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

• Market Cap: $271.28M
• Dividend Yield: N/A
• Average Volume (3M): 183.24K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.51
• Revenue Growth: 0.79%
• EPS Growth: N/A
• Country: US
• Employees: 2,280
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.69
• Shares Outstanding: 8,278,194
• 10 Day Avg. Volume: 239,633
• 30 Day Avg. Volume: 183,237
• 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 Cap: 4.06
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 11.73
• 1Y Price Target: $46.67
• Price Target Upside: 42.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $37.00 ▲(12.67% Upside)

America's Car-Mart's overall stock score reflects significant financial and technical challenges. The company's financial performance is hindered by declining profitability and liquidity issues. Technical analysis indicates bearish momentum. While the earnings call provided some positive developments, the overall sentiment remains mixed. Valuation is moderate, but the absence of a dividend yield limits appeal.

Positive Factors

Sales Volume Growth

The increase in sales volume indicates strong demand and effective sales strategies, which can lead to sustained revenue growth and market share expansion.

Leadership Additions

New leadership with extensive experience can drive strategic initiatives and improve operational efficiency, supporting long-term growth.

Securitization Transaction

The successful securitization enhances financial flexibility and reduces reliance on traditional debt, improving capital efficiency and stability.

Negative Factors

Rising Delinquencies

Increased delinquencies can lead to higher credit losses, impacting profitability and cash flow, and may indicate underlying credit quality issues.

High Leverage

High leverage can strain financial resources, limit strategic flexibility, and increase vulnerability to economic downturns, affecting long-term stability.

Liquidity Issues

Liquidity challenges can hinder the company's ability to invest in growth opportunities and meet financial obligations, posing risks to ongoing operations.

America's Car-Mart Business Overview & Revenue Model

Company Description

America'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 Money

America's Car-Mart generates revenue primarily through the sale of used vehicles and the financing services it offers to customers. When a vehicle is sold, the company typically provides an installment loan to the buyer, which allows them to make monthly payments over time. This financing model not only facilitates vehicle sales but also creates a significant revenue stream through interest payments on these loans. In addition to vehicle sales and financing, America's Car-Mart may also earn revenue from ancillary services such as vehicle warranties and service plans. The company’s ability to cater to a specific market segment, combined with its in-house financing capabilities, enhances its earnings potential and creates customer loyalty.

America's Car-Mart Financial Statement Overview

Summary

America's Car-Mart faces several financial challenges. The stable gross profit margin is overshadowed by declining net profit margins and inconsistent revenue growth. The balance sheet shows increased leverage, posing financial risks, and the cash flow statement indicates liquidity issues.

Income Statement

America's Car-Mart has shown a mixed performance in its income statement. The gross profit margin has remained relatively stable, indicating efficient cost management. However, the net profit margin has seen a significant decline over the years, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with recent periods showing a decline, which could be concerning for future growth prospects. The EBIT and EBITDA margins have also decreased, indicating potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has increased over time, suggesting a reliance on debt financing that could pose financial risks. Return on equity has decreased significantly, indicating reduced profitability for shareholders. The equity ratio has also declined, reflecting a lower proportion of equity financing. These factors suggest potential financial instability and increased leverage risks.

Cash Flow

The cash flow statement highlights significant challenges, with negative operating and free cash flows over recent periods. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. These factors suggest liquidity concerns and potential difficulties in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.39B	1.39B	1.41B	1.21B	918.61M
Gross Profit	360.12M	664.88M	628.48M	599.63M	548.73M	439.46M
EBITDA	93.85M	101.06M	32.08M	69.71M	137.59M	144.98M
Net Income	12.17M	17.89M	-31.39M	20.43M	95.01M	104.82M
Balance Sheet
Total Assets	1.61B	1.61B	1.48B	1.42B	1.15B	822.16M
Cash, Cash Equivalents and Short-Term Investments	9.67M	9.81M	5.52M	9.80M	6.92M	2.89M
Total Debt	0.00	845.07M	818.70M	638.60M	502.14M	290.61M
Total Liabilities	1.04B	1.04B	1.01B	1.12B	675.95M	415.66M
Stockholders Equity	564.93M	569.82M	471.05M	297.42M	469.37M	406.50M
Cash Flow
Free Cash Flow	-43.03M	-52.61M	-80.04M	-160.21M	-135.19M	-62.76M
Operating Cash Flow	-39.71M	-48.76M	-73.90M	-137.97M	-114.28M	-53.81M
Investing Cash Flow	-3.30M	-11.38M	-10.64M	-25.33M	-22.24M	-8.26M
Financing Cash Flow	65.82M	90.23M	110.96M	188.75M	176.22M	5.40M

America's Car-Mart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 32.84 is below the 20-day moving average (MA) of 39.26, below the 50-day MA of 45.07, and below the 200-day MA of 48.34, indicating a bearish trend. The MACD of -3.64 indicates Positive momentum. The RSI at 30.49 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	64 Neutral	781.59M	20.71	8.49%	―	0.68%	67.41%
CWH	59 Neutral	1.68B	-83.55	-2.40%	3.04%	5.15%	48.98%
CANG	58 Neutral	811.87M	-1.25	7.34%	―	348.38%	-1821.85%
RDNW	56 Neutral	166.29M	-1.46	2329.79%	―	-14.27%	67.06%
CRMT	50 Neutral	$271.28M	21.08	2.54%	―	0.79%	―
UXIN	42 Neutral	713.35M	-18.48	74.03%	―	0.00%	0.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

America's Car-Mart Corporate Events

America’s Car-Mart Completes Major Securitization Transaction

On August 28, 2025, America’s Car-Mart, Inc. completed a securitization transaction involving the issuance of $133.34 million in Class A Notes and $38.62 million in Class B Notes, collateralized by $291.5 million of accounts receivable. The transaction, which resulted in net proceeds of approximately $170.7 million, is aimed at paying outstanding debt and enhancing financial efficiency. The Class A and B Notes were rated A(sf) and BBB(sf) respectively by S&P Global Rating Agency, reflecting strong market interest, with the Class A Notes almost 8 times oversubscribed and Class B Notes nearly 16 times oversubscribed. This marks the company’s eighth asset-backed securitization, demonstrating continued strength and improvement in their financing platform.

America’s Car-Mart Regains Nasdaq Compliance

On August 13, 2025, America’s Car-Mart, Inc. announced it regained compliance with Nasdaq’s periodic filing requirements after filing its Annual Report for the fiscal year ended April 30, 2025. This compliance confirmation from Nasdaq closes the matter, ensuring the company’s continued listing on the exchange.

America’s Car-Mart Faces Nasdaq Non-Compliance Notice

On July 31, 2025, America’s Car-Mart, Inc. received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Annual Report for the fiscal year ended April 30, 2025. The delay was attributed to the need for additional disclosures related to loan modifications and addressing material weaknesses. The notice does not immediately affect the company’s stock listing, and the company has until September 29, 2025, to submit a compliance plan, potentially extending the deadline to January 26, 2026.

America’s Car-Mart Delays Annual Report Filing

On July 30, 2025, America’s Car-Mart announced a delay in filing its Annual Report due to the need for additional disclosures related to loan modifications for borrowers experiencing financial difficulties. The company identified deficiencies in its internal control over financial reporting and expects to report material weaknesses in its upcoming Form 10-K. Despite the delay, the company does not anticipate an immediate impact on its Nasdaq listing or trading of its stock. The additional disclosures are not expected to affect the company’s previously reported financial results, but management has determined that certain past financial statements should no longer be relied upon.