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America's Car-Mart
(NASDAQ:CRMT)
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Rating:45Neutral
Price Target:
$1.00
▼(-57.45% Downside)
Action:Reiterated
Date:10/09/26
The score is weighed down primarily by the severe TTM earnings deterioration (revenue decline, large net loss, negative EBITDA) and clear bearish technicals (price below all key moving averages with weak momentum). Strong recent operating/free cash flow and an improved TTM leverage snapshot provide partial support, but ongoing covenant-relief extensions and strategic-review uncertainty keep risk elevated, and valuation is not meaningfully supportive given negative earnings and no dividend yield.
Positive Factors
Integrated used-vehicle and financing model
The integrated buy-here, pay-here model combines vehicle retailing with finance-related income, allowing Car-Mart to participate in both the sale and subsequent installment payments. Its focus on customers underserved by traditional lenders provides a defined market position and supports recurring receivable income.
Negative Factors
Severe revenue and profitability deterioration
The sharp revenue contraction and move to a large net loss with negative EBITDA indicate that the current operating model is not covering its cost and credit-loss burden. Sustained weak profitability could reduce retained capital, constrain investment, and undermine the earnings base needed to support recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated used-vehicle and financing model
The integrated buy-here, pay-here model combines vehicle retailing with finance-related income, allowing Car-Mart to participate in both the sale and subsequent installment payments. Its focus on customers underserved by traditional lenders provides a defined market position and supports recurring receivable income.
Read all positive factors
America's Car-Mart Key Performance Indicators (KPIs)
Any
Revenue By Type
Shows how revenue is generated across different business segments, highlighting which areas drive growth and profitability. This can indicate strategic focus and market demand for specific offerings.
Shows how revenue is generated across different business segments, highlighting which areas drive growth and profitability. This can indicate strategic focus and market demand for specific offerings.
Data provided by:
The Fly
The FlyAmerica's Car-Mart (CRMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.97M
Dividend YieldN/A
Average Volume (3M)539.15K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-21.59%
EPS Growth-1589.52%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-23.81
Shares Outstanding8,338,478
10 Day Avg. Volume412,014
30 Day Avg. Volume539,155
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.23
Price to Sales (P/S)0.08
P/FCF Ratio1.60
Enterprise Value/Market Cap53.66
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda-14.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.57
Revenue Forecast (FY)$1.05B
America's Car-Mart Business Overview & Revenue Model
Company Description
Through its various subsidiaries, America's Car-Mart, Inc. functions as an automotive retailer across the United States. The company's core business involves selling pre-owned, older model vehicles, complemented by providing financing solutions di...
How the Company Makes Money
Car-Mart generates revenue primarily through (1) retail sales of used vehicles and (2) finance-related income from providing financing to customers as part of its buy-here, pay-here model. In a typical transaction, the company sells a used vehicle...
America's Car-Mart Earnings Call Summary
Earnings Call Date:May 25, 2026
(Q4-2026)
| Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Negative
The call presents a mixed but cautionary picture. Management executed a deliberate strategic response to constrained financing — consolidating 60 stores, cutting costs, investing in digital servicing, and preserving collections — producing tangible operational resilience (collections growth, improved per-unit economics, debt reduction and S&P affirmation of securitizations). However, the company faces significant near-term headwinds: sharp declines in unit sales (-27.1%) and revenue (-18.2%), higher charge-offs and delinquencies, a smaller receivables base due to constrained originations, a meaningful going concern disclosure, and an unresolved need for additional financing. Positive operational progress is evident, but the unresolved liquidity and capital-structure risks and material declines in top-line volume are significant negatives in the near term.Positive Updates
Strategic Footprint Optimization Completed
Completed 60 store consolidations, reducing active store count from 154 to 94 (≈39% fewer stores). Remaining stores are historically more productive — approximately 30% higher units-per-store vs the FY2025 average — concentrating resources in stronger markets.
Negative Updates
Sharp Decline in Unit Sales and Revenue
Units sold declined 27.1% YoY to 11,411 units. Revenue fell 18.2% YoY to $302.8 million, reflecting constrained originations and reduced inventory tied to capital limits.
Read all updates
Q4-2026 Updates
Positive
Negative
Strategic Footprint Optimization Completed
Completed 60 store consolidations, reducing active store count from 154 to 94 (≈39% fewer stores). Remaining stores are historically more productive — approximately 30% higher units-per-store vs the FY2025 average — concentrating resources in stronger markets.
Read all positive updates
Company Guidance
The company did not provide formal forward financial guidance on the call but set clear operational and financing guidance: a special committee is leading a defined strategic review (per the June 19 amendment) that provides temporary covenant relief and a milestone-driven window to secure permanent relief (or a financing/recapitalization) — until that is resolved originations will remain constrained and the company will run lean to protect collections and service the portfolio. Key metrics cited that frame that guidance include Q4 unit sales of 11,411 (down 27.1%), Q4 revenue of $302.8M (down 18.2%) and Q4 gross margin of 31.2% (vs. 36.4% a year ago) with FY gross margin 35.4% and gross profit per unit up 1% to $7,442; full-year collections of $730M (up 2.2%) and Q4 collections of $185.7M (~$60M/month, down 2.8% YoY) with average collected per active customer per month $617 (vs. $612); finance receivables principal down 6.4% YoY, approx. 60% of receivables securitized (with material releases scheduled over roughly the next 15 months), allowance for credit losses $329.9M (25.15% of receivables, ~3x quarterly net charge-offs), Q4 net charge-offs 7.5% (vs. 6.9%), adjusted SG&A $43.6M (18% of sales), total cash $131.6M (unrestricted $47M), total debt $722.4M (total debt net of cash $590.7M, net debt/finance receivables 41.8%), interest expense $20M (up 15.1%), Q4 GAAP loss per share $3.56 (adjusted EPS $0.48), and FY adjusted loss per share $3.71 — the company will provide updates when definitive financing or strategic outcomes are reached.America's Car-Mart Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.03B | 1.28B | 1.39B | 1.39B | 1.21B | 918.61M |
| Gross Profit | 460.26M | 617.44M | 664.88M | 628.48M | 548.73M | 439.46M |
| EBITDA | -40.27M | -99.81M | 101.10M | 32.08M | 135.35M | 145.87M |
| Net Income | -197.75M | -139.15M | 17.89M | -31.39M | 95.01M | 104.82M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 1.42B | 1.61B | 1.48B | 1.15B | 822.16M |
| Cash, Cash Equivalents and Short-Term Investments | 27.53M | 46.96M | 9.81M | 5.52M | 6.92M | 2.89M |
| Total Debt | 671.25M | 772.20M | 845.07M | 819.52M | 502.14M | 290.61M |
| Total Liabilities | 829.66M | 971.18M | 1.04B | 1.01B | 677.76M | 415.26M |
| Stockholders Equity | 376.48M | 445.56M | 569.82M | 471.05M | 476.83M | 406.80M |
Cash Flow | ||||||
| Free Cash Flow | 149.43M | 63.15M | -52.65M | -80.08M | -135.19M | -62.76M |
| Operating Cash Flow | 150.95M | 64.96M | -48.76M | -73.94M | -114.28M | -53.81M |
| Investing Cash Flow | -291.00K | -1.52M | -11.38M | -10.64M | -22.24M | -7.56M |
| Financing Cash Flow | -162.10M | -56.41M | 90.66M | 110.96M | 176.22M | 5.40M |
America's Car-Mart Technical Analysis
Neutral
2.35
Price Trends
2.07
Negative
3.44
Negative
10.89
Negative
Market Momentum
-0.23
Negative
47.57
Neutral
90.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRMT, the sentiment is Neutral. The current price of 2.35 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 2.07, and below the 200-day MA of 10.89, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 90.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRMT.
America's Car-Mart Risk Analysis
America's Car-Mart disclosed 19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $65.49B | 20.87 | 46.57% | ― | 53.98% | 159.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $7.20B | 23.85 | 4.80% | ― | 4.09% | -40.01% | |
56 Neutral | $5.14B | 7.05 | 33.18% | ― | -0.06% | 35.87% | |
54 Neutral | $2.74B | 9.63 | 9.96% | 0.93% | 0.81% | -33.60% | |
53 Neutral | $1.92B | 9.57 | 20.45% | 2.59% | 5.25% | 37.36% | |
45 Neutral | $10.97M | -0.06 | -42.60% | ― | -21.59% | -1589.52% |
* Consumer Cyclical Sector Average
CRMT
America's Car-Mart
1.47
-24.83
-94.43%
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America's Car-Mart Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Obtains Short-Term Credit Covenant Relief
Negative
Oct 8, 2026
America’s Car-Mart, Inc. announced that its lenders, led by Silver Point Finance, have extended limited waivers and temporary covenant relief under its Credit and Guaranty Agreement, originally amended in June 2026, with the scheduled termin...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Extends Credit Waivers Amid Strategic Review
Negative
Oct 1, 2026
America’s Car-Mart, Inc. disclosed that, under an amendment to its October 30, 2025 credit and guaranty agreement with Silver Point Finance, LLC and other lenders, anticipated and existing events of default have been temporarily waived and m...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Extends Credit Waivers, Explores Options
Negative
Sep 24, 2026
America’s Car-Mart disclosed that, following earlier agreements dating back to June 25, 2026, its lenders and administrative agent under an October 30, 2025 Credit and Guaranty Agreement have repeatedly amended and granted limited waivers of...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
America’s Car-Mart Shareholders Approve Expanded Equity Incentive Plan
Neutral
Sep 24, 2026
At its annual meeting of stockholders held on Sept. 23, 2026, America’s Car-Mart, Inc. obtained shareholder approval for an amendment to its 2024 Equity Incentive Plan, increasing the maximum number of shares of common stock available for is...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Extends Waivers Amid Strategic Review
Negative
Sep 18, 2026
America’s Car-Mart, Inc. reported that its lenders, led by Silver Point Finance, LLC, have repeatedly extended temporary waivers of certain anticipated or existing events of default under its October 30, 2025 Credit and Guaranty Agreement. T...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Extends Waiver Amid Strategic Review
Negative
Sep 11, 2026
America’s Car-Mart disclosed that it entered into an amendment and limited waiver to its Credit and Guaranty Agreement, originally dated October 30, 2025, with Silver Point Finance and other lenders. Under this amendment, certain existing or...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
America’s Car-Mart Secures Short-Term Waiver Extension
Negative
Sep 4, 2026
On June 25, 2026, America’s Car-Mart entered into an amendment and limited waiver to its existing Credit and Guaranty Agreement, under which lenders agreed to waive certain anticipated or existing events of default through a scheduled termin...
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.