America's Car-Mart (CRMT) AI Stock Analysis

• Market Cap: $429.20M
• Dividend Yield: N/A
• Average Volume (3M): 51.33K
• Price to Earnings (P/E): 60.6
• Beta (1Y): 1.48
• Revenue Growth: -2.26%
• EPS Growth: N/A
• Country: US
• Employees: 2,280
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Dealerships
• EPS (TTM): 0.37
• Shares Outstanding: 8,261,869
• 10 Day Avg. Volume: 57,500
• 30 Day Avg. Volume: 51,329
• PEG Ratio: 0.28
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.92
• Enterprise Value/Market Cap: 2.94
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $51.00
• Price Target Upside: -1.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $54.00 ▲(3.95%Upside)

America's Car-Mart's overall stock score of 67 reflects a mixed financial performance with strong balance sheet fundamentals but challenges in profitability. Technical indicators show moderate positive momentum, while the high P/E ratio suggests potential overvaluation. Positive outcomes from recent earnings call and strategic leadership changes provide a supportive outlook, though operational risks remain.

Positive Factors

Earnings

The earnings per share beat consensus by 47%, driven primarily by lower expenses in credit provisions, interest, and depreciation & amortization.

Market Position

Incremental market share gain is expected, with competition recently pulling back amid macro concerns.

Sales Performance

Significant improvements to sales per store per month, up 13% year over year and 10% better than consensus.

Negative Factors

Future Outlook

We still expect q/q declines next quarter.

Operational Challenges

Many of Car-Mart's operations being manual indicates that Car-Mart is behind its peers.

Stock Performance

Car-Mart shares have declined 23% over the past month.

America's Car-Mart Business Overview & Revenue Model

Company Description

America's Car-Mart, Inc. (CRMT) is a leading automotive retailer in the United States, primarily engaged in the sale of used vehicles. The company operates in the automotive and financial services sectors, providing quality pre-owned vehicles and offering financing solutions to its customers. America's Car-Mart focuses on serving customers who may have limited or no access to traditional credit sources, thus catering to a niche market of credit-challenged buyers. The company's operations are concentrated in the South-Central region of the United States, with numerous dealership locations offering a wide range of vehicles and flexible financing options.

How the Company Makes Money

America's Car-Mart generates revenue through the sale of used vehicles and by providing in-house financing solutions. The company primarily targets customers who face challenges in securing traditional financing due to poor or limited credit histories. By offering its own financing, Car-Mart benefits from interest income on installment contracts, which constitutes a significant portion of its revenue. This buy here, pay here model allows the company to capture both the vehicle sale price and the interest from financing, thus maximizing its earnings potential. Additionally, Car-Mart's revenue is supported by the resale of repossessed vehicles and the sale of ancillary products such as service contracts and vehicle protection plans. The company's ability to manage credit risk and maintain strong customer relationships is crucial to its financial success.

America's Car-Mart Financial Statement Overview

Summary

America's Car-Mart shows a mixed financial position. The income statement reflects declining revenue and margins, highlighting challenges in profitability and growth. The balance sheet is strong with no debt and a good equity ratio, but low return on equity suggests inefficiencies. Cash flow has improved with positive free cash flow, but profitability remains a concern.

Income Statement

The company has seen a decline in revenue from the previous annual period, indicating challenges in growth. The gross profit margin for TTM (Trailing-Twelve-Months) stands at 38.35%, which is healthy but has decreased from prior years. The net profit margin for TTM is relatively low at 0.27%, reflecting limited profitability. EBIT and EBITDA margins have also declined, showing reduced operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 34.7% in TTM, suggesting a stable financial structure. The company has no debt in TTM, which minimizes financial risk. However, the return on equity is low at 0.64% in TTM, indicating inefficient use of equity to generate profits.

Cash Flow

The company has managed to generate positive free cash flow in TTM, a significant improvement from previous negative values. However, the free cash flow to net income ratio is high due to low net income levels. Operating cash flow to net income ratio is solid at 7.88, indicating strong cash generation relative to net income.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.39B	1.39B	1.41B	1.21B	918.61M	744.61M
	Gross Profit
656.65M	628.48M	599.63M	548.73M	439.46M	356.14M
	EBIT
64.06M	25.65M	64.47M	131.47M	141.22M	72.29M
	EBITDA
89.41M	32.08M	69.71M	137.59M	144.98M	76.24M
	Net Income Common Stockholders
6.74M	-31.39M	20.43M	95.01M	104.82M	51.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.53M	5.52M	9.80M	6.92M	2.89M	59.56M
	Total Assets
1.61B	1.48B	1.42B	1.15B	822.16M	667.32M
	Total Debt
863.91M	818.70M	638.60M	502.14M	290.61M	278.38M
	Net Debt
855.38M	813.18M	628.80M	495.22M	287.72M	218.82M
	Total Liabilities
1.05B	1.01B	1.12B	675.95M	415.66M	364.56M
	Stockholders Equity
558.21M	471.05M	297.42M	469.37M	406.50M	302.76M
Cash Flow		Free Cash Flow
-82.76M	-80.04M	-160.21M	-135.19M	-62.76M	15.49M
	Operating Cash Flow
-78.71M	-73.90M	-137.97M	-114.28M	-53.81M	20.92M
	Investing Cash Flow
-14.43M	-10.64M	-25.33M	-22.24M	-8.26M	-9.89M
	Financing Cash Flow
122.39M	110.96M	188.75M	176.22M	5.40M	46.78M

America's Car-Mart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRMT, the sentiment is Positive. The current price of 51.95 is above the 20-day moving average (MA) of 50.38, above the 50-day MA of 48.34, and above the 200-day MA of 47.52, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 66.89 is Neutral, neither overbought nor oversold. The STOCH value of 88.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRMT.

America's Car-Mart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	74 Outperform	$655.28M	15.16	9.35%	―	2.24%	-57.33%
CRMT	67 Neutral	$429.20M	60.60	1.50%	―	-2.26%	―
CANG	67 Neutral	$527.22M	6.63	0.12%	―	40.31%	-204.86%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%
CWH	62 Neutral	$1.80B	―	-13.97%	2.81%	0.75%	-412.53%
RMBL	46 Neutral	$64.74M	―	-130.43%	―	-14.45%	78.09%
UXIN	40 Underperform	$714.35M	―	260.24%	―	9.33%	50.69%

America's Car-Mart Corporate Events

America’s Car-Mart Appoints New Chief Financial Officer

On May 8, 2025, America’s Car-Mart announced the appointment of Jonathan Collins as Chief Financial Officer, effective May 12, 2025. Collins, who has extensive experience in financial leadership roles at Walmart and Flipkart, will succeed Vickie Judy, who will transition to Chief Accounting Officer. This leadership change is part of Car-Mart’s strategy to strengthen its operations and support long-term growth. Collins’ appointment is expected to enhance the company’s financial planning and capital markets capabilities, contributing to its mission of delivering value to customers and shareholders.

The most recent analyst rating on (CRMT) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on America’s Car-Mart stock, see the CRMT Stock Forecast page.