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Fundamental analysis: Americas Car-Mart, Inc. (CRMT)

Awarener score: 6.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Very good), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

  • Business has been growing at a very good pace. It's been similar to peer companies.
  • Americas Car-Mart, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 7.0

  • CRMT profit margins -on goods and services sold- are usually good. They stand better than most rival companies.
  • Business profit on sales tends to be very good. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 7.0

  • Americas Car-Mart, Inc. profit -on goods and services sold- has been growing at a good pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares similar to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at a good speed. It was slightly worse than rivals.
  • In the previous years, growth on total net profit has been average, and similar to peer companies.
  • Earnings per share have grown at a normal rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 6.0

  • CRMT had to pay sparse income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

  • Americas Car-Mart, Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks similar to competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 3.8

  • CRMT on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands more than average in relation to rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is encouraging in relation to industry peers.
  • In the past twelve months it paid very little dividends, considering the current stock price. It came worse than most competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved in a weak position compared to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a weak position compared to rivals.
  • The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 6.7

  • Americas Car-Mart, Inc. intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be great when measured against peer companies.
  • Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
  • Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains somewhat better than rival firms.
  • Most resources controlled are already cash or short-term investments, which is best for liquidity. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on cash. It still ranks top tier when measured against peers.
  • Normally has approximately only a couple of weekly sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's close to average when compared to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly better than rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks encouraging in relation to comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 6.3

  • Americas Car-Mart, Inc. looks very cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
  • In the past twelve months, the company consumed lots of funds. Either it reinvested heavily in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
  • The company usually consumes much more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving significant business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks in a weak position compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still in good shape compared to peer companies.

Total score: 6.8


CRMT logos

Company at a glance: Americas Car-Mart, Inc. (CRMT)

Sector, industry: Consumer Cyclical, Auto & Truck Dealerships

Market Cap: 0.40 billions

Revenues TTM: 1.28 billions

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2022, the company operated 154 dealerships in the South-Central United States. The company was founded in 1981 and is based in Rogers, Arkansas.

Awarener score: 6.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Very good), and the company's inclination to return cash to the stockholders (Very good).