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

Awarener score: 6.8

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 (Very 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: 8.0

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

Margins score: 6.8

CRMT profit margins -on goods and services sold- are usually good. They stand top-notch against rival companies.
Business profit on sales tends to be good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in good shape compared 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 top tier when measured against comparable firms.

Growth score: 5.4

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

Miscellaneous score: 5.0

CRMT had to pay some income taxes in relation to profits made in the past years. It's been well ranked against 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: 8.5

Americas Car-Mart, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
In the past, got very good 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 great when measured against 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 a slight improvement 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: 4.6

Americas Car-Mart, Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains somewhat worse than rival firms.
Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. 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 mostly on cash. It still ranks top tier when measured against peers.
Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in a weak position compared to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers before a month from the purchase. It ranks similar to industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's lacking compared to similar companies.
Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands somewhat worse than rival firms.
Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
Revenues are very good 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 a slight improvement compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 4.8

Americas Car-Mart, Inc. looks expensive in relation to profits and financial position. It happens to be almost average when measured against 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 a disappointment 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 worse than most similar companies.
The company usually consumes 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 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 rather normal in relation to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks almost average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks in a weak position compared to rival firms.
There's no accounting equity, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains bottom tier against peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 5.9

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

Sector, industry: Consumer Cyclical, Auto & Truck Dealerships

Market Cap: 0.57 billions

Revenues TTM: 1.38 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.