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

Fundamentals

Solid track record and fair value.


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


Market Performance


7 Day Return

2.1%

CRMT

0.5%

US Specialty Retail

0.4%

US Market


1 Year Return

27.4%

CRMT

8.4%

US Specialty Retail

11.4%

US Market

Return vs Industry: CRMT exceeded the US Specialty Retail industry which returned 8.4% over the past year.

Return vs Market: CRMT exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

CRMTIndustryMarket
7 Day2.1%0.5%0.4%
30 Day-4.0%4.0%0.3%
90 Day3.0%3.6%-1.2%
1 Year27.4%27.4%10.3%8.4%13.9%11.4%
3 Year121.5%121.5%44.7%37.1%47.2%37.6%
5 Year98.7%98.7%55.6%42.3%62.4%44.6%

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?

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRMT ($90.17) is trading below our estimate of fair value ($110.1)

Significantly Below Fair Value: CRMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CRMT is good value based on its PE Ratio (11.7x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: CRMT is good value based on its PE Ratio (11.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CRMT is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: CRMT is overvalued based on its PB Ratio (2.2x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is America's Car-Mart forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRMT's forecast earnings growth (2.6% per year) is below the savings rate (2.7%).

Earnings vs Market: CRMT's earnings (2.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CRMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRMT's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CRMT's revenue (4.2% 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?

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CRMT's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: CRMT's earnings growth over the past year (29.4%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: CRMT earnings growth over the past year (29.4%) exceeded the Specialty Retail industry 6.8%.


Return on Equity

High ROE: CRMT's Return on Equity (19.1%) is considered low.


Return on Assets

ROA vs Industry: CRMT has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: CRMT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: CRMT's short term assets ($485.3M) exceeds its short term liabilities ($32.4M)

Long Term Liabilities: CRMT's short term assets (485.3M) exceeds its long term liabilities (242.9M)


Debt to Equity History and Analysis

Debt Level: CRMT's debt to equity ratio (58.8%) is considered high

Reducing Debt: CRMT's debt to equity ratio has increased from 44.6% to 58.8% over the past 5 years.

Debt Coverage: CRMT's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: CRMT's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: CRMT has a low level of unsold assets or inventory.

Debt Coverage by Assets: CRMT's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

0.007%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0.007%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of America's Car-Mart's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jeff Williams (56yo)

1.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CRMT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

Experienced Board: CRMT's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$686,32008 Jul 19
William Henderson
EntityIndividual
Role
Member of the Board of Directors
Advisor & Director
Shares8,000
Max PriceUS$86.08
SellUS$277,74029 Mar 19
Jim von Gremp
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$92.58
SellUS$821,20501 Mar 19
William Henderson
EntityIndividual
Role
Member of the Board of Directors
Advisor & Director
Shares10,000
Max PriceUS$82.58
BuyUS$679,46912 Dec 18
Daniel Englander
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$68.23

Ownership Breakdown


Management Team

  • Hank Henderson (56yo)

    Advisor & Director

    • Tenure: 17.1yrs
    • Compensation: US$80.26k
  • Jeff Williams (56yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.10m
  • Vickie Judy (52yo)

    CFO & Secretary

    • Tenure: 1.8yrs
    • Compensation: US$339.75k
  • Leonard Walthall (53yo)

    Chief Operating Officer

    • Tenure: 0.2yrs
  • W. Papasan

    Chief Legal Officer

    • Tenure: 0yrs

Board Members

  • Hank Henderson (56yo)

    Advisor & Director

    • Tenure: 17.1yrs
    • Compensation: US$80.26k
  • Ray Dillon (63yo)

    Independent Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$147.77k
  • Dan Englander (50yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$151.10k
  • Josh Welch

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$141.10k
  • Jeff Williams (56yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.10m
  • Ann Bordelon (51yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$13.33k
  • Jim von Gremp (69yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$144.43k

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$600.408m
  • Shares outstanding: 6.66m
  • 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.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:31
End of Day Share Price2019/10/23 00:00
Earnings2019/07/31
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.