NasdaqGS:CARE

Stock Analysis Report

Executive Summary

Carter Bank & Trust provides a range of retail and commercial banking products and services in Virginia and North Carolina.

Rewards

Earnings are forecast to grow 13.47% per year

Earnings grew by 669.4% over the past year

Risk Analysis

No risks detected for CARE from our risk checks.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Carter Bank & Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CARE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

CARE

1.4%

US Banks

0.7%

US Market


1 Year Return

34.3%

CARE

26.9%

US Banks

21.1%

US Market

Return vs Industry: CARE exceeded the US Banks industry which returned 26.9% over the past year.

Return vs Market: CARE exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

CAREIndustryMarket
7 Day4.5%1.4%0.7%
30 Day10.4%4.0%2.3%
90 Day14.3%9.8%5.0%
1 Year34.3%34.3%30.7%26.9%23.7%21.1%
3 Year72.2%72.2%34.0%24.6%47.0%37.4%
5 Year91.0%80.8%75.7%56.1%65.7%47.5%

Price Volatility Vs. Market

How volatile is Carter Bank & Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Carter Bank & Trust undervalued compared to its fair value and its price relative to the market?

22.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CARE ($22.42) is trading above our estimate of fair value ($3.02)

Significantly Below Fair Value: CARE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CARE is poor value based on its PE Ratio (22.4x) compared to the Banks industry average (12.9x).

PE vs Market: CARE is poor value based on its PE Ratio (22.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: CARE is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CARE is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Carter Bank & Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARE's forecast earnings growth (13.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CARE's earnings (13.5% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: CARE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CARE's revenue (6.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CARE's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CARE's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Carter Bank & Trust performed over the past 5 years?

-32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARE has high quality earnings.

Growing Profit Margin: CARE's current net profit margins (21.6%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: CARE's earnings have declined by -32.1% per year over the past 5 years.

Accelerating Growth: CARE's earnings growth over the past year (669.4%) exceeds its 5-year average (-32.1% per year).

Earnings vs Industry: CARE earnings growth over the past year (669.4%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: CARE's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Carter Bank & Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CARE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CARE's debt is covered by short term assets (assets are 202.6x debt).


Financial Institutions Analysis

Asset Level: CARE's level of assets compared to its equity is low.

Allowance for Bad Loans: CARE has a low allowance for bad loans.

Low Risk Liabilities: CARE's liabilities are made up of primarily low risk sources of funding.

Loan Level: CARE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CARE's loans are broadly funded by customer deposits.

Level of Bad Loans: CARE has an appropriate level of bad loans (1.62%)


Next Steps

Dividend

What is Carter Bank & Trust's current dividend yield, its reliability and sustainability?

0.53%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CARE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CARE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CARE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CARE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CARE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CARE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Carter Bank & Trust's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Litz Van Dyke (55yo)

2.7yrs

Tenure

US$735,445

Compensation

Mr. Litz H. Van Dyke has been the Chief Executive Officer and Director of Carter Bank & Trust since April 18, 2017. Mr. Van Dyke served as Executive Vice President of Carter Bank & Trust since July 27, 201 ...


CEO Compensation Analysis

Compensation vs Market: Litz's total compensation ($USD735.45K) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Litz's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CARE's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

71yo

Average Age

Experienced Board: CARE's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$9,89011 Sep 19
James Haskins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max PriceUS$19.78
SellUS$19,13007 Aug 19
James Haskins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000
Max PriceUS$19.13
SellUS$137,06015 May 19
Millard's Machinery Inc
EntityCompany
Shares7,000
Max PriceUS$19.58
SellUS$42821 Feb 19
Bradford Langs
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Strategy Officer
Shares25
Max PriceUS$17.10
SellUS$8,52511 Feb 19
James Haskins
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max PriceUS$17.05
BuyUS$33,82031 Jan 19
Wendy Bell
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max PriceUS$16.91
BuyUS$35,69129 Jan 19
Wendy Bell
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,200
Max PriceUS$16.22

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Litz Van Dyke (55yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$735.45k
  • Wendy Bell (55yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$501.17k
  • Jane Davis (56yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 2.4yrs
    • Compensation: US$321.46k
  • Phyllis Karavatakis (63yo)

    Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: US$503.07k
  • Dawn DeHart

    Senior VP & Director of Community Development

    • Tenure: 2.7yrs
  • Rich Spiker (52yo)

    Executive VP & Chief Lending Officer

    • Tenure: 2.1yrs
  • Matt Speare (52yo)

    Executive VP & Chief Information Officer

    • Tenure: 2.4yrs
    • Compensation: US$494.28k
  • Brad Langs (53yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 2.5yrs
    • Compensation: US$532.37k
  • Kim Adkins

    VP & Director of Marketing

    • Tenure: 0yrs
  • Paul Carney

    Senior VP & Director of Human Resources

    • Tenure: 1yrs

Board Members

  • George Lester (80yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$36.75k
  • Litz Van Dyke (55yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$735.45k
  • Greg Feldmann (61yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$38.00k
  • Charles Hall (77yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$33.00k
  • Joseph Pigg (83yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$25.00k
  • Phyllis Karavatakis (63yo)

    Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: US$503.07k
  • Lanny Kyle (65yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$35.00k
  • Chester Gallimore (82yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$28.00k
  • James Haskins (78yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$55.75k
  • Michael Bird (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$33.25k

Company Information

Carter Bank & Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carter Bank & Trust
  • Ticker: CARE
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$589.827m
  • Shares outstanding: 26.31m
  • Website: https://www.carterbankandtrust.com

Number of Employees


Location

  • Carter Bank & Trust
  • 1300 Kings Mountain Road
  • Martinsville
  • Virginia
  • 24112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CARENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2007

Biography

Carter Bank & Trust provides a range of retail and commercial banking products and services in Virginia and North Carolina. It accepts checking, savings, retirement, and money market accounts, as well as l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 00:05
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.