Carter Bankshares Inc. Common Stock (CARE)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• High return on equity of 23.9% demonstrating efficient capital deployment
• Superior net profit margin of 33.1% indicating pricing power and operational efficiency

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Carter Bankshares Inc. Common Stock is a micro-cap financial services company valued at $533 million. The business generates $259 million in annual revenue with a 33.1% net margin. From a quality standpoint, Carter shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 5.4x, with offers a 47% margin of safety vs Graham Number of $46. Growth dynamics show revenue growing at 15.0% and profit growth of 2.4%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Carter's consistent 24% ROE at just 5x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer