Update shared on 12 Dec 2025
Fair value Decreased 22%Analysts have trimmed their price target on America's Car-Mart from 58.00 dollars to 45.00 dollars, reflecting expectations for stronger top line growth but lower profit margins and a more conservative future earnings multiple.
What's in the News
- Reported second quarter net charge offs of $106.3 million, up from $100.1 million in the first quarter, highlighting rising credit losses in the portfolio (Key Developments)
- Entered into an agreement for a $300 million senior secured term loan credit facility maturing October 30, 2030, bolstering liquidity and funding capacity (Key Developments)
Valuation Changes
- The fair value estimate has fallen significantly from $58.00 to $45.00 per share. This indicates a more cautious outlook on intrinsic value.
- The discount rate has risen slightly from 12.32 percent to 12.50 percent, reflecting a modest increase in perceived risk or required return.
- Revenue growth has increased moderately from approximately 3.41 percent to 4.01 percent, signaling expectations for somewhat faster top line expansion.
- Net profit margin has declined meaningfully from about 3.13 percent to 2.47 percent, pointing to anticipated margin compression.
- The future P/E has fallen notably from about 17.20x to 13.35x, implying a lower valuation multiple on projected earnings.
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