📊 CRMT Key Takeaways
Is Americas Carmart Inc. (CRMT) a Good Investment?
Americas CarMart is in financial distress despite 24.7% revenue growth, with massive operating losses of $108M and net losses of $139.2M on $1.3B revenue. Profitability metrics are deeply negative across the board (Operating Margin -8.4%, Net Margin -10.9%, ROE -31.2%), indicating fundamental business challenges that growth alone is not offsetting. While positive FCF of $63.1M suggests potential operational strength, the combination of chronic unprofitability, low cash reserves of $47M, and deteriorating shareholder returns presents substantial risk.
Americas CarMart is showing strong top-line growth, but that growth is not translating into earnings or cash generation. Deeply negative operating and net margins, negative returns on capital, and slightly negative free cash flow point to weak growth quality and an unproven path back to sustainable profitability despite a still-healthy equity base and cash balance.
Americas Carmart Inc. Key Strengths (CRMT)
- Strong revenue growth of 24.7% YoY demonstrates market demand
- Positive free cash flow of $63.1M indicates cash generation despite losses
- Virtually zero debt (0.00x Debt/Equity) provides financial flexibility and restructuring capacity
- Reasonable gross margin of 20.6% shows underlying business economics at sales level
- Revenue growth remains strong at 21.4% year over year, indicating continued demand and portfolio expansion
- Gross margin of 27.0% suggests the core unit economics still retain some underlying profit potential before overhead, credit costs, and other expenses
- Balance sheet leverage appears low with minimal long-term debt and meaningful cash of $117.91M
CRMT Stock Risks: Americas Carmart Inc. Investment Risks
- Company is unprofitable at operating and net income levels, losing $139.2M despite $1.3B revenue
- All profitability metrics deeply negative (Operating Margin -8.4%, ROE -31.2%, ROA -9.8%) indicating structural problems, not cyclical downturn
- Cash position of only $47M is thin relative to $1.3B revenue and $970.8M liabilities, limiting runway
- EPS collapsed 820.6% YoY, destroying shareholder value and equity base
- Discrepancy between negative net income and positive FCF suggests potential non-cash charges masking operational issues
- Operating income of -$71.61M and net income of -$104.94M show severe profitability pressure and weak earnings quality
- Operating cash flow and free cash flow are both negative, suggesting earnings weakness is also showing up in cash generation
- Negative ROE of -21.9% and interest coverage of -2.0x indicate poor capital efficiency and limited earnings support for financing obligations
Key Metrics to Watch
- Operating margin trajectory—must show improvement toward positive to signal turnaround
- Cash burn rate—monitor if FCF remains positive or deteriorates as loss mitigation
- Gross margin sustainability—any decline would signal pricing pressure or margin erosion in core business
- Operating expense ratio as % of revenue—identify if cost-cutting can be achieved without gutting growth
- Operating margin and net credit-loss-related expense trends
- Operating cash flow and free cash flow recovery
Americas Carmart Inc. (CRMT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.9% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CRMT Profit Margin, ROE & Profitability Analysis
CRMT vs Automotive Sector: How Americas Carmart Inc. Compares
How Americas Carmart Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Americas Carmart Inc. Stock Overvalued? CRMT Valuation Analysis 2026
Based on fundamental analysis, Americas Carmart Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Americas Carmart Inc. Balance Sheet: CRMT Debt, Cash & Liquidity
CRMT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Americas Carmart Inc.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $-4.92 indicates the company is currently unprofitable.
CRMT Revenue Growth, EPS Growth & YoY Performance
CRMT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $222.6M | -$964.0K | $0.37 |
| Q2 2026 | $285.8M | -$964.0K | $0.55 |
| Q1 2026 | $276.2M | -$964.0K | $-0.15 |
| Q3 2025 | $240.4M | -$964.0K | $0.37 |
| Q2 2025 | $285.8M | -$964.0K | $0.55 |
| Q3 2024 | $240.4M | $1.5M | $0.23 |
| Q2 2024 | $302.2M | $3.1M | $0.48 |
| Q1 2024 | $287.2M | -$964.0K | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Americas Carmart Inc. Dividends, Buybacks & Capital Allocation
CRMT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Americas Carmart Inc. (CIK: 0000799850)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRMT
What is the AI rating for CRMT?
Americas Carmart Inc. (CRMT) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRMT's key strengths?
Claude: Strong revenue growth of 24.7% YoY demonstrates market demand. Positive free cash flow of $63.1M indicates cash generation despite losses. ChatGPT: Revenue growth remains strong at 21.4% year over year, indicating continued demand and portfolio expansion. Gross margin of 27.0% suggests the core unit economics still retain some underlying profit potential before overhead, credit costs, and other expenses.
What are the risks of investing in CRMT?
Claude: Company is unprofitable at operating and net income levels, losing $139.2M despite $1.3B revenue. All profitability metrics deeply negative (Operating Margin -8.4%, ROE -31.2%, ROA -9.8%) indicating structural problems, not cyclical downturn. ChatGPT: Operating income of -$71.61M and net income of -$104.94M show severe profitability pressure and weak earnings quality. Operating cash flow and free cash flow are both negative, suggesting earnings weakness is also showing up in cash generation.
What is CRMT's revenue and growth?
Americas Carmart Inc. reported revenue of $1.3B.
Does CRMT pay dividends?
Americas Carmart Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find CRMT SEC filings?
Official SEC filings for Americas Carmart Inc. (CIK: 0000799850) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRMT's EPS?
Americas Carmart Inc. has a diluted EPS of $-16.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CRMT's fundamental grade?
Based on our AI fundamental analysis in July 2026, Americas Carmart Inc. has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CRMT stock overvalued or undervalued?
Valuation metrics for CRMT: ROE of -31.2% (sector avg: 12%), net margin of -10.9% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is CRMT's AI grade for 2026?
Our dual AI analysis gives Americas Carmart Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRMT's free cash flow?
Americas Carmart Inc.'s operating cash flow is $65.0M, with capital expenditures of $1.8M. FCF margin is 4.9%.
How does CRMT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -10.9% (avg: 6%), ROE -31.2% (avg: 12%), current ratio N/A (avg: 1.2).