America's Car-Mart (CRMT)
NASDAQ:CRMT
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America's Car-Mart
(NASDAQ:CRMT)
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Rating:47Neutral
Price Target:
$7.00
▼(-47.64% Downside)
Action:Reiterated
Date:06/02/26
The score is held down primarily by weak financial performance (TTM revenue decline, severe margin compression, and a large net loss) and a strong bearish price trend versus major moving averages. Offsetting factors are the return to positive TTM operating/free cash flow and a mixed-but-manageable earnings-call outlook with tangible financing/operational progress, though the unresolved warehouse facility remains the key near-term overhang.
Positive Factors
Leverage Reduction / Balance Sheet Strength
Reported near-zero corporate debt and a sizable equity base materially improve financial flexibility versus prior highly levered years. This structural de‑risking lowers near-term insolvency risk, increases capacity to absorb operating shocks, and supports strategic options while management restores origination capacity.
Negative Factors
Profitability and Margin Compression
Substantial margin compression and a large TTM net loss undermine return on equity and the business’s ability to self‑fund growth. Persistently depressed margins reduce cushion for credit losses and interest costs, forcing continued cost cuts or scale losses unless underwriting, pricing, or recovery values meaningfully improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage Reduction / Balance Sheet Strength
Reported near-zero corporate debt and a sizable equity base materially improve financial flexibility versus prior highly levered years. This structural de‑risking lowers near-term insolvency risk, increases capacity to absorb operating shocks, and supports strategic options while management restores origination capacity.
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
$64.18M
Dividend YieldN/A
Average Volume (3M)198.35K
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-2.67%
EPS Growth-1336.84%
CountryUS
Employees2,280
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-11.37
Shares Outstanding8,302,450
10 Day Avg. Volume252,350
30 Day Avg. Volume198,354
Financial Highlights & Ratios
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 Cap14.59
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda44.45
Forecast
1Y Price Target
$14.00Price Target Upside4.71% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)$1.36B
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
America’s Car-Mart primarily makes money through a vertically integrated “sell-and-finance” model: (1) Used vehicle sales revenue: The company generates revenue by selling used vehicles at its dealerships. Vehicle gross profit is influenced by pur...
America's Car-Mart Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Neutral
The call described a mixed but manageable situation: the company faced a meaningful volume and revenue decline (22.1% and 12% respectively) driven chiefly by a capital-structure constraint (absence of a revolving warehouse facility) and an acute weather disruption, yet delivered several constructive operational and financing achievements — execution of a $300M term loan and a $161.3M ABS in a stressed market, improving unit economics (gross profit/unit +8.8%), stronger collections and credit mix, digital payments adoption, and a rebuilt cash balance. Key near-term risk remains the timing and completion of a revolving warehouse facility needed to fully restore origination capacity. Given the balance of substantial mitigating accomplishments against material near-term headwinds, the overall tone is mixed but resilient.Positive Updates
Successful Capital Markets Execution (Term Loan and ABS)
Closed $300M term loan in October (retiring revolving line) and executed a $161.3M ABS (2025-4) in December with a 7.02% weighted average coupon using a residual cash flow (non-turbo) structure — viewed as a sign of investor and rating agency confidence in a turbulent subprime market.
Negative Updates
Significant Retail Volume Decline
Retail units sold declined 22.1% year over year to 10,275 units, primarily driven by constrained ability to purchase inventory during the financing platform transition (lack of a revolving warehouse facility), a 12% smaller footprint, and Winter Storm Fern.
Read all updates
Q3-2026 Updates
Positive
Negative
Successful Capital Markets Execution (Term Loan and ABS)
Closed $300M term loan in October (retiring revolving line) and executed a $161.3M ABS (2025-4) in December with a 7.02% weighted average coupon using a residual cash flow (non-turbo) structure — viewed as a sign of investor and rating agency confidence in a turbulent subprime market.
Read all positive updates
Company Guidance
Management's guidance was clear that the warehouse/revolving facility is the singular near‑term priority because volumes will remain constrained until it is completed—retail units fell 22.1% year‑over‑year to 10,275 and total revenue was $286.8M (down 12%), even though average retail sales price rose 7.1% to $20,634; inventory had bottomed in December and was up ~44% heading into tax season. On capital, the company closed a $300M term loan and completed a $161.3M ABS (2025‑4) at a 7.02% weighted average coupon, holds total cash of $237M with total debt of $892.2M (debt net of cash to finance receivables 44.7%), and expects blended cost of capital and interest expense (quarterly interest $21.8M, 5.8% of sales; nine‑month $54.5M) to improve as more originations fund through residual‑structure ABS. Operational and cost guidance: phase one and two consolidations reduced the footprint by 18 locations to 136 stores, SG&A was $51.5M (23.1% of sales) or $48.7M adjusted (21.9%) versus a 16.5% long‑term target with run‑rate savings expected to flow in Q4 (management cited an approximate current monthly run‑rate nearer $45–46M). Credit guidance emphasized portfolio strength—net charge‑offs were 6.5% of average finance receivables (vs. 6.1% prior quarter), allowance for credit losses rose to 25.53% (~3.6x quarterly charge‑offs) while net charge‑offs fell from $106M to $96M and units charged off fell ~10,300 to ~9,200; collections were $179M (up 1.5%), cash collected as a % of avg receivables improved 11 bps, average collected per active account was $581 (up 2.3%), highest credit tier now 66.7% (from 62.8%), and 30+ day delinquencies moved from 4.4% at quarter end back toward ~3.7–3.8% by mid‑February.America's Car-Mart Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
68
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 1.39B | 1.39B | 1.41B | 1.21B | 918.61M |
| Gross Profit | 405.75M | 664.88M | 628.48M | 599.63M | 548.73M | 439.46M |
| EBITDA | 21.06M | 101.06M | 32.08M | 69.71M | 137.59M | 145.87M |
| Net Income | -94.31M | 17.89M | -31.39M | 20.43M | 95.01M | 104.82M |
Balance Sheet | ||||||
| Total Assets | 1.63B | 1.61B | 1.48B | 1.41B | 1.15B | 822.16M |
| Cash, Cash Equivalents and Short-Term Investments | 117.91M | 9.81M | 5.52M | 9.80M | 6.92M | 2.89M |
| Total Debt | 952.19M | 845.07M | 819.52M | 700.90M | 502.14M | 290.61M |
| Total Liabilities | 1.15B | 1.04B | 1.01B | 915.79M | 677.76M | 415.26M |
| Stockholders Equity | 479.42M | 569.82M | 471.05M | 498.85M | 476.83M | 406.80M |
Cash Flow | ||||||
| Free Cash Flow | 14.16M | -52.61M | -80.04M | -160.21M | -135.19M | -62.76M |
| Operating Cash Flow | 16.44M | -48.76M | -73.90M | -137.97M | -114.28M | -53.81M |
| Investing Cash Flow | -2.15M | -11.38M | -10.64M | -25.33M | -22.24M | -8.26M |
| Financing Cash Flow | 96.33M | 90.23M | 110.96M | 188.75M | 176.22M | 5.40M |
America's Car-Mart Technical Analysis
Negative
13.37
Price Trends
11.88
Negative
16.57
Negative
22.36
Negative
Market Momentum
-1.23
Positive
33.40
Neutral
17.42
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 13.37 is above the 20-day moving average (MA) of 10.93, above the 50-day MA of 11.88, and below the 200-day MA of 22.36, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.42 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 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $514.87M | 20.07 | 5.71% | ― | 0.90% | -35.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $441.55M | -10.93 | 48.78% | ― | 79.27% | 98.99% | |
48 Neutral | $48.95M | -0.74 | -38.32% | ― | 41.94% | 72.15% | |
47 Neutral | $64.18M | -0.68 | -2.60% | ― | -2.67% | -1336.84% | |
43 Neutral | $9.15M | -0.09 | -543.84% | ― | ― | 91.89% | |
43 Neutral | $132.66M | -0.19 | -54.82% | ― | 160.50% | -13248.56% |
* Consumer Cyclical Sector Average
CRMT
America's Car-Mart
7.73
-47.02
-85.88%
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America's Car-Mart Corporate Events
Business Operations and StrategyExecutive/Board Changes
America’s Car-Mart Forms Special Committee for Strategic Review
Neutral
May 29, 2026
On May 22, 2026, America’s Car-Mart expanded its board of directors from nine to ten members and appointed Adam Paul as an independent director, effective immediately, reflecting an effort to strengthen governance and oversight. On the same ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
America’s Car-Mart Closes Dealerships Amid Liquidity-Driven Restructuring
Negative
Apr 7, 2026
On April 7, 2026, America’s Car-Mart’s board approved the closure of 42 of its 136 dealerships and related staff reductions to align costs with constrained capital and lower near-term origination capacity. The affected locations repres...
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.