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Carolina Financial

Nasdaq:CARO
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CARO
Nasdaq
$815M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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 last earnings update was 10 days ago. More info.


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CARO Share Price and Events
7 Day Returns
0.9%
NasdaqCM:CARO
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
-14%
NasdaqCM:CARO
-10.8%
US Banks
3%
US Market
CARO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Carolina Financial (CARO) 0.9% 0.5% -1.5% -14% 95.2% 329.7%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • CARO underperformed the Banks industry which returned -10.8% over the past year.
  • CARO underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
CARO
Industry
5yr Volatility vs Market

CARO Value

 Is Carolina Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Carolina Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Carolina Financial.

NasdaqCM:CARO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $29.62 * 11.1%
$3.30
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $29.62
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:CARO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (49.24%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.907 * 5.96%)
8.14%

Discounted Cash Flow Calculation for NasdaqCM:CARO using Excess Returns Model Model

The calculations below outline how an intrinsic value for Carolina Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqCM:CARO Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.1% – 8.14%) * $29.62)
$0.89
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.89 / (8.14% - 2.73%)
$16.47
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $29.62 + $16.47
$46.09
NasdaqCM:CARO Discount to Share Price
Calculation Result
Value per share (USD) From above. $46.09
Current discount Discount to share price of $36.70
= -1 x ($36.70 - $46.09) / $46.09
20.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Carolina Financial is available for.
Intrinsic value
20%
Share price is $36.7 vs Future cash flow value of $46.09
Current Discount Checks
For Carolina Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Carolina Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Carolina Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Carolina Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Carolina Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:CARO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.72
NasdaqCM:CARO Share Price ** NasdaqCM (2019-05-17) in USD $36.7
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Carolina Financial.

NasdaqCM:CARO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:CARO Share Price ÷ EPS (both in USD)

= 36.7 ÷ 2.72

13.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carolina Financial is overvalued based on earnings compared to the US Banks industry average.
  • Carolina Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Carolina Financial's expected growth come at a high price?
Raw Data
NasdaqCM:CARO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
4.8%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqCM:CARO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.47x ÷ 4.8%

2.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carolina Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Carolina Financial's assets?
Raw Data
NasdaqCM:CARO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.56
NasdaqCM:CARO Share Price * NasdaqCM (2019-05-17) in USD $36.7
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqCM:CARO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:CARO Share Price ÷ Book Value per Share (both in USD)

= 36.7 ÷ 26.56

1.38x

* Primary Listing of Carolina Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carolina Financial is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Carolina Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Carolina Financial has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CARO Future Performance

 How is Carolina Financial expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Carolina Financial expected to grow at an attractive rate?
  • Carolina Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Carolina Financial's earnings growth is positive but not above the United States of America market average.
  • Carolina Financial's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:CARO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:CARO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 4.8%
NasdaqCM:CARO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 5.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:CARO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:CARO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 192 66 4
2019-12-31 183 63 4
NasdaqCM:CARO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 172 63 60
2018-12-31 172 69 50
2018-09-30 166 22 41
2018-06-30 150 14 33
2018-03-31 135 2 28
2017-12-31 115 -9 29
2017-09-30 101 26 27
2017-06-30 97 15 25
2017-03-31 88 28 19
2016-12-31 83 29 18
2016-09-30 78 12 16
2016-06-30 73 35 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Carolina Financial's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Carolina Financial's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:CARO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Carolina Financial Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:CARO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.95 3.08 2.82 5.00
2019-12-31 2.82 2.89 2.78 5.00
NasdaqCM:CARO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.72
2018-12-31 2.28
2018-09-30 1.90
2018-06-30 1.72
2018-03-31 1.53
2017-12-31 1.75
2017-09-30 1.91
2017-06-30 1.86
2017-03-31 1.49
2016-12-31 1.45
2016-09-30 1.40
2016-06-30 1.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Carolina Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Carolina Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Carolina Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CARO Past Performance

  How has Carolina Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Carolina Financial's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Carolina Financial has delivered over 20% year on year earnings growth in the past 5 years.
  • Carolina Financial's 1-year earnings growth exceeds its 5-year average (117% vs 35.6%)
  • Carolina Financial's earnings growth has exceeded the US Banks industry average in the past year (117% vs 40.7%).
Earnings and Revenue History
Carolina Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Carolina Financial Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:CARO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 172.11 60.16 71.56
2018-12-31 171.65 49.67 71.23
2018-09-30 166.13 40.56 68.78
2018-06-30 150.12 33.34 62.49
2018-03-31 134.65 27.72 56.63
2017-12-31 114.97 28.57 50.10
2017-09-30 101.09 27.39 45.85
2017-06-30 96.62 25.33 45.18
2017-03-31 88.27 18.83 42.96
2016-12-31 83.33 17.57 41.15
2016-09-30 77.70 16.03 39.89
2016-06-30 72.96 13.97 38.39
2016-03-31 72.94 15.05 37.80
2015-12-31 71.93 14.42 37.70
2015-09-30 68.70 12.53 36.19
2015-06-30 64.09 11.05 34.33
2015-03-31 57.36 9.38 31.93
2014-12-31 53.26 8.31 29.37
2014-09-30 55.89 10.66 28.46
2014-06-30 57.00 11.06 27.57
2014-03-31 64.53 14.34 28.17
2013-12-31 72.20 16.82 29.05
2012-12-31 80.25 16.88 32.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Carolina Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Carolina Financial used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Carolina Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Carolina Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Carolina Financial has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CARO Health

 How is Carolina Financial's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Carolina Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Carolina Financial Company Filings, last reported 1 month ago.

NasdaqCM:CARO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 589.15 401.27 63.18
2018-12-31 575.29 466.17 66.17
2018-09-30 564.03 364.89 82.10
2018-06-30 551.78 400.98 88.08
2018-03-31 475.05 375.97 66.28
2017-12-31 475.38 412.92 84.06
2017-09-30 290.22 234.55 47.58
2017-06-30 281.82 224.58 47.61
2017-03-31 271.45 270.49 71.82
2016-12-31 163.19 241.81 26.57
2016-09-30 160.33 158.67 41.49
2016-06-30 155.02 170.11 50.14
2016-03-31 142.39 170.90 32.74
2015-12-31 139.86 223.77 28.57
2015-09-30 104.24 175.56 24.90
2015-06-30 100.34 203.35 31.72
2015-03-31 97.62 174.08 29.14
2014-12-31 93.70 120.58 10.74
2014-09-30 91.81 149.83 30.30
2014-06-30 89.28 105.42 28.95
2014-03-31 85.58 74.77 17.66
2013-12-31 82.23 84.90 31.78
2012-12-31 67.51 147.32 19.68
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Carolina Financial has an acceptable proportion of non-loan assets held.
  • Carolina Financial's liabilities are made up of primarily low risk sources of funding.
  • Loans at Carolina Financial are broadly funded by customer deposits.
  • Carolina Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Carolina Financial has a sufficient allowance for bad loans.
  • Carolina Financial has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Carolina Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Carolina Financial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CARO Dividends

 What is Carolina Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.98%
Current annual income from Carolina Financial dividends. Estimated to be 1% next year.
If you bought $2,000 of Carolina Financial shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Carolina Financial's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Carolina Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

Purchase Carolina Financial before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:CARO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:CARO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.39 5.00
2019-12-31 0.34 5.00
NasdaqCM:CARO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-10 0.360 0.973
2019-04-24 0.360 0.974
2019-01-24 0.320 0.898
2018-08-24 0.280 0.815
2018-08-09 0.240 0.574
2018-07-23 0.240 0.572
2018-05-10 0.240 0.559
2018-04-30 0.240 0.603
2018-03-16 0.200 0.503
2018-01-24 0.200 0.499
2017-11-09 0.200 0.533
2017-10-19 0.200 0.540
2017-07-21 0.160 0.468
2017-05-05 0.160 0.504
2017-04-24 0.160 0.520
2017-03-10 0.160 0.544
2017-01-18 0.160 0.528
2016-08-23 0.120 0.486
2016-05-05 0.120 0.639
2016-01-28 0.120 0.690
2015-10-22 0.120 0.754
2014-10-17 0.100 0.790
2014-07-18 0.083 0.794
2014-04-24 0.083 0.962
2014-02-24 0.083 0.964

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Carolina Financial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Carolina Financial only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Carolina Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Carolina Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Carolina Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Carolina Financial has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CARO Management

 What is the CEO of Carolina Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jerry Rexroad
COMPENSATION $1,342,955
AGE 58
TENURE AS CEO 7.3 years
CEO Bio

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 Chief Administrative Officer and Executive Vice President of Crescom Bank. Mr. Rexroad joined the Company in May 2008 as Executive Vice President. He served as Interim Chief Executive Officer of Carolina Financial Corpration from April 2012 to July 2013. He served as Chief Financial Officer of Coastal Investor Services, Inc., Coastal Planners Holding Corporation and Coastal Retirement Estate and Tax Planners, subsidiaries of Coastal Financial Corporation. He served as an Executive Vice President of Carolina Financial Corporation until April 2012. He served as the President of Coastal Federal Holdings Corporation. He served as the Chief Financial Officer and Executive Vice President of Coastal Financial Corporation and Coastal Federal Bank, a subsidiary of Coastal Financial Corporation. He joined Coastal Financial Corporation in April 1995 and served as its Principal Accounting Officer. He served as the Chief Financial Officer of Coastal Federal Mortgage, Coastal Investments Corporation, Coastal Real Estate Investment Corporation and Coastal Mortgage Bankers and Realty Company Inc., subsidiaries of Coastal Financial Corporation. Mr. Rexroad began his career in 1982 with Peat, Marwick, Mitchell and Co., a predecessor to the international accounting firm KPMG LLP. He served as a Partner with KPMG LLP since 1994, where he was Partner in charge of the Financial Institutions practice in South Carolina. He serves on the Junior Achievement Board of Directors of Horry County. He serves as the Chairman of Deacons at Grand Strand Baptist Church. He served as the Chairman of the Board of Directors for Junior Achievement of Horry County and Chairman of Junior Achievement of Greenville. He has been a Director of Myrtle Beach Regional Economic Development Corp since May 2013 and Carolina Financial Corporation since 2012. He serves as a Director of PowerHouse Ministries, Inc. He serves as a Director of Coastal Investor Services, Inc., Coastal Planners Holding Corporation, Coastal Retirement Estate and Tax Planners. He served as a Director of Coastal Mortgage Bankers and Realty Company Inc., Coastal Federal Mortgage, Coastal Real Estate Investment Corporation and Coastal Investments services Inc. He is a Certified Public Accountant and is a Member of the AICPA and SCACPA. Mr. Rexroad is a graduate of Bob Jones University, cum laude.

CEO Compensation
  • Jerry's compensation has been consistent with company performance over the past year.
  • Jerry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Carolina Financial management team in years:

8.3
Average Tenure
57.5
Average Age
  • The average tenure for the Carolina Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jerry Rexroad

TITLE
President
COMPENSATION
$1M
AGE
58
TENURE
7.3 yrs

Bill Gehman

TITLE
Executive VP & CFO
COMPENSATION
$561K
AGE
57
TENURE
7.3 yrs

David Morrow

TITLE
Executive VP & Director
COMPENSATION
$832K
AGE
68
TENURE
15.3 yrs

Melton Huggins

TITLE
Executive VP & Secretary
COMPENSATION
$599K
AGE
55
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the Carolina Financial board of directors in years:

12.8
Average Tenure
64.5
Average Age
  • The average tenure for the Carolina Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Bud Watts

TITLE
Chairman of the Board
COMPENSATION
$97K
AGE
56
TENURE
2.1 yrs

Jerry Rexroad

TITLE
President
COMPENSATION
$1M
AGE
58
TENURE
7.3 yrs

David Morrow

TITLE
Executive VP & Director
COMPENSATION
$832K
AGE
68
TENURE
18.3 yrs

Robert Moïse

TITLE
Director
COMPENSATION
$68K
AGE
70
TENURE
23.3 yrs

Daniel Isaac

TITLE
Director
COMPENSATION
$64K
AGE
66
TENURE
3 yrs

W. Brandon

TITLE
Director
COMPENSATION
$54K
AGE
54
TENURE
18.3 yrs

Robert Clawson

TITLE
Director
COMPENSATION
$71K
AGE
76
TENURE
23.3 yrs

Jeffery Deal

TITLE
Director
COMPENSATION
$63K
AGE
63
TENURE
23.3 yrs

Thom Penney

TITLE
Director
COMPENSATION
$61K
AGE
67
TENURE
6.3 yrs

Gary Griffin

TITLE
Director
COMPENSATION
$161K
AGE
63
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • Carolina Financial insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell David Morrow Individual 09. May 19 10. May 19 -4,000 $37.12 $-148,300
17. May 19 Sell David Morrow Individual 06. May 19 08. May 19 -6,000 $38.12 $-225,900
13. Mar 19 Sell Melton Huggins Individual 12. Mar 19 12. Mar 19 -224 $32.24 $-7,221
13. Mar 19 Sell Melton Huggins Individual 12. Mar 19 12. Mar 19 -4,776 $36.22 $-172,147
11. Feb 19 Sell Michael Leddy Individual 08. Feb 19 08. Feb 19 -20,000 $34.50 $-690,000
31. Jan 19 Sell Robert Moïse Individual 30. Jan 19 30. Jan 19 -5,500 $32.92 $-181,060
08. Jun 18 Sell Jerold Rexroad Individual 06. Jun 18 06. Jun 18 -48,600 $42.25 $-2,053,350
08. Jun 18 Sell Fowler Williams Individual 06. Jun 18 06. Jun 18 -3,750 $42.25 $-158,438
08. Jun 18 Sell David Morrow Individual 06. Jun 18 06. Jun 18 -25,000 $42.25 $-1,056,250
08. Jun 18 Sell Jeffery Deal Individual 06. Jun 18 06. Jun 18 -9,000 $42.25 $-380,250
08. Jun 18 Sell William Gehman Individual 06. Jun 18 06. Jun 18 -10,000 $42.25 $-422,500
24. May 18 Buy Daniel Isaac Individual 23. May 18 23. May 18 3,000 $42.64 $127,920
X
Management checks
We assess Carolina Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Carolina Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CARO News

Simply Wall St News

Carolina Financial Corporation (NASDAQ:CARO) Has Got What It Takes To Be An Attractive Dividend Stock

Could Carolina Financial Corporation (NASDAQ:CARO) be an attractive dividend share to own for the long haul? … Investors might not know much about Carolina Financial's dividend prospects, even though it has been paying dividends for the last five years and offers a 1.0% yield. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Carolina Financial has grown its earnings per share at 8.4% per annum over the past five years. A low payout ratio and strong historical earnings growth suggests Carolina Financial has been effectively reinvesting in its business. We think this generally bodes well for its dividend prospects. We'd also point out that Carolina Financial issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Here's Why I Think Carolina Financial (NASDAQ:CARO) Is An Interesting Stock

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … I note that Carolina Financial's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. … While we note Carolina Financial's EBIT margins were flat over the last year, revenue grew by a solid 28% to US$172m.

Simply Wall St -

Do Insiders Own Lots Of Shares In Carolina Financial Corporation (NASDAQ:CARO)?

The big shareholder groups in Carolina Financial Corporation (NASDAQ:CARO) have power over the company. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … Carolina Financial has a market capitalization of US$810m, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Does The Carolina Financial Corporation (NASDAQ:CARO) Share Price Fall With The Market?

In finance, Beta is a measure of volatility. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

Is It Too Late To Consider Buying Carolina Financial Corporation (NASDAQ:CARO)?

Carolina Financial Corporation (NASDAQ:CARO), operating in the financial services industry based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Carolina Financial’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Three Understated Metrics For Carolina Financial Corporation (NASDAQ:CARO) You Should Know

As a small-cap finance stock with a market capitalisation of US$819m, the risk and profitability of Carolina Financial Corporation (NASDAQ:CARO) are largely tied to the underlying economic growth of the region it operates in US. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Carolina Financial to vulnerabilities. … Today we will be measuring Carolina Financial’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Is Carolina Financial Corporation (NASDAQ:CARO) Expensive For A Reason? A Look At The Intrinsic Value

This is because the rules banks face are different to other companies, which can impact the way we forecast their cash flows. … Banks, for example, must hold certain levels of tiered capital in order to maintain a safe cash cushion.

Simply Wall St -

Should You Be Tempted To Sell Carolina Financial Corporation (NASDAQ:CARO) Because Of Its P/E Ratio?

We'll show how you can use Carolina Financial Corporation's (NASDAQ:CARO) P/E ratio to inform your assessment of the investment opportunity. … Carolina Financial has a P/E ratio of 17.68, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Should Investors React To Carolina Financial Corporation's (NASDAQ:CARO) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jerry Rexroad's Compensation Compare With Similar Sized Companies. … Our data indicates that Carolina Financial Corporation is worth US$693m, and total annual CEO compensation is US$1.3m.

Simply Wall St -

Need To Know: Carolina Financial Corporation (NASDAQ:CARO) Insiders Have Been Selling Shares

Carolina Financial Insider Transactions Over The Last Year. … In total, Carolina Financial insiders sold more than they bought over the last year … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

CARO Company Info

Description

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.

Details
Name: Carolina Financial Corporation
CARO
Exchange: NasdaqCM
Founded: 1996
$814,870,211
22,203,548
Website: http://www.haveanicebank.com
Address: Carolina Financial Corporation
288 Meeting Street,
Charleston,
South Carolina, 29401,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM CARO Common Stock Nasdaq Capital Market US USD 22. Jul 2013
DB 95C Common Stock Deutsche Boerse AG DE EUR 22. Jul 2013
Number of employees
Current staff
Staff numbers
754
Carolina Financial employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 03:01
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/29
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.