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

• Market Cap: $168.72M
• Dividend Yield: N/A
• Average Volume (3M): 198.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 2.07%
• EPS Growth: -117.51%
• Country: US
• Employees: 2,280
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• 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: 6.00
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 17.73
• 1Y Price Target: $29.00
• Price Target Upside: 42.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $20.50 ▲(0.79% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

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

Captive financing business model

America's Car-Mart's integrated retail-plus-financing model creates multiple revenue streams: vehicle markup, higher-yield installment income, and ancillaries like warranties and insurance. This vertical mix supports customer retention and recurring cash flow potential versus pure retail peers, strengthening long-term unit economics.

Strong revenue growth and growing interest income

Sustained top-line expansion increases scale for both retail and receivables; a larger loan book has driven higher interest income and collections. Over months this supports gross margin stability and the ability to absorb fixed costs, improving resilience if management sustains underwriting discipline and collection efficiency.

Improved funding and securitization capacity

The recent term securitization and refinancing moves materially strengthen liquidity and funding stability. Better securitization economics and a new term loan reduce reliance on short-term funding, improving capital efficiency and enabling continued origination and working-capital support over the medium term.

Negative Factors

Persistent negative cash generation

Continued negative OCF and FCF signals the business is consuming capital rather than generating it, limiting reinvestment and making the company reliant on external funding or securitizations. Over 2–6 months this constrains strategic flexibility and raises rollover and refinancing risk if cash trends don't improve.

Volatile and currently negative profitability

Intermittent profits in prior years but current net losses highlight earnings volatility and impaired returns. Even with positive operating margin historically, net losses undermine equity returns and reinvestment capacity, making long-term earnings recovery and consistent shareholder value creation uncertain.

Structural margin and volume pressures

Rising procurement costs from tariffs, declining unit volumes and higher SG&A from payroll and tech investments compress margin and strain throughput. Combined with higher delinquencies, these factors can persist for months, pressuring unit economics and making margin recovery dependent on sourcing relief or sustained pricing/underwriting gains.

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

Top-line growth is strong (TTM revenue +25.6%), but profitability and cash generation are weak: TTM net loss (-$14.4M), negative net margin (-1.4%), and negative operating/free cash flow (OCF -$8.4M; FCF -$9.9M) with persistently negative annual cash flows. Balance sheet metrics look improved in the TTM snapshot (debt shown as $0), but the sharp contrast with prior-year leverage adds uncertainty.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is strong (+25.6%), but profitability has deteriorated to a net loss (-$14.4M) with a negative net margin (-1.4%). Operating profitability remains positive (about a 6.0% operating margin), yet gross margin has fallen versus the most recent annual period (TTM ~35.4% vs. FY2025 ~47.8%), indicating weaker unit economics and/or higher costs. Results look volatile over the last several years (strong profits in FY2021–FY2022, losses in FY2024, modest profit in FY2025, back to a loss in TTM).

Balance Sheet

Leverage appears materially improved in the TTM snapshot (total debt shown as $0 and debt-to-equity at 0.0x), while equity is sizable at ~$555M against ~$1.72B of assets. That said, prior annual reports show meaningful leverage (debt-to-equity ~1.5x–2.1x in FY2023–FY2025), so the capital structure looks inconsistent across periods and worth reconciling. Returns to shareholders are weak in the latest period (TTM return on equity is negative at about -2.6%), reflecting the current net loss.

Cash Flow

Cash generation is the key weakness: TTM (Trailing-Twelve-Months) operating cash flow is negative (-$8.4M) and free cash flow is also negative (-$9.9M), with a sharp decline in free cash flow versus the prior period (growth ~-76.9%). Annual periods also show persistently negative operating and free cash flow, suggesting earnings quality and/or working-capital/loan-book dynamics are pressuring cash. While free cash flow is shown as more than net income in several periods, the business is still consuming cash overall, limiting financial flexibility.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 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	1.41B	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	962.77M	845.07M	819.52M	700.90M	502.14M	290.61M
Total Liabilities	1.16B	1.04B	1.01B	915.79M	677.76M	415.26M
Stockholders Equity	555.43M	569.82M	471.05M	498.85M	476.83M	406.80M
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: Negative
• Last Price: 20.34
• 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 20.34 is below the 20-day moving average (MA) of 23.54, below the 50-day MA of 25.30, and below the 200-day MA of 35.95, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.12 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	68 Neutral	$637.61M	23.22	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	57 Neutral	$300.47M	-0.29	-25.80%	―	1434.51%	-1207.73%
UXIN	50 Neutral	$692.73M	-17.29	―	―	―	―
CRMT	49 Neutral	$168.72M	-11.47	-2.60%	―	2.07%	-117.51%
KXIN	46 Neutral	$14.74M	>-0.01	-94.86%	―	-99.25%	90.38%
VRM	44 Neutral	$86.42M	-0.85	-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.