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America's Car-Mart (CRMT)
NASDAQ:CRMT
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America's Car-Mart
(NASDAQ:CRMT)
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Rating:49Neutral
Price Target:
$13.50
▲(11.11% Upside)
Action:ReiteratedDate:03/14/26
The score is held down primarily by weak financial performance (TTM revenue decline, steep margin compression, and a large net loss) and a strongly bearish technical trend (price well below all major moving averages with negative MACD). Offsetting factors include improved liquidity/funding actions and some operational/credit improvements discussed on the earnings call, but valuation support is limited given negative earnings and no dividend yield provided.
Positive Factors
Stronger liquidity position
A materially rebuilt cash balance provides a durable liquidity buffer enabling inventory buys, working capital and operational flexibility while the company stabilizes funding. This reduces short‑term refinancing pressure and supports recovery of origination capacity once structural funding is resolved.
Recent capital markets access
Successful execution of a term loan and an ABS in a stressed subprime market demonstrates the firm's ability to access institutional funding, diversify its capital stack, and secure multi-year financing options, which materially strengthens funding stability and supports medium-term originations.
Improving unit economics
Higher gross profit per unit reflects improved pricing, better sourcing or cost control that is durable at the unit level. This structural uplift helps margins recover without full volume normalization and partially offsets pressure from elevated financing costs while volumes are constrained.
Negative Factors
Revenue decline and large TTM loss
Sustained top-line decline and a substantial trailing‑twelve‑month GAAP loss indicate structural pressure on core used‑car retail and finance margins. Persistent revenue and margin weakness undermines return on equity, limits reinvestment, and increases the time required to restore normalized profitability.
Origination constrained by funding gap
Dependency on a revolving warehouse facility is a structural constraint: until stakeholders align on that facility, the company must pace purchases against cash, capping unit origination and revenue. This funding bottleneck limits scalable growth and prolongs recovery even with operational improvements.
Elevated funding costs and leverage impact
Substantial debt and meaningful interest expense relative to sales structurally compress margins and cash flow available for reinvestment. High funding costs increase refinancing risk and mean improvements in ABS/residual mix are required to materially lower cost of capital and restore scalable profitability.
America's Car-Mart (CRMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.87M
Dividend YieldN/A
Average Volume (3M)198.35K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth2.07%
EPS Growth-117.51%
CountryUS
Employees2,280
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-9.25
Shares Outstanding8,302,450
10 Day Avg. Volume252,350
30 Day Avg. Volume198,354
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.63
Price to Sales (P/S)0.26
P/FCF Ratio-6.78
Enterprise Value/Market Cap9.27
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit2.30
Enterprise Value/Ebitda44.39
Forecast
1Y Price Target
$14.00Price Target Upside15.23% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-13.89
Revenue Forecast (FY)$1.33B
America's Car-Mart Business Overview & Revenue Model
Company DescriptionAmerica's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2022, the company operated 154 dealerships in the South-Central United States. The company was founded in 1981 and is based in Rogers, Arkansas.
How the Company Makes MoneyAmerica's Car-Mart generates revenue primarily through the sale of used vehicles, as well as the associated financing services offered to its customers. The company typically sells vehicles at a markup from their wholesale purchase price, allowing for profit margins on each transaction. A significant portion of its revenue is derived from financing agreements, where customers can choose to finance their vehicle purchases directly through Car-Mart. These financing agreements often include higher interest rates compared to traditional lenders, contributing to additional revenue. Furthermore, the company benefits from ancillary services such as vehicle warranties and insurance products. Key partnerships with financial institutions and insurance providers enhance their product offerings, enabling Car-Mart to build a comprehensive service model that increases customer retention and drives repeat business.
America's Car-Mart Key Performance Indicators (KPIs)
Any
Revenue By Type
Shows how revenue is generated across different business segments, highlighting which areas drive growth and profitability. This can indicate strategic focus and market demand for specific offerings.
Shows how revenue is generated across different business segments, highlighting which areas drive growth and profitability. This can indicate strategic focus and market demand for specific offerings.
Data provided by:
The Fly
The FlyAmerica's Car-Mart Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The call described a mixed but manageable situation: the company faced a meaningful volume and revenue decline (22.1% and 12% respectively) driven chiefly by a capital-structure constraint (absence of a revolving warehouse facility) and an acute weather disruption, yet delivered several constructive operational and financing achievements — execution of a $300M term loan and a $161.3M ABS in a stressed market, improving unit economics (gross profit/unit +8.8%), stronger collections and credit mix, digital payments adoption, and a rebuilt cash balance. Key near-term risk remains the timing and completion of a revolving warehouse facility needed to fully restore origination capacity. Given the balance of substantial mitigating accomplishments against material near-term headwinds, the overall tone is mixed but resilient.Q3-2026 Updates
Positive Updates
Successful Capital Markets Execution (Term Loan and ABS)
Closed $300M term loan in October (retiring revolving line) and executed a $161.3M ABS (2025-4) in December with a 7.02% weighted average coupon using a residual cash flow (non-turbo) structure — viewed as a sign of investor and rating agency confidence in a turbulent subprime market.
Gross Profit per Unit and Unit Cost Improvement
Gross profit per retail unit sold increased 8.8% year over year despite lower volumes; underlying unit cost improved ~1.9% and average retail sales price rose 7.1% to $20,634.
Collections and Cash Flow Strength
Total collections were $179M (up 1.5% YoY). Cash collected as a percentage of average finance receivables improved by 11 basis points YoY. Average collected per active account per month rose 2.3% to $581.
Improving Credit Mix and Controlled Charge-offs
Highest credit-tier customers grew to 66.7% of accounts receivable from 62.8% a year ago. Net charge-offs improved (declined from $106M to $96M sequentially) and units charged off fell roughly from ~10,300 to ~9,200.
Digital Payments and Collections Platform Adoption
Pay Your Way customers (automatic recurring payments) increased >250% since launch; ~65% of payment transactions are remote and the platform materially supported collections during Winter Storm Fern. Salesforce Collections CRM scaled from a 3-store pilot to ~15% of stores.
Inventory Rebuild Ahead of Tax Season
Inventory bottomed in December but was rebuilt ahead of tax season, increasing ~44% from the December low into February, supporting improving sales trends before the storm.
SG&A Actions and Leaner Store Footprint
Completed phases one and two of SG&A cost control including workforce reductions and consolidation of 18 locations; active store count now 136. Adjusted SG&A (ex $2.8M restructuring/impairment) was $48.7M or 21.9% of sales, with expected run-rate savings flowing in Q4.
Stronger Cash Position
Total cash (including restricted) increased to $237M at 01/31/2026 vs $124.5M at 04/30/2025, providing liquidity while capital structure transition continues.
Negative Updates
Significant Retail Volume Decline
Retail units sold declined 22.1% year over year to 10,275 units, primarily driven by constrained ability to purchase inventory during the financing platform transition (lack of a revolving warehouse facility), a 12% smaller footprint, and Winter Storm Fern.
Revenue Decline
Total revenue fell 12.0% year over year to $286.8M, a material top-line contraction tied to lower unit origination volumes.
Critical Need for Revolving Warehouse Facility
Management stated the lack of a revolving warehouse facility constrained inventory purchases (forcing buys to be managed against available cash) and is the primary remaining step to restore origination capacity; timing remains uncertain due to multiple stakeholder alignment.
Weather-Related Operational Disruption (Winter Storm Fern)
Winter Storm Fern closed the entire South Central footprint (stores and corporate) for three days with extended residual impacts (transportation, auctions, parts, payments). Delinquency metrics were elevated at quarter end: accounts >30 days past due rose to 4.4% from 3.7% and recency fell to 71.4% from 81.3%, though trends normalized by mid-February.
Accounting Charges and GAAP Loss
Recognized a $47M noncash income tax charge establishing a full valuation allowance for Colonial Auto Finance deferred tax asset. GAAP loss per share was $9.25 for the quarter; adjusted loss per share (ex the three significant noncash/nonrecurring items) was a loss of $1.53.
Rising Allowance and Reserve Build
Allowance for credit losses increased to 25.53% of finance receivables at 01/31/2026 from 24.31% a year earlier; $18.2M credit loss allowance adjustments were recorded in the quarter, reflecting portfolio seasoning and macro pressures.
Leverage and Interest Expense Impact
Total debt was $892.2M; debt net of cash to finance receivables rose modestly to 44.7% from 43.2% (04/30/2025). Interest expense rose to $21.8M (5.8% of sales) for the quarter, reflecting the full-quarter impact of the $300M term loan (nine-month interest only modestly higher YoY).
SG&A Ratio Still Above Target
SG&A was $51.5M or 23.1% of reported sales (including ~$2.8M restructuring/impairment). Adjusted SG&A of 21.9% remains notably above the company's long-term 16.5% target, driven largely by the lower revenue denominator.
Company Guidance
Management's guidance was clear that the warehouse/revolving facility is the singular near‑term priority because volumes will remain constrained until it is completed—retail units fell 22.1% year‑over‑year to 10,275 and total revenue was $286.8M (down 12%), even though average retail sales price rose 7.1% to $20,634; inventory had bottomed in December and was up ~44% heading into tax season. On capital, the company closed a $300M term loan and completed a $161.3M ABS (2025‑4) at a 7.02% weighted average coupon, holds total cash of $237M with total debt of $892.2M (debt net of cash to finance receivables 44.7%), and expects blended cost of capital and interest expense (quarterly interest $21.8M, 5.8% of sales; nine‑month $54.5M) to improve as more originations fund through residual‑structure ABS. Operational and cost guidance: phase one and two consolidations reduced the footprint by 18 locations to 136 stores, SG&A was $51.5M (23.1% of sales) or $48.7M adjusted (21.9%) versus a 16.5% long‑term target with run‑rate savings expected to flow in Q4 (management cited an approximate current monthly run‑rate nearer $45–46M). Credit guidance emphasized portfolio strength—net charge‑offs were 6.5% of average finance receivables (vs. 6.1% prior quarter), allowance for credit losses rose to 25.53% (~3.6x quarterly charge‑offs) while net charge‑offs fell from $106M to $96M and units charged off fell ~10,300 to ~9,200; collections were $179M (up 1.5%), cash collected as a % of avg receivables improved 11 bps, average collected per active account was $581 (up 2.3%), highest credit tier now 66.7% (from 62.8%), and 30+ day delinquencies moved from 4.4% at quarter end back toward ~3.7–3.8% by mid‑February.America's Car-Mart Financial Statement Overview
Summary
Overall financials are pressured by a sharp TTM revenue decline (-9%), major gross margin compression (33.1% TTM vs ~45%–48% historically), and a large TTM net loss (-$122.5M; -11.8% margin). Offsets include balance-sheet deleveraging (debt reported at $0 TTM) and a return to positive operating cash flow ($16.4M) and free cash flow ($14.2M), though cash-flow volatility and deeply negative ROE (-22.6%) remain key risks.Income Statement
Profitability and growth have deteriorated meaningfully in TTM (Trailing-Twelve-Months). Revenue is down (-9.0% TTM), gross margin has compressed sharply (33.1% TTM vs ~45%–48% historically), and the company is reporting a large net loss (-$122.5M; -11.8% net margin TTM). While operating profit is still positive (EBIT margin ~2.7% TTM), it is far below prior years (e.g., double-digit operating margins in 2021–2022), suggesting weaker pricing/credit performance and higher cost pressure.32
Negative
Balance Sheet
The balance sheet shows a notable improvement in leverage in TTM (Trailing-Twelve-Months), with total debt reported at $0 and a debt-to-equity ratio of 0.0, versus a highly levered profile in 2023–2025 (debt-to-equity ~1.1–1.7). Equity remains sizable ($479M) on a ~$1.63B asset base, supporting financial flexibility. The key weakness is returns: return on equity is deeply negative in TTM (-22.6%) due to the net loss, which undermines the benefit of lower leverage if profitability does not recover.68
Positive
Cash Flow
Cash generation is mixed. TTM (Trailing-Twelve-Months) shows positive operating cash flow ($16.4M) and positive free cash flow ($14.2M), a clear improvement versus several prior annual periods with negative operating and free cash flow. However, the trajectory is volatile: free cash flow growth is sharply negative (down materially TTM), and cash flow quality is a watch item given the business recently produced large losses and had multiple years of cash outflows.54
Neutral
| Breakdown | TTM | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 1.39B | 1.39B | 1.41B | 1.21B | 918.61M |
| Gross Profit | 405.75M | 664.88M | 628.48M | 599.63M | 548.73M | 439.46M |
| EBITDA | 21.06M | 101.06M | 32.08M | 69.71M | 137.59M | 145.87M |
| Net Income | -94.31M | 17.89M | -31.39M | 20.43M | 95.01M | 104.82M |
Balance Sheet | ||||||
| Total Assets | 1.63B | 1.61B | 1.48B | 1.41B | 1.15B | 822.16M |
| Cash, Cash Equivalents and Short-Term Investments | 117.91M | 9.81M | 5.52M | 9.80M | 6.92M | 2.89M |
| Total Debt | 952.19M | 845.07M | 819.52M | 700.90M | 502.14M | 290.61M |
| Total Liabilities | 1.15B | 1.04B | 1.01B | 915.79M | 677.76M | 415.26M |
| Stockholders Equity | 479.42M | 569.82M | 471.05M | 498.85M | 476.83M | 406.80M |
Cash Flow | ||||||
| Free Cash Flow | 14.16M | -52.61M | -80.04M | -160.21M | -135.19M | -62.76M |
| Operating Cash Flow | 16.44M | -48.76M | -73.90M | -137.97M | -114.28M | -53.81M |
| Investing Cash Flow | -2.15M | -11.38M | -10.64M | -25.33M | -22.24M | -8.26M |
| Financing Cash Flow | 96.33M | 90.23M | 110.96M | 188.75M | 176.22M | 5.40M |
America's Car-Mart Technical Analysis
Negative
12.15
Price Trends
23.01
Negative
23.09
Negative
33.57
Negative
Market Momentum
-2.57
Positive
18.36
Positive
1.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRMT, the sentiment is Negative. The current price of 12.15 is below the 20-day moving average (MA) of 18.92, below the 50-day MA of 23.01, and below the 200-day MA of 33.57, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 18.36 is Positive, neither overbought nor oversold. The STOCH value of 1.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRMT.
America's Car-Mart Risk Analysis
America's Car-Mart disclosed 18 risk factors in its most recent earnings report. America's Car-Mart reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
America's Car-Mart Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $470.27M | 36.66 | 4.17% | ― | 0.20% | -20.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $203.12M | 5.03 | -4.06% | ― | 1434.51% | -1207.73% | |
50 Neutral | $779.32M | -20.84 | 46.72% | ― | ― | ― | |
49 Neutral | $100.87M | -0.70 | -2.60% | ― | 2.07% | -117.51% | |
46 Neutral | $7.51M | -5.82 | -543.84% | ― | -99.25% | 90.38% | |
44 Neutral | $57.30M | -1.31 | -77.02% | ― | -81.31% | 87.13% |
* Consumer Cyclical Sector Average
CRMT
America's Car-Mart
12.15
-33.55
-73.41%
CARS
Cars
8.02
-3.25
-28.84%
KXIN
Kaixin Auto Holdings
4.54
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-99.01%
UXIN
Uxin
3.78
-0.22
-5.50%
CANG
Cango
0.57
-4.09
-87.77%
VRM
Vroom, Inc.
11.02
-15.98
-59.19%
America's Car-Mart Corporate Events
Business Operations and StrategyPrivate Placements and Financing
America’s Car-Mart completes significant auto receivables securitization
Positive
Dec 23, 2025
On December 17, 2025, America’s Car-Mart completed a $161.3 million term securitization through its ACM Auto Trust 2025-4 vehicle, issuing two classes of asset-backed, non-recourse notes supported by $285.4 million of installment receivables from its used-car finance business. The deal, sold to qualified institutional buyers, features a residual cash flow structure and multiple credit enhancements, and management expects it to improve capital efficiency, increase retained cash flow, bolster liquidity and funding stability, and reduce the company’s long-term cost of capital compared with its prior securitizations, marking a significant step in the retailer’s ongoing effort to strengthen its balance sheet and support its operating transformation.
The most recent analyst rating on (CRMT) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on America’s Car-Mart stock, see the CRMT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.