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America's Car-Mart (CRMT)
NASDAQ:CRMT
US Market

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

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America's Car-Mart

(NASDAQ:CRMT)

Rating:67Neutral
Price Target:
$54.00
▼(-3.03%Downside)
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
Earnings per share beat consensus by 47%, driven primarily by lower expenses in credit provisions, interest, and depreciation & amortization.
Management Commentary
Positive commentary from the management team on future sales and margins suggests confidence in upcoming performance.
Operational Improvements
Operational enhancements such as the new Loan Origination System and streamlined processes are now expected to show positive impacts.
Negative Factors
Competitive Position
Many of Car-Mart's operations being manual indicates that Car-Mart is behind its peers.
Growth Concerns
The bear case suggests that previous growth was due to loosening credit standards, and now the company can't achieve those growth rates organically.
Investor Sentiment
Investors feel 'fatigue' since the great things highlighted by management have not yet translated into the significant growth hoped for.

America's Car-Mart (CRMT) vs. SPDR S&P 500 ETF (SPY)

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 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 Earnings Call Summary

Earnings Call Date:Jun 12, 2025
(Q4-2025)
|
% Change Since: -3.55%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment, with significant improvements in net income, securitization success, and enhancements in payment options and credit performance. While there were challenges related to increased SG&A expenses and supply constraints due to tariffs, the company's strategic focus and leadership transitions are positioning it for future growth.
Q4-2025 Updates
Positive Updates
Significant Improvement in Net Income
The company reported a net income of $17.9 million for FY 2025, compared to a net loss of $31.4 million in the previous year, marking an improvement of over $49 million.
Successful Securitization
The company successfully closed its seventh term securitization, issuing $216 million in asset-backed notes with a weighted average coupon of 6.27%, a 22 basis point improvement versus the previous issuance.
Enhancements in Payment Options
The company relaunched 'Pay Your Way,' expanding payment options to include Apple Pay, Google Pay, Venmo, and PayPal, thus improving customer convenience and satisfaction.
Increased Gross Margin
Q4 gross margin increased to 36.4% from 35.5% a year ago, with a full-year gross margin improvement of 200 basis points to 36.7%.
Improved Credit Performance
Net charge-offs as a percentage of average finance receivables improved to 6.9% from 7.3% in the prior year quarter, with an improvement of 130 basis points for the full year.
Expansion of Capital Markets Team
The company appointed Marie Persichetti as the new Senior Vice President of Capital Markets to diversify and improve funding platforms.
Negative Updates
SG&A Expenses Increase
SG&A expenses increased by $3.8 million or 8.6%, driven by investments in technology, talent, and strategic acquisitions.
Decreased Unit Sales for the Full Year
For the full year, the company sold 57,022 units, a decrease of 1.7% year-over-year.
Impact of Tariffs and Supply Challenges
The company highlighted ongoing challenges due to tariffs and a tighter supply environment affecting procurement and pricing.
Company Guidance
During America's Car-Mart's fourth quarter fiscal year 2025 earnings call, the company provided significant guidance on its financial trajectory and strategic initiatives. The call highlighted a net income of $17.9 million, marking a notable turnaround from a $31.4 million net loss the previous year, reflecting an improvement of over $49 million. Key metrics such as gross margin improved to 36.4% for the quarter, with a year-over-year increase of 200 basis points, reaching 36.7% for the full fiscal year. The company also reported an increase in unit sales volume by 2.6% and a 4.2% rise in interest income for the quarter. Additionally, they announced the successful issuance of $216 million in asset-backed notes with a weighted average coupon of 6.27%, a 22 basis point improvement over January's issuance. The company is optimistic about its future growth, leveraging new underwriting and pricing models to enhance credit performance and customer engagement. These strategic moves are expected to optimize the company’s risk management, financial performance, and market share capture.

America's Car-Mart Financial Statement Overview

Summary
America's Car-Mart's financial performance shows mixed results. Income statement highlights declining revenue and margins, indicating profitability and growth challenges. The balance sheet is strong with no debt and a solid equity ratio, but inefficient use of equity. Cash flow has improved with positive free cash flow, yet profitability remains a concern.
Income Statement
65
Positive
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
75
Positive
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
70
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.33B1.39B1.41B1.21B918.61M744.61M
Gross Profit604.40M628.48M599.63M548.73M439.46M356.14M
EBITDA101.09M32.08M69.71M137.59M144.98M76.24M
Net Income16.94M-31.39M20.43M95.01M104.82M51.34M
Balance Sheet
Total Assets1.61B1.48B1.42B1.15B822.16M667.32M
Cash, Cash Equivalents and Short-Term Investments9.81M5.52M9.80M6.92M2.89M59.56M
Total Debt0.00818.70M638.60M502.14M290.61M278.38M
Total Liabilities1.04B1.01B1.12B675.95M415.66M364.56M
Stockholders Equity569.52M471.05M297.42M469.37M406.50M302.76M
Cash Flow
Free Cash Flow-52.61M-80.04M-160.21M-135.19M-62.76M15.49M
Operating Cash Flow-48.76M-73.90M-137.97M-114.28M-53.81M20.92M
Investing Cash Flow-11.38M-10.64M-25.33M-22.24M-8.26M-9.89M
Financing Cash Flow90.23M110.96M188.75M176.22M5.40M46.78M

America's Car-Mart Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.69
Price Trends
50DMA
50.28
Positive
100DMA
48.20
Positive
200DMA
47.13
Positive
Market Momentum
MACD
1.07
Negative
RSI
60.38
Neutral
STOCH
74.16
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 55.69 is above the 20-day moving average (MA) of 52.38, above the 50-day MA of 50.28, and above the 200-day MA of 47.13, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 74.16 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 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$745.21M17.639.35%2.24%-57.33%
67
Neutral
$460.10M26.573.45%-2.26%
CWCWH
64
Neutral
$1.88B-13.97%2.72%0.75%-412.53%
56
Neutral
HK$23.98B4.08-1.57%6.81%0.06%-64.88%
55
Neutral
$462.87M6.630.12%40.31%-204.86%
47
Neutral
$81.02M-130.43%-14.45%78.09%
40
Underperform
$752.52M260.24%9.33%50.69%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRMT
America's Car-Mart
55.69
-3.78
-6.36%
CWH
Camping World Holdings
18.38
1.25
7.30%
CARS
Cars
11.85
-6.94
-36.93%
RMBL
RumbleON
2.14
-1.61
-42.93%
UXIN
Uxin
3.65
1.59
77.18%
CANG
Cango
4.46
2.81
170.30%

America's Car-Mart Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
America’s Car-Mart Appoints New Chief Financial Officer
Positive
May 13, 2025

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.

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.Date of analysis: May 31, 2025