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

• Market Cap: $234.33M
• Dividend Yield: N/A
• Average Volume (3M): 198.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 2.07%
• EPS Growth: -117.51%
• Country: US
• Employees: 2,280
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.69
• Shares Outstanding: 8,294,807
• 10 Day Avg. Volume: 252,350
• 30 Day Avg. Volume: 198,354
• 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: 0.26
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.15
• Enterprise Value/Ebitda: 1.08
• 1Y Price Target: $29.00
• Price Target Upside: 2.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $28.00 ▼(-0.88% Downside)

The score is held back primarily by weak financial quality—net losses and consistently negative operating/free cash flow—despite strong recent revenue growth. Technicals are moderately supportive near-term, while valuation is difficult to assess due to negative earnings. Recent communications and financing events show progress on margins and funding, but operating pressures (volumes, costs, delinquencies, and SG&A) keep the risk/reward only modest.

Positive Factors

Securitization Efficiency

The new securitization structure is expected to enhance cash flow and reduce long-term capital costs, strengthening financial stability.

Gross Margin Expansion

Improved gross margins indicate better cost management and pricing power, enhancing profitability and competitive positioning.

Improved Leverage

Better leverage management enhances financial flexibility, allowing for strategic investments and operational resilience.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in sales growth and market demand, potentially impacting long-term business expansion.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth opportunities and may strain liquidity over time.

Higher Delinquency Rates

Rising delinquency rates can lead to increased credit losses, affecting profitability and financial health.

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, 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 Financial Statement Overview

Summary

Financial fundamentals are strained: the income statement shows sharp revenue deterioration and negative net margin in the TTM period, while cash flow is weak with negative operating and free cash flow. The balance sheet is a relative bright spot with improved leverage (better debt-to-equity) and a stable equity ratio, but negative ROE underscores profitability pressure.

Income Statement

America's Car-Mart has experienced a significant decline in revenue growth, particularly in the TTM period with a negative growth rate of -56.3%. The gross profit margin has also decreased from previous years, indicating pressure on profitability. The net profit margin has turned negative in the TTM, highlighting challenges in maintaining profitability. However, the company has managed to maintain a positive EBIT margin, albeit lower than previous years.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management compared to previous years. However, the return on equity has turned negative, reflecting challenges in generating returns for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow metrics indicate significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is low, suggesting difficulties in converting income into cash. The free cash flow to net income ratio is positive, indicating some level of cash generation relative to net income.

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	420.21M	664.88M	628.48M	599.63M	548.73M	439.46M
EBITDA	57.05M	101.06M	32.08M	69.71M	137.59M	145.87M
Net Income	-14.44M	17.89M	-31.39M	20.43M	95.01M	104.82M
Balance Sheet
Total Assets	1.72B	1.61B	1.48B	1.42B	1.15B	822.16M
Cash, Cash Equivalents and Short-Term Investments	122.36M	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	1.16B	1.04B	1.01B	1.12B	675.95M	415.66M
Stockholders Equity	555.03M	569.82M	471.05M	297.42M	469.37M	406.50M
Cash Flow
Free Cash Flow	-9.93M	-52.61M	-80.04M	-160.21M	-135.19M	-62.76M
Operating Cash Flow	-8.42M	-48.76M	-73.90M	-137.97M	-114.28M	-53.81M
Investing Cash Flow	-2.66M	-11.38M	-10.64M	-25.33M	-22.24M	-8.26M
Financing Cash Flow	132.37M	90.23M	110.96M	188.75M	176.22M	5.40M

America's Car-Mart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.25 is above the 20-day moving average (MA) of 26.45, above the 50-day MA of 23.77, and below the 200-day MA of 38.88, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 is Neutral, 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	68 Neutral	$719.55M	26.08	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	57 Neutral	$516.20M	-0.49	-25.80%	―	1434.51%	-1207.73%
UXIN	50 Neutral	$756.64M	-18.37	―	―	―	―
CRMT	49 Neutral	$234.33M	-15.91	-2.60%	―	2.07%	-117.51%
KXIN	40 Underperform	$61.45M	-0.05	-94.86%	―	-99.25%	90.38%
VRM	38 Underperform	$97.62M	-0.90	-52.02%	―	-81.31%	87.13%

America's Car-Mart Corporate Events

America’s Car-Mart completes significant auto receivables securitization

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.

America’s Car-Mart Secures $300M Loan for Growth

On October 30, 2025, America’s Car-Mart, Inc. announced the closing of a new five-year, $300 million term loan facility with Silver Point Capital, which will mature on October 30, 2030. This strategic move allowed the company to repay its $350 million asset-backed line of credit, thereby simplifying its balance sheet and enhancing its capital structure to support long-term growth. The new loan is secured by finance receivables, inventory, and equity ownership interests of certain subsidiaries, and bears interest at SOFR plus 7.50% per annum. The transaction also included the issuance of warrants to Silver Point Capital for purchasing up to 10% of the company’s common stock. This financial restructuring is expected to provide America’s Car-Mart with greater flexibility and agility in its operations, aligning with its long-term capital strategy and enhancing its market position.

The most recent analyst rating on (CRMT) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on America’s Car-Mart stock, see the CRMT Stock Forecast page.