Carter Bankshares, Inc. (CARE)
Valuation Overview•Is Carter Bankshares, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 54/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CARE demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 15.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $64.5M | +6.2% | — | — | +4.5% | |
| EBITDA | $11.1M | — | -16.1% | — | — | |
| Net Income | $8.5M | +27.9% | -14.5% | — | -2.2% | |
| EPS (Diluted) | $0.39 | +32.1% | -11.6% | — | -0.6% | |
| Free Cash Flow | $7.1M | +10.4% | -21.2% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 61.2% | 60.3% | 70.4% | 65.5% |
| Operating Margin | 15.9% | 14.0% | 19.9% | 9.7% |
| Net Margin | 12.5% | 11.2% | 16.4% | 8.8% |
| FCF Margin | 11.9% | 14.0% | 24.5% | 21.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $3.91 | $0.40 | -89.8% | ||
| Q1'26 | $0.33 | $0.41 | +24.2% | ||
| Q4'25 | $0.39 | $0.26 | -33.3% | ||
| Q3'25 | $0.31 | $0.41 | +32.3% | ||
| Q2'25 | $0.30 | $0.32 | +6.7% | ||
| Q1'25 | $0.21 | $0.37 | +76.2% | ||
| Q4'24 | $0.22 | $0.24 | +9.1% | ||
| Q3'24 | $0.21 | $0.21 | +0.0% |
Total return is +86.8% (1Y), outperforming the benchmark by +61.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +59.9% | +50.6% | — |
| 1Y | +86.8% | +61.8% | +0.6% |
| 3YCAGR | +26.8% | +7.2% | +0.7% |
| 5YCAGR | +19.1% | +5.4% | +0.8% |
| 10YCAGR | +9.6% | -4.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Carter Bankshares, Inc. (CARE) valuation, health, and returns.
Based on peer relative multiples, Carter Bankshares, Inc. appears Slightly cheap versus peers compared to industry peers.
Carter Bankshares, Inc. has multiple valuation anchors: Peer Relative Fair Value: $33.25 | Wall Street Analyst Target: $28.50 (implying -7.9% upside). A convergence of these signals offers higher conviction.
Carter Bankshares, Inc. displays fair financial health with a composite quality score of 54/100, supported by a Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 5.7%.
Carter Bankshares, Inc. returns capital via buybacks instead of dividends, carrying a 2.9% buyback yield and reducing outstanding shares by -3.4% in the last 12 months.
Carter Bankshares, Inc.'s current growth trajectory is Accelerating. The company achieved +6.2% 1Y revenue growth and +32.1% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 5 analysts, beating EPS expectations in 50% of recent quarters with a -1-quarter streak. The consensus price target represents a -7.9% change from current levels.
Investment risks for Carter Bankshares, Inc. include: -15.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.50x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.