Carter Bankshares, Inc. (CARE) stock analysis
Close on Nov 12, 2026Market cap $644.97MP/E 4.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid15 of 30 checks passed
Carter Bankshares passes 15 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 4/6
- Dividend
- 1/6
What stands out
Margin of safety over 20%
The price is 42.6% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $29.22 is below our fair value estimate of $50.92.
P/E below its 5-year median
Carter Bankshares's P/E of 4.9 is below its own 5-year median of 13.0.
P/E below the industry
Carter Bankshares's P/E of 4.9 is below the Commercial Banks median of 12.1.
What to watch
Return on equity under 15%
Return on equity was 27.9% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 3.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -12.1% a year over the last three fiscal years.
Net margin below its 5-year average
Net margin was 50.0% over the last twelve months, against a 5-year average of 174%.
Valuation6/6
P/E below its 5-year median
Carter Bankshares's P/E of 4.9 is below its own 5-year median of 13.0.
P/E below the industry
Carter Bankshares's P/E of 4.9 is below the Commercial Banks median of 12.1.
P/S below the industry
Carter Bankshares's price-to-sales of 2.48 is below the Commercial Banks median of 3.60.
P/B below the industry
Carter Bankshares's price-to-book of 1.23 is below the Commercial Banks median of 1.29.
Trading below fair value
The share price of $29.22 is below our fair value estimate of $50.92.
Margin of safety over 20%
The price is 42.6% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 3.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -12.1% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 76.9% over the last twelve months; the Commercial Banks median is 11.3%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 27.9% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 2.7%; for a bank or insurer, 1% or more is considered good.
Return on equity above the industry
Carter Bankshares's return on equity of 27.9% is above the Commercial Banks median of 11.5%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 50.0% over the last twelve months, against a 5-year average of 174%.
Net margin above the industry
Carter Bankshares's net margin of 50.0% is above the Commercial Banks median of 30.3%.
Financial health4/6
Well capitalized
Equity is 11.1% of total assets; 8% or more is a comfortable cushion.
Loans funded by deposits
Loans equal 90.3% of deposits, so lending is funded by customer deposits.
Adequate loan-loss reserve
The allowance for credit losses is 1.4% of loans; we look for at least 1%.
Efficient operations
Non-interest expense takes 46.4% of revenue; under 60% is efficient for a bank.
Deposits shrinking
Deposits fell 2.2% over the past year.
Borrowings
Needs debt and equity figures.
Dividend1/6
Pays a dividend
Carter Bankshares paid dividends worth 1.0% of the share price over the last twelve months.
Yield below Treasuries
The 1.0% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Carter Bankshares yields 1.0%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$50.92
The share price is 43% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 12.5× | 13.0× | 12.1× | $74.20 | 50% |
| P/B | 1.2× | 1.0× | 1.3× | $27.65 | 50% |
| Fair value | $50.92 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 13.0
- Commercial Banks median 12.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $5.35M
- Value traded per 1% price move
- $5.96M
Downside
Low risk
- Typical loss in a bad month
- 9.9%
- Volatility (annualized)
- 25%
- Sharpe ratio, 1 year
- 2.52
- Beta to the S&P 500 (5Y)
- 0.60
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.6% | +3.5% | +2.5% | – | |
| Net income | +27.9% | -14.5% | – | – | |
| EPS, diluted | +30.2% | -12.1% | – | – | |
| Free cash flow | +10.4% | -21.2% | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -10.0% | 7.8% | |
| Return on assets | – | – | 0.7% | |
| Capex to revenue | – | 56.3% | 39.7% | |
| Diluted shares | – | 26M | 22M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Carter Bankshares generated $271.86M from operations and spent $119.86M on capital expenditure, dividends and share buybacks. 34% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 154.4% | 0.00× | 11.83× | 7.8% |
| FY2024 | 126.3% | 0.00× | 12.47× | 6.7% |
| FY2023 | 135.4% | 0.00× | 12.82× | 6.9% |
| FY2022 | 273.4% | 0.00× | 11.33× | 13.6% |
| FY2021 | 180.7% | 0.00× | 9.81× | 7.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$31.36M
- Cash generatingOperating cash flow above zero$39.86M
- Return on assets improvedROA up on the prior year0.5% → 0.7%
- Earnings backed by cashOperating cash flow above net income$39.86M vs $31.36M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise23M → 22M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.00 → 0.00
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