📊 CARE Key Takeaways
Investment Thesis
Carter Bankshares exhibits severe fundamental deterioration with revenue collapsing 91.3% YoY despite modest net income growth, indicating reliance on one-time gains rather than operational performance. The extremely high net margin (154.4%) and operating margin (196.9%) are unsustainable and signal accounting anomalies or extraordinary items masking core business weakness. Deteriorating asset quality metrics and weak interest coverage (1.6x) combined with declining revenue suggest the company faces structural headwinds in its banking operations.
CARE Strengths
- Positive free cash flow generation of $31.8M demonstrates cash conversion ability
- Low leverage with 0.00x debt-to-equity ratio provides financial flexibility
- Modest net income growth (+1.2% YoY) maintained despite severe revenue decline
CARE Risks
- Catastrophic 91.3% revenue decline YoY indicates loss of major client, line of business, or accounting restatement
- Unsustainably high profit margins (154.4% net, 196.9% operating) suggest one-time gains or non-operating items masking poor core operations
- Weak interest coverage ratio of 1.6x and low ROA of 0.6% indicate challenged asset quality and operational efficiency in banking business
- 24 Form 4 filings in 90 days may indicate insider selling or compensation adjustments amid operational challenges
Key Metrics to Watch
- Quarterly revenue trends to confirm whether decline reverses or continues deteriorating
- Net interest margin and loan loss provisions to assess asset quality and reserve adequacy
- Operating cash flow sustainability relative to net income to identify quality of earnings
CARE Financial Metrics
💡 AI Analyst Insight
The 156.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CARE Profitability Ratios
CARE vs Finance Sector
How Carter Bankshares, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CARE Balance Sheet & Liquidity
CARE 5-Year Financial Trend
5-Year Trend Summary: Carter Bankshares, Inc.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $1.00 reflects profitable operations.
CARE Growth Metrics (YoY)
CARE Capital Allocation
CARE SEC Filings
Access official SEC EDGAR filings for Carter Bankshares, Inc. (CIK: 0001829576)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773422561.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773421178.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773420903.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773420676.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773420600.xml | View → |
❓ Frequently Asked Questions about CARE
What is the AI rating for CARE?
Carter Bankshares, Inc. (CARE) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARE's key strengths?
Positive free cash flow generation of $31.8M demonstrates cash conversion ability. Low leverage with 0.00x debt-to-equity ratio provides financial flexibility.
What are the risks of investing in CARE?
Catastrophic 91.3% revenue decline YoY indicates loss of major client, line of business, or accounting restatement. Unsustainably high profit margins (154.4% net, 196.9% operating) suggest one-time gains or non-operating items masking poor core operations.
What is CARE's revenue and growth?
Carter Bankshares, Inc. reported revenue of $20.3M.
Does CARE pay dividends?
Carter Bankshares, Inc. does not currently pay dividends.
Where can I find CARE SEC filings?
Official SEC filings for Carter Bankshares, Inc. (CIK: 0001829576) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARE's EPS?
Carter Bankshares, Inc. has a diluted EPS of $1.38.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.