Carolina Financial Corporation operates as a holding company for CresCom Bank that provides a range of commercial and retail banking financial services in South Carolina and North Carolina.
Excellent balance sheet and good value.
Share Price & News
How has Carolina Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CARO's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CARO exceeded the US Banks industry which returned -34.8% over the past year.
Return vs Market: CARO underperformed the US Market which returned -15.9% over the past year.
Price Volatility Vs. Market
How volatile is Carolina Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 months ago | Simply Wall StShould You Be Concerned About Carolina Financial Corporation's (NASDAQ:CARO) Historical Volatility?
5 months ago | Simply Wall StShould You Worry About Carolina Financial Corporation's (NASDAQ:CARO) CEO Pay?
5 months ago | Simply Wall StCarolina Financial Corporation (NASDAQ:CARO) Has Got What It Takes To Be An Attractive Dividend Stock
Is Carolina Financial undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CARO ($24.72) is trading below our estimate of fair value ($31.36)
Significantly Below Fair Value: CARO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CARO is poor value based on its PE Ratio (8.7x) compared to the Banks industry average (8.5x).
PE vs Market: CARO is good value based on its PE Ratio (8.7x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: CARO is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: CARO is overvalued based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).
How is Carolina Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CARO's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).
Earnings vs Market: CARO's earnings (10.7% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: CARO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CARO's revenue (10.1% per year) is forecast to grow faster than the US market (7% per year).
High Growth Revenue: CARO's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CARO's Return on Equity is forecast to be low in 3 years time (9.4%).
How has Carolina Financial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CARO has high quality earnings.
Growing Profit Margin: CARO's current net profit margins (34.1%) are higher than last year (28.9%).
Past Earnings Growth Analysis
Earnings Trend: CARO's earnings have grown significantly by 39.5% per year over the past 5 years.
Accelerating Growth: CARO's earnings growth over the past year (26.3%) is below its 5-year average (39.5% per year).
Earnings vs Industry: CARO earnings growth over the past year (26.3%) exceeded the Banks industry 10.9%.
Return on Equity
High ROE: CARO's Return on Equity (8.4%) is considered low.
How is Carolina Financial's financial position?
Financial Position Analysis
Short Term Liabilities: CARO's short term assets ($183.6M) do not cover its short term liabilities ($3.9B).
Long Term Liabilities: CARO's short term assets ($183.6M) exceed its long term liabilities ($74.1M).
Debt to Equity History and Analysis
Debt Level: CARO's debt to equity ratio (66.7%) is considered high.
Reducing Debt: CARO's debt to equity ratio has reduced from 129.3% to 66.7% over the past 5 years.
Debt Coverage: CARO's debt is not well covered by operating cash flow (11.6%).
Interest Coverage: Insufficient data to determine if CARO's interest payments on its debt are well covered by EBIT.
What is Carolina Financial's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CARO's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: CARO's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (5.82%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CARO has been paying a dividend for less than 10 years.
Growing Dividend: CARO's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.7%), CARO's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CARO's dividends in 3 years are forecast to be thoroughly covered by earnings (13.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jerry Rexroad (59yo)
Mr. Jerold L. Rexroad, also known as Jerry, CPA has been the Chief Executive Officer and President of Carolina Financial Corporation since 2012. Mr. Rexroad serves as Executive Chairman of the Board of Cre ...
CEO Compensation Analysis
Compensation vs Market: Jerry's total compensation ($USD1.34M) is below average for companies of similar size in the US market ($USD3.29M).
Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||8.25yrs||US$560.95k||0.18% $1.2m|
|Executive VP & Director||19.25yrs||US$831.89k||0.45% $3.1m|
|Executive VP & Secretary||10.25yrs||US$598.72k||0.23% $1.6m|
Experienced Management: CARO's management team is seasoned and experienced (9.3 years average tenure).
|Executive VP & Director||19.25yrs||US$831.89k||0.45% $3.1m|
|Independent Chairman of the Board||3yrs||US$96.67k||0.29% $2.0m|
|Independent Director||3.08yrs||US$161.29k||0.090% $631.3k|
|Independent Director||24.25yrs||US$67.88k||0.48% $3.4m|
|Independent Director||3.92yrs||US$64.03k||0.32% $2.3m|
|Independent Director||7.25yrs||US$61.15k||0.13% $913.1k|
|Independent Director||19.25yrs||US$53.63k||0.63% $4.4m|
|Independent Director||24.25yrs||US$70.78k||0.67% $4.7m|
|Independent Director||24.25yrs||US$63.25k||0.068% $473.9k|
Experienced Board: CARO's board of directors are seasoned and experienced ( 13.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Carolina Financial Corporation's company bio, employee growth, exchange listings and data sources
- Name: Carolina Financial Corporation
- Ticker: CARO
- Exchange: NasdaqCM
- Founded: 1996
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$700.868m
- Shares outstanding: 24.71m
- Website: https://www.haveanicebank.com
Number of Employees
- Carolina Financial Corporation
- 288 Meeting Street
- South Carolina
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CARO||NasdaqCM (Nasdaq Capital Market)||Yes||Common Stock||US||USD||Jul 2013|
|95C||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 2013|
Carolina Financial Corporation operates as a holding company for CresCom Bank that provides a range of commercial and retail banking financial services in South Carolina and North Carolina. The company operates through three segments: Community Banking, Wholesale Mortgage Banking, and Other. It offers noninterest-bearing demand accounts, interest-bearing demand and savings accounts, money market accounts, time deposits, and certificates of deposit. The company also provides commercial and residential real estate mortgage loans, real estate construction loans, commercial and industrial loans, commercial leases, and consumer loans to individuals, small to medium-sized businesses, and professional firms. In addition, it offers mortgage banking services comprising orrespondent/wholesale mortgage and loan servicing. The company operates through a network of 61 full service branches and 2 loan production offices located in South and North Carolina. Carolina Financial Corporation was incorporated in 1996 and is based in Charleston, South Carolina.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/09 03:46|
|End of Day Share Price||2020/04/08 00:00|
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.