NasdaqGS:CRMT

Stock Analysis Report

Executive Summary

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has America's Car-Mart's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRMT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

38.5%

CRMT

15.7%

US Specialty Retail

9.4%

US Market


1 Year Return

-32.4%

CRMT

-20.9%

US Specialty Retail

-6.8%

US Market

Return vs Industry: CRMT underperformed the US Specialty Retail industry which returned -28.7% over the past year.

Return vs Market: CRMT underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

CRMTIndustryMarket
7 Day38.5%15.7%9.4%
30 Day-30.3%-13.6%-3.9%
90 Day-40.5%-26.3%-16.5%
1 Year-32.4%-32.4%-19.7%-20.9%-4.8%-6.8%
3 Year84.9%84.9%9.4%4.0%23.4%15.2%
5 Year25.2%25.2%8.8%0.1%41.3%25.7%

Price Volatility Vs. Market

How volatile is America's Car-Mart's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is America's Car-Mart undervalued compared to its fair value and its price relative to the market?

7.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRMT ($58.78) is trading above our estimate of fair value ($4.14)

Significantly Below Fair Value: CRMT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRMT is good value based on its PE Ratio (6.9x) compared to the Specialty Retail industry average (7x).

PE vs Market: CRMT is good value based on its PE Ratio (6.9x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRMT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRMT is overvalued based on its PB Ratio (1.3x) compared to the US Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is America's Car-Mart forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRMT's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: CRMT's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: CRMT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRMT's revenue (5.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CRMT's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CRMT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has America's Car-Mart performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRMT has high quality earnings.

Growing Profit Margin: CRMT's current net profit margins (7.8%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: CRMT's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: CRMT's earnings growth over the past year (31.1%) exceeds its 5-year average (24% per year).

Earnings vs Industry: CRMT earnings growth over the past year (31.1%) exceeded the Specialty Retail industry 6.9%.


Return on Equity

High ROE: CRMT's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is America's Car-Mart's financial position?


Financial Position Analysis

Short Term Liabilities: CRMT's short term assets ($531.5M) exceed its short term liabilities ($33.0M).

Long Term Liabilities: CRMT's short term assets ($531.5M) exceed its long term liabilities ($272.7M).


Debt to Equity History and Analysis

Debt Level: CRMT's debt to equity ratio (63.3%) is considered high.

Reducing Debt: CRMT's debt to equity ratio has increased from 49.6% to 63.3% over the past 5 years.

Debt Coverage: CRMT's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: CRMT's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

What is America's Car-Mart's current dividend yield, its reliability and sustainability?

0.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CRMT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CRMT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CRMT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRMT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRMT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jeff Williams (56yo)

2.25s

Tenure

US$3,095,784

Compensation

Mr. Jeffrey A. Williams, also known as Jeff, has been the President of America's Car-Mart, Inc. since March 1, 2016 and has been its Chief Executive Officer since January 1, 2018. He served as Chief Financ ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.10M) is above average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Williams
President2.25yrsUS$3.10m1.38% $5.9m
Vickie Judy
CFO & Secretary2.25yrsUS$339.75k0.18% $773.0k
William Henderson
Advisor & Director17.58yrsUS$80.26k1.76% $7.5m
Leonard Walthall
Chief Operating Officer0.67yrno data0.18% $749.7k
W. Papasan
Chief Legal Officerno datano datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CRMT's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Williams
President2.25yrsUS$3.10m1.38% $5.9m
William Henderson
Advisor & Director17.58yrsUS$80.26k1.76% $7.5m
Ray Dillon
Independent Chairman of the Board1.67yrsUS$147.77k0.038% $161.1k
Daniel Englander
Independent Director13.17yrsUS$151.10k3.11% $13.3m
Joshua Welch
Independent Director2.25yrsUS$141.10kno data
Ann Bordelon
Independent Director1.25yrsUS$13.33k0.020% $85.4k
Jim von Gremp
Independent Director4.33yrsUS$144.43k0.34% $1.4m

4.3yrs

Average Tenure

56yo

Average Age

Experienced Board: CRMT's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CRMT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

America's Car-Mart, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: America's Car-Mart, Inc.
  • Ticker: CRMT
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$426.279m
  • Shares outstanding: 6.61m
  • Website: https://www.car-mart.com

Number of Employees


Location

  • America's Car-Mart, Inc.
  • 802 Southeast Plaza Avenue
  • Suite 200
  • Bentonville
  • Arkansas
  • 72712
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRMTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1987
HC9DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1987

Biography

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of May 21, 2019, it operated 144 dealerships. America's Car-Mart, Inc. was founded in 1981 and is based in Bentonville, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 07:12
End of Day Share Price2020/04/09 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.