carter Bankshares operates in the competitive regional banking sector. The industry is characterized by increasing consolidation, technological advancements, and evolving regulatory requirements. Regional banks like Carter Bankshares face competition from larger national banks and credit unions. Key trends include the growing adoption of digital banking services and the increasing importance of cybersecurity. The regional banking sector is influenced by interest rate movements and economic conditions in its operating areas.

Who Are CARE's Key Customers?

• Individuals seeking personal banking services.
• Small and medium-sized businesses requiring commercial loans.
• Real estate developers needing construction financing.
• Homeowners seeking mortgages and home equity loans.

Carter Bankshares, Inc. (CARE) Valuation Context

Valued at $699M, CARE is classified as a small-cap stock. Analyst price targets span from $27.00 to $34.50, with a consensus of $30.75. At the current price of $31.56, that implies roughly 3% downside from the consensus target. Relative to its peer group, CARE's quantitative score of 94/100 is above the peer average of 79/100.

CARE Revenue & Earnings Trend

In Jun 2026, CARE generated $90.2M in top-line revenue, marking a sequential decrease of 30.7%. The company recorded net income of $28.9M, with diluted EPS of $1.32. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, CARE averaged $1.47 in diluted EPS.

Company Profile

Carter Bankshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Martinsville, US. The company is led by CEO Litz H. Van Dyke. CARE has traded publicly since 2007.

Return on equity for Carter Bankshares, Inc. stands at 24.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.3%, showing how much profit it generates from its asset base. CARE trades at a trailing price-to-earnings ratio of 5.37, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 43.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.14 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 14.6%, the inverse of the P/E and a quick read on earnings relative to price.

Carter Bankshares, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.62 places it in the distress zone, a signal of elevated financial risk.

Carter Bankshares, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 30.6% above estimates on average.

Wall Street analysts project Carter Bankshares, Inc. revenue of about $328.9M for fiscal 2026, with EPS near $6.04.

Over the past six months, Carter Bankshares, Inc. insiders filed 18 SEC Form 4 transactions — 8 sales and 10 purchases. On net that is roughly 41K shares acquired (about $214K) — insiders putting money in tends to read as conviction.

CARE Financials

CARE Latest News

CARE Analyst Consensus

CARE MoonshotScore

What Investors Ask About Carter Bankshares, Inc. (CARE) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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