Added to YB: 2025-10-28
Pitch date: 2025-10-24
CRMT [bullish]
America's Car-Mart, Inc.
-5.58%
current return
Author Info
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Company Info
America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States.
Market Cap
$212.0M
Pitch Price
$25.63
Price Target
80.00 (+231%)
Dividend
N/A
EV/EBITDA
15.80
P/E
-14.20
EV/Sales
0.71
Sector
Specialty Retail
Category
turnaround
Strong Long-Term Performance, Credit Cycle Headwinds and High Short Interest, but Substantial Upside if Successfully Navigating This Period - America's Car-Mart, Inc.
CRMT: Subprime auto lender at 0.40x P/TB (historically only below 0.50x for 0.4% of days since 2012). $26 stock, -78% from 3yr high. High debt/equity 150% but asset-backed with $326M credit reserves. Unit sales down but new credit system improving. Recent ABS oversubscribed 8-16x at lower rates. Bull case: 3yr target $80/share (47% CAGR) on market normalization to 0.9x EV/sales. Risk: further charge-offs beyond reserves could erode equity.
Read full article (8 min)