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

• Market Cap: $223.30M
• Dividend Yield: N/A
• Average Volume (3M): 198.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• 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: 0.28
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.15
• Enterprise Value/Ebitda: 1.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $26.00 ▲(11.25% Upside)

America's Car-Mart's overall stock score reflects significant financial challenges, particularly in revenue growth and cash flow generation. While there are positive developments in corporate events and some technical indicators suggest potential upward momentum, the negative valuation and mixed earnings call sentiment weigh heavily on the score. The company needs to address its profitability and cash flow issues to improve its financial health and stock performance.

Positive Factors

Gross Margin Expansion

The expansion in gross margin indicates improved profitability and cost management, enhancing long-term financial stability and competitiveness.

Secured $300M Loan

The secured loan simplifies the balance sheet and enhances capital structure, providing flexibility for growth and strengthening market position.

Interest Income Growth

Growth in interest income reflects successful financing strategies and customer base expansion, contributing to sustainable revenue streams.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in sales performance, potentially impacting long-term growth and market share.

Increased Procurement Costs

Rising procurement costs can pressure margins and profitability, affecting the company's ability to maintain competitive pricing.

Higher Delinquency Rates

Increased delinquency rates suggest potential risks in credit quality, impacting cash flow and financial stability.

America's Car-Mart Business Overview & Revenue Model

Company Description

America's Car-Mart, Inc. (CRMT) is a leading retailer of used automobiles in the United States, primarily targeting customers with limited access to traditional financing options. The company operates through a network of dealerships across various states, offering a range of vehicles, primarily used cars and trucks. America's Car-Mart specializes in providing affordable and accessible auto financing solutions, catering to individuals with credit challenges while also delivering a customer-centric purchasing experience.

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

America's Car-Mart is facing financial challenges, particularly in revenue growth and cash flow generation. While there are improvements in leverage, profitability metrics have weakened, and cash flow issues persist. The company needs to focus on stabilizing revenue and improving cash flow to enhance financial health.

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: 23.37
• 50DMA: Positive
• 100DMA: Negative
• 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 23.37 is below the 20-day moving average (MA) of 24.36, above the 50-day MA of 23.26, and below the 200-day MA of 40.59, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 58.65 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	$771.59M	27.95	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	56 Neutral	$551.80M	-0.51	-25.80%	―	1434.51%	-1207.73%
CRMT	54 Neutral	$223.30M	-14.16	-2.60%	―	2.07%	-117.51%
UXIN	48 Neutral	$703.04M	-20.38	―	―	―	―
KXIN	38 Underperform	$21.64M	-0.02	-94.86%	―	-99.25%	90.38%
VRM	38 Underperform	$129.05M	-1.29	-52.02%	―	-81.31%	87.13%

America's Car-Mart Corporate Events

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.

America’s Car-Mart Holds Annual Stockholders Meeting

On September 25, 2025, America’s Car-Mart held its annual stockholders meeting, where key decisions were made, including the election of directors for a one-year term and the approval of an advisory resolution on executive compensation. Additionally, the stockholders ratified the selection of Grant Thornton LLP as the independent public accounting firm for the fiscal year ending April 30, 2026. These decisions are crucial for the company’s governance and financial oversight, ensuring continued strategic direction and compliance with industry standards.