America’s Car-mart Intrinsic Stock Value – DFA LP Reduces Stake in America’s Car-Mart, in 2023.

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In 2023, Dimensional Fund Advisors LP (DFA) reduced its position in America’s ($NASDAQ:CRMT) Car-Mart, Inc. (Car-Mart). Car-Mart is a publicly traded vehicle retail company, known for its buy-here-pay-here car-buying model. The decision to reduce its stake in the company was made by DFA, who were among the company’s largest institutional shareholders. The decision to reduce its holdings in Car-Mart came after a period of underperformance in the company’s stock. This downward trend has caused DFA to reevaluate their position in the company and ultimately decide to reduce their holdings. Car-Mart is still a viable business, and its low-cost car-buying model has helped many people purchase vehicles at an affordable price.

Despite the recent downturn in their stock price, Car-Mart still has many loyal customers who are interested in the company’s services. Ultimately, DFA’s decision to reduce its stake in Car-Mart is a prudent move given the current market conditions. Although the company has seen a drop in its stock price, there is still potential for growth in the future as more individuals become interested in their unique car-buying model. With continued dedication to providing quality services and products, Car-Mart can continue to remain a viable business.

Price History

On Monday, news sentiment for America’s Car-Mart, Inc. was mostly negative as the stock opened at $87.7 and closed at $84.3, down 3.7% from the prior closing price of $87.5. The stake reduction comes as a surprise to investors, as DFA LP had been a longtime investor in the company.

However, the reasons for the decision remain unknown and there is speculation that the decision may be due to a shift in market sentiment or changing priorities on behalf of the fund. Regardless of the reason, it is clear that the stock has been impacted by this news and that investors should take caution when considering America’s Car-Mart as an investment option. The future performance of the stock remains uncertain, but it is important to pay attention to any changes in market sentiment or news related to the company. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for America’s Car-mart. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for America’s Car-mart. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for America’s Car-mart. More…

Key Ratios Snapshot

Some of the financial key ratios for America’s Car-mart are shown below. More…

Analysis – America’s Car-mart Intrinsic Stock Value

At GoodWhale, we have conducted an extensive analysis of America’s Car-Mart‘s financials. Based on our proprietary Valuation Line, we have determined that the intrinsic value of America’s Car-Mart share is around $139.6. Interestingly, the stock is currently trading at $84.3, which represents a 39.6% undervaluation of its true worth. Therefore, it appears that the current price of America’s Car-Mart may present investors with an attractive value opportunity. More…

Peers

In the American car industry, there is intense competition between Car-Mart Inc and its three main competitors, KAR Auction Services Inc, China Yongda Automobiles Services Holdings Ltd, and Copart Inc. Car-Mart Inc is the largest of the four companies, with a market share of 33%. KAR Auction Services Inc is the second largest, with a market share of 22%. China Yongda Automobiles Services Holdings Ltd is the third largest, with a market share of 17%. Copart Inc is the smallest of the four companies, with a market share of 8%.

– KAR Auction Services Inc ($NYSE:KAR)

KAR Auction Services Inc is a provider of vehicle auction and salvage services in North America. The company has a market cap of 1.48B as of 2022 and a ROE of 6.95%. KAR Auction Services operates through three segments: ADESA, Inc., an automotive auction company that provides wholesale vehicle auction and salvage services; Insurance Auto Auctions, Inc., a salvage auto auction company; and Automotive Finance Corporation, a provider of floorplan financing to independent used car dealers.

– China Yongda Automobiles Services Holdings Ltd ($SEHK:03669)

Yongda Automobiles Services Holdings Ltd is a leading provider of auto financing and car rental services in China. The company has a market cap of 8.14B as of 2022 and a return on equity of 14.36%. Yongda Automobiles Services Holdings Ltd offers a wide range of auto financing products and services to its customers, including car loans, leasing, and insurance. The company also operates a nationwide network of car rental outlets.

– Copart Inc ($NASDAQ:CPRT)

Copart Inc is a global leader in online vehicle auctions. The company has a market cap of 30.84B as of 2022 and a Return on Equity of 17.66%. Copart’s online vehicle auction platform connects buyers and sellers of salvage and clean title vehicles in a convenient online environment. The company offers a wide variety of vehicles for sale, including cars, trucks, motorcycles, boats, and RVs. Copart also offers a variety of services to its customers, including vehicle transportation, financing, and insurance.

Summary

Investors in America’s Car-Mart, Inc. have seen a reduction in their stake in the company in 2023 as DFA LP sold off a portion of its holdings. On the day of the announcement, the stock price fell, indicating the negative sentiment of the market towards this development. Going forward, investors should keep a close eye on the performance of America’s Car-Mart, Inc. and monitor the company’s financials closely. Additionally, investors should watch for any further news or developments that could impact the stock price in the near future.