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

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CRMT

America's Car-Mart

(NASDAQ:CRMT)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
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 (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 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 Earnings Call Summary

Earnings Call Date:Sep 04, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of achievements and challenges. While the company successfully expanded its gross margin, interest income, and improved its securitization platform, it faced significant challenges such as a decline in revenue and unit volumes alongside increased procurement costs and higher delinquencies. The overall sentiment is balanced with notable improvements in some areas but also significant pressures in others.
Q1-2026 Updates
Positive Updates
Gross Margin Expansion
Gross margin expanded to 36.6%, a 160 basis point increase over the prior year quarter.
Interest Income Growth
Interest income increased by 7.5% year-over-year, supported by a larger portfolio and more payments collected.
Securitization Platform Improvement
The company closed a $172 million securitization with a weighted average coupon of 5.46%, marking a 81 basis point improvement from the previous deal.
Increased Credit Applications
Credit applications were up 10% year-over-year, with a sharp uptick in July showing a 26.5% increase.
Improved Collections Efficiency
Total collections rose by 6.2% to $183.6 million, with digital payment channels contributing to higher average collection per active customer.
Negative Updates
Revenue Decline
Total revenue for the quarter was $341.3 million, a decrease of 1.9% from the prior year, primarily due to fewer retail units sold.
Increased Procurement Costs
Procurement costs rose an incremental $500 per unit due to tariffs and wholesale pricing constraints.
Decline in Unit Volumes
Volumes declined by 5.7% to 13,568 units compared to 14,391 units a year ago.
Increased SG&A Expenses
Operating expenses for SG&A totaled $51.4 million, a 10.1% increase from the prior year, largely due to payroll growth and technology investments.
Higher Delinquency Rates
Delinquencies greater than 30 days were 3.8% at the end of the quarter, representing a 30 basis point increase.
Company Guidance
During America's Car-Mart's First Quarter Fiscal Year 2026 Earnings Call, several key metrics and strategic initiatives were highlighted. The company reported a gross margin expansion to 36.6%, a 7.5% increase in interest income, and a 6.2% rise in total collections. Credit applications increased by 10% year-over-year, reflecting strong demand, although website traffic remained flat. The company faced a $500 per unit increase in procurement costs due to tariffs, which put pressure on inventory capacity. However, enhancements in underwriting and pricing, particularly the rollout of LOS V2 and the Pay Your Way platform, have strengthened customer profiles and improved payment behaviors. Total revenue was $341.3 million, a 1.9% decrease from the previous year, attributed to a 5.7% decline in volumes to 13,568 units. SG&A expenses rose by 10.1% to $51.4 million, driven by payroll growth and technology investments, but are expected to decrease in the second half of the year. The company also improved its securitization platform, closing a $172 million issuance at a weighted average coupon of 5.46%, reflecting a 308 basis point improvement since the 2024-1 transaction.

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
65
Positive
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
58
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.14B1.39B1.39B1.41B1.21B918.61M
Gross Profit360.12M664.88M628.48M599.63M548.73M439.46M
EBITDA93.85M101.06M32.08M69.71M137.59M144.98M
Net Income12.17M17.89M-31.39M20.43M95.01M104.82M
Balance Sheet
Total Assets1.61B1.61B1.48B1.42B1.15B822.16M
Cash, Cash Equivalents and Short-Term Investments9.67M9.81M5.52M9.80M6.92M2.89M
Total Debt0.00845.07M818.70M638.60M502.14M290.61M
Total Liabilities1.04B1.04B1.01B1.12B675.95M415.66M
Stockholders Equity564.93M569.82M471.05M297.42M469.37M406.50M
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 Flow65.82M90.23M110.96M188.75M176.22M5.40M

America's Car-Mart Technical Analysis

Technical Analysis Sentiment
Negative
Last Price32.84
Price Trends
50DMA
45.07
Negative
100DMA
48.64
Negative
200DMA
48.34
Negative
Market Momentum
MACD
-3.64
Positive
RSI
30.49
Neutral
STOCH
17.40
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 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
781.59M20.718.49%0.68%67.41%
59
Neutral
1.68B-83.55-2.40%3.04%5.15%48.98%
58
Neutral
811.87M-1.257.34%348.38%-1821.85%
56
Neutral
166.29M-1.462329.79%-14.27%67.06%
50
Neutral
$271.28M21.082.54%0.79%
42
Neutral
713.35M-18.4874.03%0.00%0.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRMT
America's Car-Mart
32.84
-10.23
-23.75%
CWH
Camping World Holdings
16.46
-6.56
-28.50%
CARS
Cars
12.72
-4.98
-28.14%
RDNW
RideNow Group
4.37
-0.03
-0.68%
UXIN
Uxin
3.46
0.98
39.52%
CANG
Cango
4.58
2.98
186.25%

America's Car-Mart Corporate Events

Private Placements and Financing
America’s Car-Mart Completes Major Securitization Transaction
Positive
Sep 2, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
America’s Car-Mart Regains Nasdaq Compliance
Positive
Aug 14, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
America’s Car-Mart Faces Nasdaq Non-Compliance Notice
Negative
Aug 1, 2025

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.

Financial DisclosuresRegulatory Filings and Compliance
America’s Car-Mart Delays Annual Report Filing
Negative
Jul 30, 2025

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.

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: Sep 05, 2025