A Business at a Glance
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Carter Bankshares, Inc. (the “Company”) is a holding company headquartered in Martinsville, Virginia with assets of $4.7 billion at December 31, 2024. The Company is the parent company of its wholly owned subsidiary, Carter Bank & Trust (the “Bank”). The Bank is an Federal Deposit Insurance Corporation (“FDIC”) insured, Virginia state-chartered commercial bank which operates 65 branches in Virginia and North Carolina. The Bank provides a full range of retail and commercial financial products and services and insurance products. In this Annual Report on Form 10-K, unless the context suggests otherwise, the terms “we,” “us” and “our” refer to the Company and its subsidiaries, including the Bank. History and Holding Company Reorganization The Bank commenced business on December 29, 2006, following the effectiveness of the concurrent merger of ten banking institutions. The ten merged banks and their respective main office locations were Blue Ridge Bank, N.A.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 148M | 136M | 141M | 162M | 140M | - |
| Net Income | 31M | 25M | 23M | 50M | 32M | -46M |
| EPS | $1.36 | $1.06 | $1.00 | $2.03 | $1.19 | $-1.74 |
| Free Cash Flow | 31M | 29M | 37M | 65M | 69M | -2.4M |
| ROIC | 0.0% | 27.3% | 18.9% | 20.3% | 12.7% | -4.7% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 11.12 | 11.85 | 11.79 | 9.14 | 8.49 |
| Dividends/Share | $0.00 | - | - | - | - | $0.14 |
| Operating Income | 0 | 126M | 81M | 82M | 58M | -9.3M |
| Operating Margin | 0.0% | 93.0% | 57.9% | 50.7% | 41.7% | - |
| ROE | 7.5% | 6.7% | 6.7% | 15.3% | 7.8% | -10.4% |
| Shares Outstanding | 22M | 23M | 23M | 25M | 27M | 26M |
| Metric | 2020 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| Revenue | N/A | 140M | 162M | 141M | 136M | 148M |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | -9.3M | 58M | 82M | 81M | 126M | 0 |
| Op. Margin | N/A | 41.7% | 50.7% | 57.9% | 93.0% | 0.0% |
| Net Income | -46M | 32M | 50M | 23M | 25M | 31M |
| Net Margin | N/A | 22.6% | 31.0% | 16.6% | 18.1% | 21.1% |
| Non-Recurring | 62M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||
| ROIC | -4.7% | 12.7% | 20.3% | 18.9% | 27.3% | 0.0% |
| ROE | -10.4% | 7.8% | 15.3% | 6.7% | 6.7% | 7.5% |
| ROA | -1.1% | 0.8% | 1.2% | 0.5% | 0.5% | 32.7% |
| Cash Flow | ||||||
| Op. Cash Flow | 7.7M | 78M | 71M | 47M | 37M | 39M |
| Free Cash Flow | -2.4M | 69M | 65M | 37M | 29M | 31M |
| Owner Earnings | 546K | 70M | 63M | 39M | 28M | 30M |
| CapEx | 10M | 8.5M | 5.9M | 9.8M | 8.1M | 8.1M |
| Maint. CapEx | 6.1M | 6.2M | 6.1M | 6.2M | 7.1M | 7.1M |
| Growth CapEx | 4.0M | 2.3M | 0 | 3.5M | 1.1M | 1.1M |
| D&A | 6.1M | 6.2M | 6.1M | 6.2M | 7.1M | 7.1M |
| CapEx/OCF | 131.4% | 10.9% | 8.3% | 21.0% | 22.0% | 20.7% |
| Capital Allocation | ||||||
| Dividends Paid | 3.7M | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | 1.4% | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 157K | 43M | 16M | 0 | 0 |
| Buyback Yield | N/A | 0.0% | 10.6% | 4.6% | N/A | 0.0% |
| Stock-Based Comp | 1.0M | 1.0M | 1.3M | 1.6M | 1.8M | 1.8M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | 0 |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 8.49 | 9.14 | 11.79 | 11.85 | 11.12 | 0.00 |
| Interest Coverage | -0.3 | 2.6 | 4.0 | 1.5 | 1.3 | 1.3 |
| Equity | 440M | 408M | 329M | 351M | 384M | 413M |
| Total Assets | 4.2B | 4.1B | 4.2B | 4.5B | 4.7B | 95M |
| Total Liabilities | 3.7B | 3.7B | 3.9B | 4.2B | 4.3B | 38M |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 255M | 235M | 286M | 309M | 334M | 334M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | ||||||
| EPS | -1.74 | 1.19 | 2.03 | 1.00 | 1.06 | 1.36 |
| Owner EPS | 0.02 | 2.65 | 2.57 | 1.66 | 1.22 | 1.38 |
| Book Value | 16.70 | 15.35 | 13.31 | 15.02 | 16.61 | 18.69 |
| Cash Flow/Share | 0.29 | 2.92 | 2.87 | 2.00 | 1.60 | 1.73 |
| Dividends/Share | 0.14 | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 26.4M | 26.5M | 24.7M | 23.4M | 23.1M | 22.1M |
| Valuation | ||||||
| P/E Ratio | N/A | 12.5 | 8.1 | 15.2 | 16.6 | 18.0 |
| P/FCF | N/A | 5.7 | 6.2 | 9.6 | 14.1 | 17.4 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 0.7 | 1.0 | 1.2 | 1.0 | 1.1 | 1.3 |
| Price/Sales | N/A | 2.5 | 2.5 | 2.4 | 2.6 | 3.7 |
| FCF Yield | -0.8% | 17.4% | 16.0% | 10.4% | 7.1% | 5.8% |
| Market Cap | 290M | 396M | 405M | 355M | 407M | 541M |
| Avg. Price | 10.22 | 13.33 | 16.12 | 14.32 | 15.25 | 24.49 |
| Year-End Price | 11.00 | 14.92 | 16.40 | 15.19 | 17.61 | 24.49 |
Carter Bankshares, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
Carter Bankshares, Inc. trades at 18.0x trailing earnings, compared to its 15-year median P/E of 13.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 17.4x vs a median of 7.9x. The company's 5-year average ROIC is 14.9%. At current prices, the estimated annualized return to fair value is +18.7%.
Carter Bankshares, Inc. (CARE) has a current P/E ratio of 18.0, compared to its historical median P/E of 13.9. The stock is currently considered Expensive based on its historical valuation range.
Carter Bankshares, Inc. (CARE) has a 5-year average return on invested capital (ROIC) of 14.9%. This indicates solid capital allocation.
Carter Bankshares, Inc. (CARE) has a market capitalization of $541M. It is classified as a small-cap stock.
Carter Bankshares, Inc. (CARE) does not currently pay a regular dividend.
Based on historical P/E analysis, Carter Bankshares, Inc. (CARE) appears expensive. The current P/E of 18.0 is 30% above its historical median of 13.9. The estimated fair value CAGR (P/E method) is 13.6%.
Carter Bankshares, Inc. (CARE) operates in the National Commercial Banks industry, within the Financials sector.
Carter Bankshares, Inc. (CARE) reported annual revenue of $136 million in its most recent fiscal year, based on SEC EDGAR filings.
Carter Bankshares, Inc. (CARE) has a net profit margin of 18.1%. This is a healthy margin.
Carter Bankshares, Inc. (CARE) generated $29 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Carter Bankshares, Inc. (CARE) has a debt-to-equity ratio of 11.12. This indicates higher leverage, which may increase financial risk.
Carter Bankshares, Inc. (CARE) reported earnings per share (EPS) of $1.06 in its most recent fiscal year.
Carter Bankshares, Inc. (CARE) has a return on equity (ROE) of 6.7%. This indicates moderate shareholder returns.
The Ledger Terminal provides 5 years of financial data for Carter Bankshares, Inc. (CARE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Carter Bankshares, Inc. (CARE) has a book value per share of $16.61, based on its most recent annual SEC filing.